On The Protection Of Legitimate Rights And Interests Of The Medium And Small Stockholders In The Listed Company

It must be admitted that, there exists a certain number of articleswhich put on emphasize on the protection of the Medium and Smallshareholders. However, whether in the theory or in the practice, we stillhave lots of shortcomings in this field. We should continue to work harderto better make it.Especially with the deepening reform of the OwnershipStructure, compared to the simple traditional ways, violations of themajor shareholders in nowadays exist some more characteristics, which aremore complex. Based on these new problems, the improvement of theprotection of the Medium and Minor shareholders still remain to be animportant issues both in the theory and in the practice.The Major stockholders are holding a dominant position in the ListedCompany. On the contrary the Medium and Small stockholders are in the lowposition, their benefits are often exposed to the power of the controllingshareholders, and the Majority ones can momentarily infringe on theMinority ones by means of their decisions made from their own economicinterests and unfair bargain.As the unceasing development of our modernsociety, the economy and the social legal system, the protection of thedisadvantage ones is concerned increasingly by the society. In order tomake our capital market better developed, we need to take measures toprotect the legitimate rights and interests of the Medium and Smallshareholders. We should restrain the power of the Major shareholders andshorten the unbalance between the Major and the Minor. In order to providesufficient right and interest to the Medium and Small shareholders in theListed Company. This article mainly contains four parts:Firstly, describe the definitions of the listed company, the Medium and Minor shareholders, introduce the classification of the shareholders rights and interests, tell the significance of why we should protect them.Secondly, the paper expounds and analyzes the Major shareholders’ various kinds of violations, and further summarizes the new characteristics.Each of them are:“Conspiracy”、“Rounded”、“Complex”、“indirect”.On the third part, it mainly analyzes the reasons why the minorshareholders’ rights are easily infringed, which can be summarized into three reasons:First,the defection of the inside Corporate Goverance,eg.a)the irrational structure if the shareholders’equity,b) regulatory actions of the Board of Supervisors are not very effective,independent directors as well;Second,lacking of adequate regulations outside the Corporate Goverance,eg.a)lack of relevant legal system,b)Securities regulation is not rigid; At last, the shareholders’ own shortcomings.This paper puts a highlight on the last part, Which brings out the suggestions of further improving the rights and interests of the small shareholders, they are to improve both the inside and the outsideof the Corporation Goverance,which contains: Optimize the structureof the shareholders’equity;Improve shareholders’ meeting system; Cooperate the power between the board of supervisors and the independent directors; Strengthen the integrity of the Major shareholders, Strengthen the securities regulation, Establish the specialized agenciesfor protecting small shareholders, and so on. At last，through digging the deeper reasons,the writer proposed to establish the new culture which put a high respect to the Medium and Small Stockholders.