The Research Of The Equity Transfer By The Minority Shareholders In Bankruptcy Restructuring Of Listed Companies

Bankruptcy restructuring system is a great innovation under the newEnterprise Bankruptcy Law of China, which is especially fully appliedwith during the bankruptcy of listed companies. Although the currentEnterprise Bankruptcy Law has provided legal basis for theimplementation of the bankruptcy restructuring system, the currentEnterprise Bankruptcy Law as well as relevant judicial interpretationskeep silent on the specific regulation of the application and theimplementation of the bankruptcy restructuring system during thebankruptcy of listed companies since the current Enterprise BankruptcyLaw of China is still immature. In particular, the current EnterpriseBankruptcy Law does not emphasis enough on the protection of the rightsand interests of the vast minority shareholders of the listed companies.Therefore, there are lots of issues incurred in the practice of thebankruptcy restructuring of listed companies waiting to be clarified,which has constituted existing legal obstacles. The mechanism of equity transfer by the shareholders is an important piece of content of thebankruptcy restructuring of listed companies, and is also a significantpanel for the minority shareholders to participate in the restructuring andexercise their legal right. The plan of equity transfer plays a vital role inthe plan of restructuring as a whole. It is an important conditionimpacting the restructuring of listed companies whether the plan of equitytransfer can be smoothly accepted and effectively implemented.The paper takes the view of the protection of the minorityshareholders’ right, first makes a general introduction about the basicsituation of the adjustment of the investors’ equity during the bankruptcyrestructuring of listed companies under China’s current enterprisebankruptcy system and the significance of bringing in the equity transferby shareholders to the restructuring system based on empirical research,and agrees on the positive affection of implementation of mechanism ofequity transfer by shareholders in the bankruptcy restructuring of listedcompanies. The paper then further analysis and concludes the commoncharacteristics of the plan of equity transfer adopted in the bankruptcyrestructuring of listed companies in China from the perspectives of thereason, form and procedures of equity transfer and how the minorityshareholders exercise their legal rights, and explore the real demand andfunction of the procedure of the mechanism of equity transfer byshareholders in the bankruptcy restructuring of listed companies in China. Based on the foresaid research, the paper further analysis the basis for theequity transfer by shareholders both theoretically and in system, andnormative interpretation of the equity transfer by shareholders, andexplores the deeper reasons affecting the function of this mechanism,such as the legislation, express of rights of minority shareholders, theroles of the executive power and judicial power and the change of role oflocal government, and also proposes corresponding advice to the existingsystem. Equity transfer by the minority shareholders during thebankruptcy restructuring of listed companies is an emerging front-burnerissue in the practice of the current enterprise bankruptcy law. It makesgreat significant for the scientific delisting of listed companies and thesound development of the security market perfect relevant legislation andto realize the justice and normalization of the procedure.