Legal Issues’ Study Of Parent-Subsidiary Companies And Cross-Shareholding

With the continuous development of China’s market economy in the recent years,the company’s business model and management strategies have also changed. There isnot only more attention on the economic phenomenon of cross-shareholding, but alsomore theoretical works of research and analysis of cross-shareholding. All of thesehave made a useful exploration of the further development of cross-shareholding.Because of the complexes of the real economic activities and legal issues,parent-subsidiary cross-shareholding, as a special type of cross-shareholding, exists inChina’s corporate governance and equity investment,and contributes to thecompany’s development and economic efficiency. In order to provide some referenceof legislation, this thesis discusses the cross-shareholding between parent-subsidiarycompanies, a particular economic phenomenon, and references the legislativesituation at home and abroad, then explores the establishment and improvement ofChina’s parent-subsidiary cross-shareholding’s legal system. This thesis is structuredas follows:In part one: the writer describes the legal connotation and related theories ofparent-subsidiary companies and cross-shareholding, analyzes the legal basis ofparent-subsidiary cross-shareholding, and summarizes the advantages anddisadvantages of parent-subsidiary cross-shareholding.In part two: the thesis analyzes the different laws of parent-subsidiary cross-shareholding between different countries, such as Common-Law countries andCivil-Law countries and China’s Taiwan region. Then, the thesis evaluates thesignificance of legislation and provides a legal reference for the establishment andimprovement of the parent-subsidiary cross-shareholding in China.In part three: the thesis introduces the evolving process and present situation oflaws about parent-subsidiary cross-shareholding in China, and proposes the idea anddirection of improving China’s legal system of cross-shareholding betweenparent-subsidiary companies.