Study Of Minority Shareholders Rights Protection System

The subprime lending crisis of the U.S.A is overspreading rapidly from finance region to economic entity; from U.S.A to the whole world. It has caused the economic decline In U.S.A,EU and many other marketing countries and it will influence the global economic deeply in the coming years. It can be predicted that after this crisis the global economic will survive, a new global economic system will come into being, just as the previous economic crisis. As a result many corporations have no other choice but reunion. The shareholder, unavoidably, will face the new interest allocation. Among them minority shareholders have attracted a lot of attention because of the particularity of their share. In fact, whether in the separate and reunion of corporation or in the daily managing activities how to protect their interest has been the focus of the corporation law. Out of all the rights Voting right is the most important one .So how to ensure the voting right of the minority shareholder is the fundamental thing.In my following article, I will start from the importance of the voting right of the minority shareholder, then I will discuss the possible legal problems about voting right that may appear in the economic activity, at last I will analyze and discuss Cumulative voting,Indirect voting and The Lawsuit System for Shareholders. The whole article is divided into four parts.In the first part, I summarize the function of voting right in protecting the interests of minority shareholder,analyze the reason why the minority shareholder's status lay behind,elaborate the action that the majority shareholder aggrieve the minority shareholder's right depending on their share advantage,analyze the importance of protecting the voting right of minority shareholder. And give my opinion about two traditional voting right ways (one share one vote rule and capital majority rule).In the second part I narrate the theory and legal example of the Cumulative voting. Then I elaborate in detail why and how the Cumulative voting can retrain the capital majority rule and protect the voting right of the minority shareholder. The third part is about the indirect voting. In this part I will analyze the proxy of voting rights,voting rights trust and voting right solicitation respectively.The last part is about The Lawsuit System for Shareholders. In this part I make a deep research about the origin and development of Lawsuit System for Shareholders. And analyze the two lawsuit ways (Direct Lawsuit and Representative Lawsuit) in detail.