Research On The Relief Of Hierarchy Theory Of Shareholder's Withdrawal Mechanis-Under The Deadlock Of Limited Liability Company

The corporate control market is a market in which different management team competing for administration authority of corporations. The administration is fulfilled by collecting the dominating equity or voting attorneyship. In developed capitalist countries, it is seen as a classical theory. People believed that the corporate control market can help to improve the operation of corporation, efficiency of resources allocation and utilization of capital. It is the basic theory of perfecting the dominating structure of corporation and protecting the interest of minority shareholders.The corporate control market theory has been the foundation of share-reform in China, whatever constant dispersing structure of equity or circulation all over the world. According to foreign advanced theory, the control market can divided into internal control market and external control market. Internal control market includes competition of company managers, board of directors'domination function and shareholders'supervision. And External mechanism is in charge of purchasing offer and fierce competition of equity. The usage of corporate control market can finished by board of directors representing internal control market or external control market be represented by purchasing equity. External control market is particularly important, especially under the circumstances of equity is highly dispersed and insiders control the situation. Shareholders can stopped it by voting. Although external control market is effective controlling insiders, the supervision of internal control market is irreplaceable. Since our introducing control market to our country to guide our operation and reform, it did not act as it does in the theory but out of order. Internal control market's failure is shown in two aspects:Firstly, insiders'control. Secondly, alienation of big shareholders'supervision. External control market's failure is as following:Firstly, external control market fails to trigger merge. Secondly, it fails to improve the performance of company. Based on the classified analysis of the corporate control market, I think the main reason of internal control market's failure is that the invalidation of mainstream governance theory and non-equity balance of company structure. And root cause of external control market's failure is highly centralized equity and anti-purchase, and mix merge and multi-management. Through the corresponding research, I started with the failure situation of corporate control market, and made deep analysis its reasons and did some research and reflection of the exotic theory. Is this theory has no applicable soil? Do we have perfect factors for it? After deeply research, I think the theory achieving good effects in highly dispersed equity structure is depending on the special equity structure and good securities market of western capitalist country. In the progress of reform of cencentration in equity, we constantly strengthen dispersion of equity. Meanwhile, people realized that highly despersed equity also faces many problems. Therefore, we should build comparatively concentrated structure which has controlling shareholders and counterbalance of them Aiming at the failure of market for corporate control, I pointed out that we need to deepen the reform of equity structure and. Besides, we need to enhance minor shareholders'power of supervision, implementation accumulative total voting system, perfecting the information disclosure system etc.Then we can make the theory of control market actually play its role purpose in our county.