Consummating The Law System Of The GEM Companies Executives’ Act Of Reducing Shareholding

According to the Wind information data, since November1,2010, thefirst batch of companies which are listed on GEM has lifted the ban oflimit sell shares, the GEM companies executives resigned and reduced theirshareholding frequently. This kind of phenomenon seemingly be legalfreedom, but further analysis of the motivation is obviously have moraljustice back, into this phenomenon behind many institutional holes.This paper, through an objective analysis of the reasons and weaknessof GEM listing company executives reduced their shareholdings in a largescale and a high speed and a brief introduction of advanced overseas growthenterprise market of legal system, from the internal management,guarantor for steering, multiple supervision and justiciability toregulate executives reducing their shareholdings of the legal regulations,in order to create a win-win situation for the GEM.This paper can mainly be divided into three chapters, the firstchapter basically introduced the legal situation of GEM listing companyexecutives’ reducing their shareholding of the listed companies. Then,analysis great harm of the phenomenon, thus further explores thephenomenon of roots institutional soil, these problems include the legalloopholes of the issuance examination system, the stock issuance pricing mechanism, the regulatory system, the listed company’s internalstructure and the justiciability mechanism.The second chapter is mainly about the GEM in the legal system ofexisting problems, introduces the advanced system of overseas growthenterprise market, including the issuance examination and verification,supervision, and listed the internal management and legal responsibilitysystem, such as issue registration system, Britain’s AIM market"lifelong" guarantor system and groups such as action mechanism, to learnthe essence of the GEM related laws in China for the improvement of thesystem of the reference.Chapter three is combined with the analysis of the first two chapters,gave suggestion of how to consummate our country’s GEM legal system toregulation executives reduced their shareholding. The advancedexperience of the advanced system of overseas growth enterprise market,and combining with the actual situation of the GEM in China respectively,from the issuance examination system, comprehensive regulatory system,the internal management structure and legal responsibility system, tryingto put an end to executives from the root of mass reduced theirshareholding phenomenon be chances of survival, to maintain the investorsinterests, safeguard the listed company and the promotion of sustainablegrowth, and the healthy and orderly development of GEM.