Discussion On Introdution Of Preferred Stock

Preferred stock,which is prevailing in other countries but do not have any legislation in China nowadays, is selected as study case in this thesis.Not only the provision of the preferred stock is imperfect in China’s legislation,but preferrd stock hasn’t been noticed until recent years in the world of China’s law theory.The paper includes three sections as follows:In section one, the author describes the concepts,features,types and nature of preferred stock through law of cognition.By empirical approach,the thesis analyses the value of introducing the system of preferred stock thoroughly.How to fuse the preferred stock system with other systems in Corporation Law is reflected in the paper.In section two,through a judicial precedent, this thesis analyses the difficulties we will face while issuing the preferred stock and the necessity of overcoming them, centering optimizing of ownership structure.Also author elaborate the feasibility of issuing the preferred stock under the framework of our current legislation.Finally,as to improvement in legislation and the construction in practice of the preferred stock system,much thinking is given to it.Although the preferred stock system is mature in foreign legislation and practice,it cannot be simply copied when transplanted into China.China has different security market and legal environment from the west countries,so the establishment of preferred stock system must be balanced between the the legislature and company autonomy.Whether to make it into law or just leave in to the article of company when facing certain issues,it is not only concerned with legislative skills,but also a practical problem.