Research On Protection Of The Rights Of Minority Shareholders In Affiliated Enterprise

Compared with the traditional single companies, the affiliated enterprise is a newcorporate formal system which is not the artificial deliberate creation but the result oftraditional enterprises’ continuous development. In some ways, it broke the originalimagine of the company’s system designers,but these breakthroughs are in conformitywith contemporary development. Thus, the affiliated enterprises are increasinglypouring worldwide.One of the existing affiliated enterprises’questions in contemporary legal systemis minority-stockholders’equity protection controlled by the affiliated enterprises,which lies in two aspects: one is the majority-stockholders’squeezing and cheating byemptying the control company and transferring assets to dividend distribution throughthe related transaction. The other is that because the control company has theresponsibility of taking in charge of the affiliated com pany, the control company itselfbears the running risk which may not conform to the minority-stockholders’willing.So, the key to ensure the control company’minority-stockholders’equity is to givethem right to know and right to relief, the right to know is the basis of all rights, andthe right to relief is a sword to protect rights. At the beginning of the associatedenterprises to form, the affiliated enterprises contract system ensures that theminority-stockholders will catch a large quantaince of the potential risk during thefuture running and then freely decide whether follow the majority-stockholders to takethe running risk by their right of choice. During the enterprise operation, theminority-stockholders still can get a idea of how the company works through the reportsystem. If find the majority-stockholders squeeze or cheat,such as empty the controlcompany and transfer assets to dividend distribution, the minority-stockholders can askfor a relief by the derivative action and the action to compel distribution of dividend.Thus, the minority-stockholders’equity protection system in the affiliated enterprises isbasically improved.