On The Shareholders' Right

The right to know of the shareholders is a basic right that our legislation givesshareholders. It is a legal means to protect the interests of small shareholders in moderncorporation management. Many modern enterprises adhere to the principle of separationof ownership and management in corporate governance, which causes the majority ofthe shareholders can’t directly participate in the company’s daily operations. However,the company’s management and decisions are mainly in the hands of company seniorexecutives. It can easily lead damage to the interests of small shareholders due to thelack of important business information. Although China’s company law clearly pointedout that the shareholders of the company shall have the right to know, but our legislationhasn’t yet made any detailed provisions on the specific scope, performing conditions andcontentious procedure about shareholders’ right to know, which causes the shareholder’sright to know is very difficult to be effectively protected in practice. Therefore, it seemsparticularly indispensable to carry on the thorough discussion about the shareholder’sright to know, and define the basic concept of the shareholders’ right to know, analyseits performing method, study the development and defect in our country’s system aboutthe shareholders’ right to know, then put forward a series of specific measures in orderto bring about effective protection to shareholder’s right to know.