The Problem Of The Limited Company Of Our Country Medium And Small Shareholders’ Rights Protection

The Limited liability companies in China as an important part of marketeconomy, has an important influence to the entir social economy. How to guaranteethe benign operation of company limited by shares, guaranteed investment marketjustice, stability is the important task of company law. The important role of thecompany limited by shares, is can concentrate a large amount of capital in the shortestpossible time, complete the capital of company expand quickly. Minority shareholdersas a company limited by shares investment main body, compared with the controllingshareholders have the minority natural. If we do not pay attention to the protection ofsmall shareholders’ rights and interests, it will reduce the small shareholders’investment enthusiasm. Company is in need of long-term investment. If the majorityof small and medium shareholders had experience in speculation, rather than focusingon the company’s own development, the company is no good, and can cause thecompany bad because of their capital, then affect the normal development of company.Therefore, how to guarantee the legitimate rights and interests of small shareholders,promote the small and medium shareholders’ investment enthusiasm, both for themedium and small shareholders’ own personal interests, or to the whole interests ofthe society have great sense. Firstly this paper discusses the theoretical backgroundand practical reason on the protection of the small shareholders’ interests. Furtheranalysis the actual and our national legislation to protect the small shareholders status.Based on China’s ownership structure concentrated is actual, put forward our countryto improve the interests of small shareholders views. Specifically, one is to improvethe shareholder voting system, carrying out the network voting system. Two is toimprove the shareholder’s right to know, refine the inquiry right. Three is to improvethe system of independent directors. Four is to improve the system of derivative action. Five is to improve the controlling shareholders’ duty of good faith, and theestablishment of small and medium shareholders damage compensation mechanism ofcontrolling shareholders.