The Balance Of Rights In Corporate Governance

NVC holdings limited control over the conflict continues for several months which hasbecome the focus of attention. It is not the first case that occured in China.Gome " much raisea Babel of criticism of the first few Huang Chen dispute " and the existence of similarities.From the surface, this is a thing that people strive for right for theirselves incompany.However deeply considered about the power struggle, it also exposed somebehaviors of majority shareholder which will damage the company and other shareholdersespecially minority shareholders exists in the process of management and operation.Fromthis a power struggle emerged.In this paper, the author takes the NVC battle for controlperspective for example to analyze such cases that frequently happened in recent years.And Itry to seek solutions.The article includes five parts. In the first part I make a brief summary about thecase.The second part is the description and analysis of two typical examples of special causecontention.the third part of the content is to reveal the essence of the case and the analysis ofhidden behind these problems root. Here the essence of this case was understood ascontrolling shareholders in company management process abuse their power, for seekingpersonal gain, which causes strong resentment among the other shareholders and damages thecompany and other shareholders especially minority shareholders’ interests.Finally it results inthe fight. The author also analyzes the reasons of corporate governance in the unbalance ofrights and controlling shareholders abuse problems from four aspects which is the capitalmajority rule and the " one share one vote " voting system, founder of no change managementphilosophy, the imperfect systems of independent directors and board of supervisors. Thefourth part mainly expounds the harm of the problems caused by the unbalance of rights.Atthe same time it warns everyone to be alert to this problem and I try to seek the preventionand solution. The last part of a part is the most important, the author in the understanding ofmany scholars, combined with the actual case to put forward a set of solutions. The planincludes the following aspects: first,equaling the rights of shareholders and the board ofdirectors; second, The philosophy of company management fall behind; third, improving the systemof independent directors; fouth, playing the supervisory board effectiveness; fifth,coordinating the relationship between independent director and board of supervisors. I hope that through this discussion I can provides a solution for the case and relieve the situationand do a little contribution for the healthy development of the company.