The Split Share Structure Reform Of The Public Shareholders To Protect The Legal Issues Research

The Separation of Equity Ownership and Trading Rights, referring to the segregation of shares of companies listed on the A-share market as non-tradable and tradable shares based on whether they can be listed and traded on the stock exchange, was a special phenomenon formed in the process of the economic systems transition in our country. Many abuses could be introduced by the separation of equity ownership and trading rights such as the distortions of the capital market price mechanism and the restrictions of the exertions of the capital market resource configuration function. And it badly prevented the capital market from growing steadily and healthily. Owing to appeals from the public and scholars, authorized by the State Council, China Securities Regulatory Commission issued "Relevant to Pilot Reform Projects Regarding the Separation of Equity Ownership and Trading Rights of Listed Companies Circular" on the 29th April 2005, which was expected to solve the stock market question left over by history through the marketization reform. However, there was an obviously strong-weak difference between the stable stock shareholders who were usually the large shareholders or the controlling shareholders and the public stock shareholders in the information acquisition and the general meeting of shareholders voting. On account of the possibility of the stable stock shareholders may use their dominant status to encroach upon the public stock shareholder's legitimate benefits, the system was planed to build up to protect the public stock shareholder's legitimate rights and interests.During more than ten years from "PRC Company Law" inured from 1993, the legal systems in protecting the rights for share holders had been partly formed and played the positive role in the shareholders' rights protection, in which "PRC Company Law" , "PRC Securities Law " was the core and other massive related laws and regulations was auxiliary. Otherwise the negative part in the reform was the imperfection of our country's shareholder's rights protection systems, specially the systems of the protection of the public stock shareholder's. A mature stock-market...