Listed Company To Withdraw The Protection Of The Interests Of Minority Shareholders

December19,1990, marks the opening of the Shanghai Stock Exchange the centralized trading securities market in China to establish. After20years of development, China’s stock market has reached more than two thousand, and is still a faster rate of increase, the establishment of the centralized securities exchange market to ease the difficulties of corporate finance to promote China’s economic development has made tremendous contribution. Survival of the fittest for the realization of the securities market and optimize the allocation of resources and other functions, some do not meet the criteria for listing or illegal privatization of the company resulting from the delisting to become an unavoidable problem. Medium and small investors at this stage is the main body of China’s securities market participation, although a large number, but the number of funds, information channels, investment techniques in a relatively weak compared with the controlling shareholder of listed companies are unable to participate in the day-to-day management of the company, resulting in the interests of medium and small investors often can not be defended, which is particularly evident in the delisting of the company.China’s existing laws and regulations on the protection of minority shareholders’interests in the enterprise delisting provisions is far from perfect. SFC introduced the "guidance" to terminate the listing of the follow-up work on doing Co., Ltd. in2004, the implementation of provisions not in accordance with the law faithfully perform their duties, and non-compliance with the protection of the legitimate rights and interests of shareholders obligation delisting directors of the Company and its executives Shichangjinru the system of registration, but does not require the company to withdraw (in particular, take the initiative to withdraw from the market) shareholders or executives compensation mechanism for investors, as well as due to fraud the Listing Back City or significant illegal delisting of minority shareholders compensation mechanism, these are urgently needed to safeguard the healthy development of the securities market laws and policies.China’s listed companies to withdraw from the market, mostly due to mismanagement of the company, malicious emptied listed companies or the occurrence of any major irregularity or even listing is sick listed due to withdraw from the market due to our lack of small investors suffered heavy losses after the delistingcompensation mechanism, often for a refund, the lack of punishment mechanism and protection of minority shareholders of listed companies, this will increase the fear of small and medium investors to withdraw from the market is not conducive to the healthy functioning of the securities market. Therefore, at this stage, to promote economic development and promote the healthy development of the securities market has a special significance to strengthen the protection of the interests of minority shareholders of listed companies delisting.I believe that is illegal or fraudulent result in the delisting of listed companies delisting, the underwriters of its major shareholder or sponsor deal with the loss of small and medium investors jointly and severally liable to the sponsor only recommendation can not be maintained, the largest shareholder of maliciousemptied violations listed companies. In particular, the major shareholder and sponsor of the sick-listed set up not only the exclusion regime should be punished even allowed to criminal liability. Its can be summarized in two points:First, improve the accountability mechanisms; investors Compensation System.