Study Of The Mutual Holding Company's Legal Issues

The topic of my paper is legal issues of cross-shareholding, which is very prevalent among listed companies in China, shown from the relevant statistics. Cross-shareholding is such a phenomenon as can be defined in this way. Company A occupy a certain percentage of shares of company B, at the same time, company B has some shares of company A, which was initiated from Japan in order to defense the invasion of foreign capital after Word War II .In the Chapter One, I have made some general introduction about the definition and legal characteristics of cross-shareholding, which has established the basis and assumption for next chapters. The methodology of how to regulate this commercial activity in foreign countries and the development of such phenomenon in Japan, which share some similarity with China especially in economic model and culture, are demonstrated respectively in Chapter Two and Chapter Three.As we know, across-shareholding brings both benefits and negative influence to the normal economy and market economy. The purpose and objective of my paper is to give some legislative proposal to maximize the benefits and minimize the harm brought by cross-shareholding. Consequently, it is essential and fundamental to analyze both advantages and disadvantages respectively, from different perspectives, including industrial organization perspective, corporate governance perspective, corporate capital and security exchange market perspectives combined with statistics and some positive study. Only in this way can I raise some convincing arguments and proposal.In the last chapter, I give some proposals as to how to maximize the benefits and minimize the negative impact, both brought by cross-shareholding in China.