Li And Others V. Jia De Company Of Jiang Su Province The Shareholders’ Right To Know

Since reform and opening to the outside,the economy has developed rapidly.Market entities are also advancing with the times,and absorbing advanced enterprisesystem and internal governance structure,and its organizational system are alsoinnovating. The company’s position in the market is also increasingly important.Shareholders as the main body of the market investors, their rights should be protectedby equality and justice, so as to safeguard the legitimate rights and interests ofinvestors, strengthen the confidence of investors, and promote the healthy developmentof the market. For the shareholders’ rights, rights to know are the fundamental right.And the degree of implementation the right direct affects its ability to achieve theinvested capital operation and risk control. Additionally, untrue business accounting,freely adjust profits, distortion of financial reports and other economic order problemsstill exists, which causes serious absence of business integrity. The dispute of theshareholders’ right to know has become one of the most active company litigationtypes in a court’s judicial practice. In this context, used a typical case as a startingpoint, combined with a number of similar cases, and analyzed comprehensively theproblem of the dispute of China’s current shareholders’ right to know have importantsignificance both in theory and practice. The dispute of shareholders’ right to knowmainly exists in three obvious aspects, which including the legitimacy of the purposeof the shareholders’ right exercise, the flaws of pre-procedural’s fulfill, and the scopeof the shareholders’ right to know. And these disputes not only exist between theparties, but also exist between the judges. It is because that China’s "Corporation Law"to relevant provisions of the shareholders’ right to know are too simple, and does notform a complete system, so that making the judge has not an unified and feasiblestandard in the stage of adapt to the law, and he can only determine the legitimate andreasonable scope by his own subject consciousness. Our modern enterprise system onthe legislation is still in initial stage, and judicial practice experience is also obviousinsufficient. So, at this stage, we should be fully draw lessons from the abundantforeign legislation and practical experience. With the current actual environment as thebasis, and the purpose of legislative as the oriented, we should supplement and perfectthe shareholders right to know and its matched rights. So shareholders, especiallyminority shareholders can learn the company’s management information promptly and accurately, and take reasonable measures under different circumstances. And finallythey can achieve effective control to the company.