Study On Protecting The Rights Of Anonymous Shareholders

In China, with the development of the economy, the investors andcompany management participate in the company in diversity, and aspecial kind of shareholders, dormant shareholder, arises at the historicmoment. They actual perform the capital obligations to the company, buttheir name can’t be found on the Stock transfer books or businessregistration. with the economic globalization,the degree of marketliberalization is higher and higher, the phenomenon of dormantshareholders is increasing, and the type of dormant shareholders isdiversifying. This phenomenon is driven by the different interests andmotivations of dormant shareholders. Although dormant shareholdersobtained certain benefits under the umbrella of "silent shareholder," butthey are still often unable to get the legal qualification of "shareholder,"andcan not enjoy the legal rights of shareholders as a co. LTD. The existinglaw of dormant shareholders’ rights is not perfect. In order to protect theinterests of a third party in good faith and in order to ensure transactionsecurity, more standardized qualifications are necessary for shareholders.This thesis attempts to, in combination with real cases and analysis,research the main types of limited rights of dormant shareholders. Thisthesis hopes through referencing current principles and systems known intodays theory and practice to improve dormant shareholders currentinterests and lack of security.In this thesis, the overall structure is divided into threeparts:Introduction, Body and Conclusion. The body of the paper is used toask questions, and to analyze and solve problems. It includes the followingfive chapters: Chapter one, ask questions, beginning with the concept ofdormant shareholders. Real cases are also presented to analyze the maincategories of existing dormant shareholders. This further analyzes thedeep-seated reasons behind this phenomenon,and also explains therationalization of the goodwill of dormant shareholders. The secondchapter uses cases to guide the empirical analysis, and through the comparative study of Chinese and foreign countries, fully show therestricted condition of the dormant shareholders’rights in China. In thethird chapter, through listing and analyzing major shareholdersqualification standards, it is shown that a dormant shareholder’s rights cannot be effectively identified. Also, limitations of the current legalprovisions and the protection of transaction security from the commercialsector are also analyzed to illustrate the reasons for the restriction of therights of the dormant shareholder.How to remedy the rights of the dormant shareholder is the focus ofthis thesis. The fourth and fifth chapter covers theory and practice in orderto suggest advocacy. The fourth chapter is based on using theshareholders’qualification standards to suggest legal improvements. Aconsideration for specific legal relationships must be used along with theshareholders qualification standards. In the second section of the forthchapter,I try to suggest solutions according to the theory of balancinginterests. The fifth chapter suggests practical improvements, includingusing the trust system and introducing silent agreement notarization to trulyprotect the dormant shareholders’ equity.Dormant shareholders’ rights and interests protection has a long wayto go. This article is only from the perspective of the author. It analyzeproblems and puts forward suggestions in hopes of advocating for dormantshareholders’ interests. In order for real change and protection to occur,rigid regulation and legal policy needs to be adopted. This can ensure thatevery legitimate shareholders’rights and interests are protected.