The Pyramid Structure And The Interests Of Minority Shareholders

Private Enterprise is an important part of economy in China. More and more private enterprises became Listed companies. However, in these years, the case that the ultimate controlling shareholders aggrieved the interests of listed companies and minority shareholders often appeared. By contrasting these cases, we find that Private Listed Enterprises aggrieved the interests of listed company and minority shareholders in the way of Pyramid ownership structure. If things continue this way, the securities will slump because minority shareholders'enthusiasm will diminish and do not want to invest in securities market. So it is crucial to protect the interests of listed companies and minority shareholders for developing securities market and private listed companies.In Pyramid ownership structure, this thesis studies the expropriation of minority shareholders by the ultimate controllers of China's private listed corporations theoretically, and base on the data about China's private listed companies over 2008—2010 in A-share market. In order to measure the circumstances that ultimate controlling shareholders are more inclined to aggrieve the interests of minority shareholders, the paper develops empirical research to determine the relevant factors that affect the interests of minority shareholders.First, this paper review briefly china and foreign scholars'research results from the following five aspects:the concentrated ownership and controlling shareholders, definitions and characteristics of pyramid structure, the invade conductions of ultimate shareholders, the Interests providing conductions by ultimate shareholders and pyramid structure and company value. Second, the paper describe relevant concepts and theories Of the pyramid ownership structure, and casting light on the exterior conditions and interior reasons for pyramid ownership structure in private listed corporate. The paper analyze the possible approaches that the ultimate controlling shareholder can take, and search the practical evidences, and analyze the reasons of aggrieving Private Listed Company for ultimate controlling shareholder. Finally, the paper make assumptions based on the above analysis, in order to measure the damage degree that ultimate controlling shareholder can cause for small shareholders, and develops empirical research to determine the relevant factors that affect the interests of minority shareholders in private listed corporate pyramid. According to the paper' conclusion, the author puts forward proposals to protect the interests of minority shareholders.