The Legal Protection Mechanism Of Investment Company Of The Interests Of Small Shareholders

Corporate Equity Investment (CEI), one of means of corporate capital management, is the result of contemporary social economy. It has played a great role in increasing social wealth and promoting development of social economy. Whereas it has also threatened benefits of interested parties and challenged traditional legal institutions at the same time. Consequently, the dissertation first analyses the fundamental theory of CEI to disclose different influences on interested parties by CEI, then finds out a new spot to balance benefits of interested parties, and at last puts out a constructive assumption to constitute CEI legal system of our country.Part Ⅰ. Fundamental theory of CEI, first, a definition of CEI its characteristics and forms are given from the legal point of view. Consequently, compared respectively with corporate merger, corporate separation, establishment of Branch Corporation, formation of subsidiaries, corporate purchase and other special corporate behaviors, the part further clarifies essential characters of CEI. At last, at the angle of economics, the part profoundly analyses economic functions of CEI to expound and prove the value if its existence and reasonableness.Part Ⅱ. Legal mechanism to protect benefits of small shareholders of the Investment Corporation CEI would bring lots of disadvantage to small shareholders of the Investment Corporation. For example, decreased solid capital by CEI might influence realization of rights of claim to distribute dividends and divide residual property. The control power market shrunk relatively by CEI would have avianized the right for small shareholders to assign shares in some respect. What’s more, during the course of corporate equity investment, corporate managers might do, as they want in the name of corporate body despite of small shareholders’ status as proprietors.Part Ⅲ. on the basis of the above analyses, the part sets up a legal mechanism to protect benefits of small shareholders of the investment corporation from three points of view:limitation of reciprocal share-holding, limitation to enforcement of share rights and general protection of small shareholders.It is necessary to clarify that the dissertation researches Corporate Equity Investment just in the field of corporation law in order to make up for deficiency of our country’s corporation law though CEI has challenge to traditional legal institutions not only in the field of corporation law.