Study Of The Legal Issues Of Tracking Stock

Tracking stock could enhance the value of shareholders,and provide a more convenient and effective solution for the capital operation,thus acquired concerns from financial and legal scholars.This article,from a law view,concerns about the internal legal structure of the system and the challenge which brings to the traditional fiduciary duties of corporate governance,and gives a possible approach to the reference and integration of this tool in China's current legal system of financial.PartⅠof the article gives an introduction to tracking stock,including the conception and evolution process of this tool,then answers the question that why to implement a tracking stock culture in a company.From this part,readers can find development prospects and research significance of this tool.PartⅡdeals with the internal legal structure of this tool under American law,including voting rights,dividend rights,and liquidation rights,as well as issuance and implementation of this system,then makes an comparison between a traditional corporate and a tracking stock corporate in this aspect.From this part,readers can see the whole process of implementing a tracking stock culture in a company.PartⅢtries to analyze the challenge that tracking stock brings to the traditional fiduciary duties of corporate governance.Through research of the reasons lying in the challenge,the author tries to sort out the solutions that forwarded by legal scholars,and make a comprehensive analysis and comment on them,which will bring the readers with a deeper cognition and understanding about tracking stock.PartⅣfinally talk about the possibility of reference of this system in current China,the author wants to make an attempt to embed tracking stock in our legal system,based on the analysis of current legal documents.