The Legal Regulating Of The Cross-shareholdings Of Listed Companies

The cross ownership among companies, indicate that two companies and abovehold opposite shares each other based on some purpose.The cross ownership is a double-edged sword. Against a hostile takeover,stabilizing company, promoting unit and so on, are its positive roles. While, it alsocauses empty capital, internal control, insider trading, stock market bubbles etc. For thatreason, foreign counties make laws to solve it. America allow cross ownership, Francelimit it and Japan restrict parent and subsidiary companies cross-shareholdings.At present, cross-shareholdings phenomenon exists generally in our country,especially in the listed companies. However,"Law of Corporation" and "Securities Law"don’t deal with this problem.In order to regulate this problem, the author proposed legislation suggestions withthe reality of our country and foreign legislative achievements.In Law of Corporation, parent and subsidiary companies and not are treateddifferently. In principle, cross-shareholdings between parent and subsidiary companiesare prohibited with some exceptions. The cross-shareholdings between the companieswhich are not parent and subsidiary companies, limit their voting rights in more than5%of shares.In Securities Law, in the cross-shareholdings between the companies which are notparent and subsidiary companies, the directors, supervisors and senior managementpersonnel of the excessive holdings party, have inform obligation, and shall not havevoting rights. Especially, the listed company has strict information disclosure obligationto cross-shareholdings.In Antimonopoly Law, the unlisted company cross-shareholdings more than5%,the listed company cross-shareholdings more than3%, constitute “special operatorsconcentration”. The cross-shareholdings need prior notification if it is up to standards.At the same time, the relevant supporting system construction ofcross-shareholdings should be attached importance. Improve the disregard of corporatepersonality system and the independent trustee system.