The Investor Equity Research In China’s Listed Companies In Reorganization Proceedings

Once listed companies cease to exist due to bankruptcy, above all relying on thecompany’s interests will also disappear, while reforming gave a narrow window ofopportunity to make the interests of all stakeholders to obtain compensation. Listedcompanies, however, re-engineering involves many interested parties, includingcreditors listed companies (the debtor), investors, employees, etc., differentstakeholders will have different interests advocated, including processing of investorinterest in the restructuring of listed companies essential.Investors of listed companies in order to maximize the preservation of their owninterests, will do everything possible to actively promote to build corporaterestructuring, and the formulation and implementation of the restructuring plan alsocan not do without the support of the investor, then in addition to the inherent investorshareholder the right to know, there is a need to give the company invested a certainre-engineering the right to participate, such as re-engineering the right to apply for theright to vote on the draft reorganization plan, the implementation of the restructuringplan to supervise. Which listed companies in the investor’s right to know the other theright to exercise the premise, and re-apply and voting is the most important rights ofparticipation in the company investor, to supervise is conducive to promoting theimplementation of the restructuring plan. In addition, to establish an equity returnconfirmation process, the relaxation of the restrictions to the exercise of the right toapply for re-engineering of the investor, the investor given more than10%of theshareholding restructuring plan to make the right supplement the investor group tovote standard rich investor informed channels should also be included in legislationunder consideration.In view of reforming the listed companies have been in a state of insolvency orinsolvent, is no longer a normal operation, the interests of the investors in the reorganization of listed companies should have the necessary restrictions, dividenddistribution of rights to be absolute prohibited; company directors, supervisors andexecutives risk aversion and shaken "morale" in order to prevent these special identityof the investors (both for directors, supervisors and executives, and equity transferrights for the investor) should in principle prohibition on exceptions allow; shouldalso limit the right to pay by installments funded investor; out to avoid investor forrestructuring the purpose of improper control may investors of listed companies, thecompany’s management rights also need to be restricted. The legal system design, it isrecommended to prevent listed companies abuse the right to apply for rationalization,clear mandatory standard for approval of a reorganization plan to relax the conditionslisted companies to restructure the issuance of new shares, the establishment of thesystem of public hearings.