On Preferred Shares Of Legal Protection

Article 132 in newly promulgated company law stipulate: The State Council may formulate separate regulations for the issue by companies of shares of types other than those provided for in this Law. It becomes a legislation foundation of issuing preferred stock. After the implement of this law,the article about different stocks will definitely be put into practice.Then, the relationship between these shareholders should be governed by company law. If the preferred stock does exit in company displine ,with the rights of shareholders obscure and underprotected, the enthusiasm of investors should be deducted, resultting in difficulty in coporate refinancement. Thus, a study on rights of preferred shareholders,relationships between different stockholders and protection of rights of preferred shareholders turns to be significant in a pratical sense. .Therefore, the paper chooses the preferred stock as a study object,which has became popular in company displines of other countries,but still not been stipulated in our company law yet. The paper provides some legislated suggestions in details, through analyzing the interests conflicts of different shareholders and the problem of preferred stockholder's right protection, and studying on other countries relevant legislation and significance of referenceThe paper consists of four parts altogether. In the first part , the paper gives a comprehensive introduction of preferred stock's definition, features and other fundamental aspects.On the basis of this, it indicates the interests conflicts between preferred stockholders and common stockholders and analyses the reasons. In the third part of this paper , through introducing and analyzing the legal problem preferred stockholders encountered abroad, points out the problem of preferred stockholder facing in pratice, then put forward some relevant solution after consulting with foreign legislation. In the end ,on the basis of a comparative study on relevant legislations andcase laws in other countries, the author concludes that our company law should be futher perfected with providing some concrete legislative proposals to protect rights of preferred shareholders.