Cross-shareholding System

Along with economics vigorous development of the world, companies grasp the overwhelming majority society resources and become the core organization of the various countries' economy day by day. The modern company's expands in social life force not only benefits from unceasing accumulation of the company's capital of its own, what's more is the accumulation of capital which sucked through the capital market. In this process, it is the company cross-ownership that to play the very major role.Cross-ownership is companies to own the stock of the opposite party in certain proportion mutually for a realized specific goal, and forms the phenomenon which holds the stock mutually between the enterprise legal people. The phenomenon is one kind of management strategy between companies and the important way which the enterprise unifies. It manifests the diversification and the complication tendency in the rapid economical development today. According to whether has the stock-hold relation between the cross-ownership company , may differentiate for vertical (longitudinal) cross-ownership and the level -like (crosswise) cross-ownership basically. According to the direction of cross-ownership and the union enterprise's quantity, may differentiate for five kind of basic shapes, that is, pure cross-ownership, the straight line cross-ownership, the ring-like cross-ownership, the lattice cross-ownership and the emission cross-ownership.Cross-ownership have two different effects pro and con. On the one. hand, we can not let it be because of the merit of holds alternately, on the other hand ,we also can not gives up eating for fear of choking or overall forbids because that it's many malpractices. The correct procedure should to seek for the pattern which both can suppress in the certain degree holds alternately and to be able to display its positive superiority.The company law of various countries has made the different form reflection based on the country's concrete national condition. The common law country which take England and American as representative respect the principle of company autonomous, because of its good legal framework, the counter-monopoly legal framework, auxiliary practices by the rich case-law ,the company the independent trustee system, the legal person personality denial system, the trustee to company's loyal duty and the assiduous voluntary system, center the young shareholder Uygur power representative lawsuit system and so on, the cross-ownership is not very hard. So the common law countries have not make direct or the indirect prohibition stipulation to cross-ownership in the company law generally. However, the majority...