The Research On Financial Problems Of The Attorney Rights Capture

Along with the separation of property rights and domination rights, the cost of attorney appears, and the deputation relationship between the stockholders and management organizations is formed. Hence the corporation masterdom market comes into being. As a part of the domination market, the attorney rights capture exists. Its essence is that the dissent shareholder competes with the management organization to gain more agent voting rights and thus control the company. Some helpful researches and explorations have been done to illustrate the positive effects of the power of attorney, and some proposals have also been put forward, but few has been involved to the financials problems, so to the policies. This article studies these two aspects in details. The essence of attorney rights capture is the disputes on procuration, and is a kind of polling system. Under this system, stockholders vote on the proposals by the director, by the present management organization, or by other stockholders. In the meanwhile, the present management and part of stockholders with objections try their best to collect the vote procuration from those stockholders who are absent from the stockholers' conference, by taking the advantage of emulative entrust documents, to increase the influence upon the voting result. So, dispute on procuration is essentially a contest for masterdom of the company between the present organization and those antipathic stockholders.Attorney rights capture, as an administrational system, can elevate the medium and small-sized stockholders'enthusiasm concerned with the corporation administration, and can benefit the medium and small-sized stockholders. The attorney rights capture has other functions as in punishing and in prompting the management as well, favoring the advancing of administrational level and the optimization of the corporation administration structure. Nowadays, experts have made a lot of researches on the positive significance of attorney rights captures, and many helpful proposals are raised already, but in our country, the studies are mainly done from the viewpoint of corporation administration. Little has been involved in the financial issues during the attorney rights captures, and proposals from the policy point of view are even talked in generalities.Based on the current corresponding researches, this paper introduces the theoretical base of attorney rights capture including entrust attorney theory and profits correlation theory and company domination theory. Then it analyses two concerned financial problems: stockholders'rights structure and financing structure. Through the analysis of the typical case in China—the capture of Victory stock , some problems existed in attorney rights capture in China have been put forward, which includes the shareholder structure, financial structure and the imperfect of the related laws and regulations .Finally some practical suggestions are given.