On The Control Of The Company And Its Proper Exercise

Corporation control is an economic right deriving from a corporation's status as an independent legal entity. Since the present and future interests of stakeholders are affected by the commercial and financial decisions and actions of corporations, the interests of all parties involved must be protected by ensuring that corporate control is exercised legitimately. As a result, it is necessary for corporations, in this modern day and age, to establish a corporate governance structure, central to which is the implementation of a system of checks & balances and an independent supervisory mechanism to legitimately exercise the corporate control rights.By tracing the economic origin for the emergence of corporate control that the author thinks is the conflicts of interest and analyzing the interest driving phenomena of contest for the corporate control rights, this article gives a definition of corporate control.This article also provides an in-depth analysis on the legitimacy and the legitimate exercise of corporate control rights. This analysis is mainly consisted of the following three parts: first, as one of legitimate rights, the legitimacy of corporate control and interests deriving from it is self-evidential; second, the arrangement of corporate control rights should take the manpower capital and stakeholders into consideration; third, to ensure the legitimate exercise of corporate control rights, the author discusses how to understand the necessity and suggests methods of regulating and restricting controlling shareholders and management.Finally, based on fundamental legal theory relating to the legitimate exercise of corporate control rights, the author analyzes environments concerning the legitimate exercise of corporate control rights in China, and provides further reflection and offers some suggestions on how to improve corporate control in China.