On The Protection Of Minority Shareholders' Rights And Interests In Listed Companies

With the development of economy during recent years, the maturer companysystem and increasing listed companies in China have contributed to the prosperity ofcapital market. The quick enhancement of capital market is beneficial to collect idlefund by issuing shares and then transfer it into production capital, which encouragesthe flexible utilization of resources in all aspects and furthers the growth ofcompanies. Besides, the medium and small shareholders can achieve investmentreturn from the profits of listed companies. It is known to all that the healthyadvancement of capital market not only depends on the promising future of the listedcompanies but also the confidence from investors. In capital market, the significanceof investment coming from medium and small shareholders should be emphasized. Inaddition, due to the large number and scattered distribution of medium and smallshareholders, the lack of attention to their rights will definitely hinder the organizeddevelopment of capital development and the stability of the society. During the pastyears, significant number of problems have been revealed in capital market, such asthe exposure of false information, insider trading, manipulation of share price andcontrolling even embezzlement of listed companies’ equity, which severely harm theinterest of medium and small investors and ask for immediate immediate attention.Under the influence of globalization, the listed companies in China make quickresponse to international trend, spare no efforts to connect with them and learn fromtheir advanced system and experience, which extremely benefits the stock marketexperiencing fast development. However, there’s still improvement to be made in therights protection of medium and small investors. At the meantime, the related lawsand policies require further completion.This paper will be divided into five parts.Firstly, the introduction of related concepts in listed companies.Secondly, theoretical analysis of protecting the rights of medium and smallshareholders. This paper illustrates the necessity of protecting medium and small shareholders’ rights from the perspective of the equality of stock rights, controlling ofshareholders’ trust and leaning towards disadvantaged shareholders.Thirdly, the current situation of damaged rights of medium and small shareholders.It mainly discusses the major approaches of controlling the behaviors of shareholdersabout damaging the rights of medium and small shareholders.Fourthly, existing problems of rights protection of medium and small shareholders.In regard to internal governance of companies, information publicity system, voterights system of board of shareholders’, relief litigation to shareholders, this papermakes a comprehensive analysis of issues in protection of medium and smallshareholders.Fifthly, the solutions of protection of medium and small shareholders. This paperproposes the advice of perfecting the rights protection respectively according to thecorespondent defects.