Research About The Protection Of Minority Shareholders’ Equity In The Current Ownership Structure

To protect the rights and interests of small and medium shareholders is the foundation of the development of Chinese securities market, and play the fundamental guarantee for the securities market to operat. At present, our country to be listed that the shareholder’s rights protection has faced many kinds of problems.The ownership structure of listed companies on our county’s capital market is a dual structure which is that the tradable shares and non-tradable shares co-existence. Individual shareholders and state-holding in a dominant position is a very common phenomenon, non-tradable shares tend to dominate. The high concentration and dominance of non-tradable shares leads to serious internal control and the occupation of the rights and interests of minority shareholders, cause serious damage to the principle of fairness, and hinder the development of our county’s capital market.Chapters II and III, the first part, first to define the relevant concepts, and described in detail for the concept of private benefits of control over, combined with the current situation in our county, author definit the relevant concepts. Subsequently, we elaborate several major theories on the protection of investors.In Chapter III, we research the protection of minority shareholders in current situation.The fourth chapter, which is the part of the empirical research, is the core content of this article. I analyze the relationship between ownership structure and the interests of minority shareholders protection. After the empirical research by the data of three years from2009to2011, we come to the impacts of the proportion of the largest. shareholder (ownership concentration), equity balance degree, and the proportion of outstanding shares to the Private Benefits of Control.At last, we concluded that interests of minority shareholders affected by many factors in our county’s stock market. The higher ownership concentration is, the greater damage to the minority shareholders interests, while the equity balance degree and proportion of outstanding shares had no significant effect to the protection of minority shareholders.The last Chapter is part of the policy recommendations. On the basis of the conclusions in the second part, we make recommendations to the construction of the external environment for our county’s securities market,and improvement of the internal governance structure of listed companies.