The Interests Of Minority Shareholders In Listed Companies In The Tender Offer Protection

The shareholders of Joint Stock Company are foundation of the company. In thesituation that the ownership of shareholders and the operation right of company are splitted bythe modern company law system, the protection of shareholders is the company law system'starget. The positive role has been proofed by many economists, but company acquisitions canalso bring a lot of destructive effects. The minority shareholders, duing to lacking ofinformation and expertise, are positioned inferior compared with the company managementadministration,supervision authorities and the controlling shareholders. Hence the latter iseasy to sacrifice the rights of the former in order to maximize their own interests. So it is quietnecessary to provide extra protection over the minority shareholders for maintaining thestability and prosperity of the security market.In this paper, I will introduce the practice and related theories prevailed in developedcountries, study the inferior position of minority holders and the reasons for that, and pointout the deficiency consisting in China's existent law. Finally we bring forward a proposal forhow to set up an integrated system to protect the rights of minority holders. It is my hope tobenefit the modification of involved law.