On The Construction Of Double Ownership Structure In China

Our legislation of corporation always carries out the principle of "Same Share with Same Right",which means the stockholders’voting weights are proportional to their holding of shares.Till now,there is no precedent although the State Council has been allowed to make specifications about issuing different types of shares.The principle has been regarded as the capital democracy,stockholder democracy and the requirement of equity integrity which builds on the basis of stockholders’ homogeneity.However,with the diversification of capital providers,different investors have big differences in many aspects such as interest demands,which leads to the trend of stockholders’heterogeneity. Company founders and their team pay more attention to common rights including voting rights in order to realize the company’s long-team development and long-team profit by setting and implementing the principles of management and operation strategy.Instead,other speculative investors concerning about the relationship between the proportion of input and output focus on self-rights including property rights and ignore the company’s operation and management.The different attentions between common rights and self-rights directly determine the direction of the development of the company,long living under the management of the company founders or dying on the vine under the control of the short-team investors.On the other hand,with the perfection and development of the system of market economy,our country’s industrial structure tends to more reasonable and new industries represented by science and technology enterprises obtain quite great progress.In this context,the importance of company managers’ability becomes even more dominant and the company must face and think about the loss of human resources.Concerning the trend of stockholders’heterogeneity and the importance of human capital,overseas scholars started to research the separation of voting weights and shareholding ratio.On that account,dual class equity structure emerged at a historic moment,which met financing needs and allowed the founders and their team to preserve the control of the company. Due to the effectively resistance of hostile acquisition and the promotion of the company’s long-team development and profit, the structure has been widely used in many countries and regions.However,under the background of the universally recognition and gradually improvement,our legislation of corporation is still stuck with the principle of Same Share with Same Right" and ignores the market demand of ownership structure,which suppresses the innovative space of market main body for corporate governance.How to solve the contradictions between the corporate control and equity financing and how to line with the international development trend of ownership structure in the wave of the domestic high-quality resources loss become a question we must consider about.Based on the study of dual-class shares structure and concerning about the current ownership structure in our country,the author fully demonstrates the necessity and feasibility of dual class equity structure in China and then puts forward the specific measures so that the diversity of market demand will be met and the competitiveness of enterprises and capital market in China can be promoted.