Cross-shareholding Company Legal Regulation

World’s first company appear in Europe in the late15th century. Three hundred or four hundred years after of the creation of company system, shareholders of the company are limited to natural persons, company system’s main purpose is to raise funds by means of limited liability. Since1880United States New Jersey General company law firstly setted company can hold shares in other companies, company has entered a new era that legal persons gradually replaced natural persons as company’s most important shareholders. Company is no longer a purely independent single-company in the past, it closely associated with others through equity. Cross-ownership of company came into being. There is no denying that cross-ownership of company has played a very important role in promotting economic development and social prosperity, but its drawbacks are also increasingly exposed, especially during times of economic crisis. Some developed market economy countries and areas has established a system of cross-ownership of company for effective regulation. At present, China is in a period of transformation and change of the socialist market economy. Cross-ownership of company pour a strong power into China’s economic growth. At the same time, its drawbacks are also increasingly exposed. The paper uses both theoretical analysis and historical analysis, through the study of theoretical study of past scholars, especially discusses the part of the concept, types, advantages and disadvantages of cross-ownership, the author through the understanding of the scholars views and opinions, deepen the understanding of the phenomenon of cross-ownerships, and put forward my own opinion on the basis of previous studies. Comparison and transplantation is an important method of enactment of law, In our country there is no too much cross-ownership legislation experience situation, study on the interaction of foreign legislation, is a short cut across the implementation of legislation. This paper compares and analyzes the main developed countries and areas of cross-shareholding legislation, Combined with the reality of our country, puts forward legislative suggestions for China. The focus of the whole paper is divided into five parts.The first part discusses the significance, research background and the research status at home and abroad, summarizes previous research results, explains the purpose and research methods of the paper. The second part introduces the definition and classification of company cross-ownership, explains through comparative analysis and classification of the standard definition, classification, let us know the definition, the classification of the cross-ownership of company have a clear image. At the same time also states the advantages and disadvantages of cross-ownership of company. Cross-ownership of company is favorable to the stable operation of enterprises, improves enterprise’s operation efficiency, is advantageous to the enterprise internal financing and many other positive significance. However, It can also lead to inflated capital, caused the corporate governance structure of "the internal person control risk", damage the interests of small shareholders and a series of negative effects. Discusses the company cross-ownership legal regulation necessity.The third part is about the overseas company cross-ownership three different legal regulation pattern. Analysis to the United States as the representative of the liberal model, to Germany, Japan, Taiwan as the representative of the discrimination model, to France as the representative of the strictly limit model. Through demonstrates what they all have in common and difference of comparative analysis, meaning the company cross-ownership regulation mechanism, for the legislation of our country to find the best fit point in reference related system.The fourth part expounds the legislative history of the company cross-ownership, mainly divides into the new "company law" promulgated in2005before and after the two stages.The fifth part summarizes creatively put forward measures to perfect our country’s cross-shareholding of company legislation, which is the punchline.