Shares Of A Private Company Limited By Shares Trading And Corporate Governance

Unlisted companies are the source of transmission of listed companies. So, the qualityof the unlisted companies determine the pros and cons of the listed companies and thesustained and healthy development of the multi-level capital market. Good stock tradingenvironment and a sound system of corporate governance of unlisted companies are theirhealthy survival and development of two important factors. But now, Chinese companylaw and the security act have not made special provisions to unlisted companies’ stocktrading market、trading and corporation governance. This provides an opportunity forillegal securities to disrupt the normal development of the capital market. This study isfrom the classification of the unlisted companies,then begins to explore unlisted publiccompanies and non-public limited companies’ stock trading and its regulations.This paper concerns about the main location and types of reach of unlisted companies,unlisted public companies’ stock trading, non-public limited companies’ stock trading, thegovernance of unlisted public companies and non-public limited companies. It’s about35,000words or so.The first chapter gives that the OTC market refers to the stock market of unlistedcompanies. Unlisted companies’ stock market is in the low-end market in the multi-levelcapital market. Unlisted companies can be divided into unlisted public companies andnon-public limited companies.In chapter two, the “Securities Act” Article39“other securities exchange marketshall be approved by the State Council” is conscientiously interpreted. In order to solvethe problem of exchange of the unlisted public companies, we can rely on division、capital reduction, merge shareholders,relying on the agency share transfer system to buildthe unlisted public companies’ stock trading venues, and other measures.The third chapter points out the currently legal existing non-public limited companies’stock exchange markets: local assets and equity exchange、 Tianjin property rightsexchange、“new three board”. The author then analyzes three similarities and differencesbetween them. In stock trading, local assets and equity exchange adopts tradingsystem,Tianjin property rights exchange adopts a market maker-based hybrid tradingsystem,“the new board” take the consultation paired.The fourth chapter discusses the need for regulation of unlisted public company,putsforward regulatory body for non-listed public company. We can rely on informationdisclosure,intermediary service organization,the norms of unlisted public companygovernance practices to regulate them.In chapter five,non-public limited companies are regulated by the local government,Tianjin property rights exchange’s self-regulation by Tianjin government,self-regulation ofthe Securities Association of China under the auspices of Zhongguancun Science Park.