The Study Of The Legal System Of Non-listed Public Company Market

In our legal system, the concept of non-listed public companies is exotic, but there issoil and space for its existence and development in our country. As a special type of acompany limited by shares, the non-listed public company has the need of equitytransfer and financing. For the moment, our country’s regulatory body prefer to makethe new third board(a new over-the-counter （OTC） equity market) as centers forequity transfer of non-listed public company, however, in reality, besides the new thirdboard, there are many places which can provide the platform for non-listed publiccompany’s equity transfer including Property Rights Trading Center and EquityCustody Trading Center. Thus, the platform of equity transfer and financing of ourcountry’s non-listed public company is out of order. Meanwhile, there are a lot ofproblems in the equity transfer market of non-listed public company in our country suchas numerous illegal securities activities, unsound basic legal system, poor markettransparency, poor investor protection system and poor equity liquidity, which hinderedthe efficient and safe equity transfer of non-listed public company. On this basis, thelegal system of our country’s non-listed public company’s equity transfer market needsto be improved and perfected urgently so that our country can build a unified OTCequity market with non-listed public company equity transfer market as basis market.This paper consists of the following four parts.The first part is an overview of non-listed public company equity transfer market legalsystem. The author analyses the two concepts of the non-listed public company andnon-listed public company equity transfer market. The non-listed public companyequity transfer market has three functions and its relationship with the OTC market andthe new third board market is crossover and containing.The second part is introduction of the present situation and evaluation foreign matureOTC markets system. Due to foreign mature OTC markets develops early and haswell-designed system, this paper means to get some beneficial reference for China’sdevelopment of non-listed public company equity transfer market by introducing thesituation and evaluation of foreign mature OTC markets system.The third part is about the present situation and existing problems of our country’snon-listed public company equity transfer market. Our country’s Capital market is stillin its infancy stage, although our country’s regulatory body prefer to make the new third board as centers for equity transfer of non-listed public company, there are a lot ofsystem deficiencies in the equity transfer market of non-listed public company in ourcountry such as poor equity liquidity, absence of market maker system, lack of marketfunction mechanism, single legal document and low legislative levels etc.The fourth part is recommendations of the perfection of the non-listed public companyequity transfer market legal system. Against the existing problem of non-listed publiccompany equity transfer market, China should revise the non-listed public companyequity transfer market laws and regulations, design market-makers two-way competitiveprice mechanism scientifically, establish the connection between the non-listed publiccompany equity transfer market and market in the field and promote a unified companystyle OTC market. In this way, China can enrich and develop the non-listed publiccompany equity transfer legal theory and system practice, thus to build an unifiednational equity transfer market with non-listed public company equity transfer market asbasis market.