Protection Of Minority Shareholders

The distinctive characteristic of modern corporation system is that the order of its rights and system is certered on capital. This characteristic requests the capital majority rule shall be implemented. The capital majority rule has a great significance to keeping the balance of interests among the shareholders. However, the application of this rule will inevitably lead to some interests conflicts between the larger shareholders and small shareholders. In the meantime, this rule provides the larger shareholders with a"legal"method of figuring for self-interests and doing harm to the interests of corporations and middle & small shareholders.At present, strengthening the protection of the rights and interests of middle & small shareholders has become a core in the legislation of corporation in the world. It is also become one of urgent problems to be sovled in our country. Therefore, it is necessary for us to review and analyze the present situation, the reasons of being invaded, legal principle and realistic meanings of the protecting the rights and interests of middle & small shareholders in our country.Combined with the spirits of the new Corporation Law of our country,drawing on the mature theory approach and judicial practice of foreign country, the article also analyzes the methods of perfecting the mechanism of protecting the rights and interests of middle & small shareholders while calling for improving the legal level of protecting the rights and interests of middle & small shareholders in our country.