Holding Company Holding The Right To Regulate The Operation Of The Legal Issues

Holding operation is a highly efficient and economical way to run a business. However, it often exposures the problems like ill variation of corporate governance, vast increase of market speculation, impairment of the minor shareholders or other stakeholders and so forth when the holding company exert its rights over subsidiaries. This unbalanced benefit relationship of holding company cannot restore itself under the regulation of market mechanism. Furthermore, the traditional company law doesn't compatible for this new emerged holding management. So we need systematic legal rules to guide and control its function. This thesis firstly explores the cause of unbalanced benefit relationship among relevant subjects and then brings forward the goal and value tendency of rules on holding rights through the comprehensive use of economic analysis, comparative analysis, historical analysis and positive analysis. We also try to establish a framework for holding company's holding rights, regulating its engendering, exertion, balance and check to safeguard the benefit of minor shareholders and other relatively weaker stakeholders. In the ending part, we advance some legislative suggestions on this issue.