On The Protection Of Minority Shareholders In A Management Buyout

This article begins with briefly introducing management buy-out (MBO), which includes the definition and characters of MBO, as well as the difference between MBO and other relevant concepts. After this, the article illustrates the theory base of MBO, compares and analyzes the motion and meaning of MBO in western economic systems and our country respectively. Very naturally, the article turns to the necessary for protecting the interests of minority shareholders. In this part, the article firstly depicts the importance for protecting minority shareholders, then, illuminates that during the course of MBO, it has the meaning of necessity and actuality for protecting minority shareholders. This article combines the characters and the specific legislative provisions of various countries, select several systems that can probably offer the best protection for minority shareholders. Then the article introduces the specific provisions concerning the above various systems and their differences among different countries, as well as during MBO, these relief systems have more meanings for the protection of minority shareholders.Through the above comparison and analysis and considering the problem regarding the lack of legal environment and related system as well as the weakness in protecting the minority shareholders, this article makes some suggestions in related to the perfection of our country's company law, and explain the contents of the suggestions.At the end, this article lists the various problems existed in current state-owned enterprises'MBO and gives its own opinions, also this article refers to the newly issued "the interim provisions concerning the transfer of state-owned title to the management"and points out its importance in perfecting the state-owned enterprises'MBO and further protecting the interests of minority shareholders and staff during the course of MBO.