Shareholders' Right To Know Case Study

Accessing to the necessary information of the company is the prerequisite for the shareholders want to exercise their rights,so it is very important for exercising shareholders rights by ensuring that they have full access company information.To this end,the Company law of various countries or regions have been given the rights to the shareholders to know the companies operating and the financial situation and so on,the new and old company law have set the system of shareholders' right to know in succession,but it is too abstract and without operational,and it is difficult to achieve the original intention in practice. This paper make a theory for the controversial focus in a typical case by using the method of comparative studies and comprehensive analysis,and Analysis the related issues of justice Difficult,then put forward some own views and opinions for improve the legislative and judicial protection on shareholders' rights to know.The text is divided into six parts.In the first part of the text that it is mainly introduced the cause of action and detailed case for a shareholders' rights to know,pointed out the focus of controversy in this case was whether the shareholders who haven't invest capital have the right to know and have the right of access to inspect the company's accounting books of the original documents.The second part is a summary of the shareholders the right to know,by the following three aspects to introduce the basis theory of shareholders' right to know.First is the concept of the shareholders' right to know,point out that the shareholders the right to know is the right to understand the company's operations and senior management's business activities through inspecting the company's financial report,books,and other related companies' decision-making,management,and asked the relevant questions which the law be given.Secondly,clearly identified the body the exercise of the shareholders' rights to know is a person who in their capacity as shareholders,but in the company practice the identity of shareholders is complex,so we should understand the concept of "shareholders" broadly.Then it is the scope of the exercise of the shareholders' right to know.Which is can be divided the broad and narrow sense,China's new company law belongs to broad sense.The third part is the study conclusions about shareholders who haven't invest capital whether have the right to know.Not to invest does not lose their shareholders eligible,but their right should be restricted,that is not to invest will lose themselves' benefits but will not lose the right of total usufruct,in the law, the shareholders' rights to know belongs to themselves' benefits,so shareholders who haven't invest capital have the right to know.The fourth part is the conclusion of the study whether shareholders have the right to check the company's original receipts of accounting books.From the two major to demonstrate the reasons of shareholders have the right to access.(1) Access to the original documents of accounting is better for shareholders' rights to come tree.(2) From the foreign legislation and judicial practice,the scope of shareholders to check accounting books are increasingly broad,this is the development trend of China's company law.The fifth part analysis and clarification some difficult issues in the judicial practice,such as it identify the defendant appeals is company,how to identify a reference standard to determine the "proper purpose" of shareholders to exercise the right's to know,identify the nature of the proceedings protection of the suit of shareholders' rights to know is the evidence preservation.In the sixth part,the author have been raised the concept about normalizing shareholders' rights to know,in the legislative,should be clear entitled the qualifications of shareholders' rights to know,should be expanded and clearly defined inspection scope and dearly subjective elements restrictions of shareholders' rights to know.In the judicial,should be known the pre-conditions appropriate for suit of shareholders' rights to know,controlling the scope of defendants strictly,shareholder litigation,applying the litigation protective measures correctly.