On The New "company Law" Protection Of Shareholders' Right To Know

In modern corporate governance structure, shareholder's right to learn the truth isthe important right of shareholders, and is the premise on which other rights ofshareholders can be exercised and enjoyed. How the shareholders exercise this right isnot only directly related to the fulfillment of shareholders' interests, but also closelyrelated to whether the company can operate normally. Majority of the shareholders areusually in a weak position of information, which is a threat to the protection ofshareholders. The shareholders can exercise their rights effectively only when theyhave objective and complete understanding of the operation condition of the company.Thus, it is the tendency throughout the world to confirm and strengthen the protectionof the shareholder's right to learn the truth, which includes the right of consulting theaccounts, the right of consulting the books, inspector choosing system and right toinquiry.There are general regulations about shareholder's right to learn the truth inalmost every country's company law, including the company law of our company. Theold company law only regulated in general, which led to the infringement and evendeprivation of shareholder's right to learn the truth, therefore, disputes onshareholder's right to learn the truth have mushroomed. The new company law ismore specific and particular, such as the expansion of the sphere of shareholder's rightto learn the truth and the restriction of due purpose, but there are still some defects.Combing the new company law and comparing with the advanced experiences offoreign countries, this paper advise how to improve the relevant laws, such as theright of consulting original documents and inspector choosing system.