On System Of Protecting The Interests Of Minor Shareholders During Corporate Division

Nowdays,it is becoming more and more competitive among enterprises under thebackground of economic globalization. To be more competitive, enterprises mustconstantly adjust business strategy. As a way of corporate restructuring, corporatedivision will greatly enhance the company’s operational efficiency if used properly.However, division of a company is not only the company’s own affairs, also related tothe company’s shareholders, employees, creditors and others. Among them, the minorshareholders as the company owner play an important role in the development of thecompany and the society, but their interests always be infringed by major shareholders,managers and intermediaries. Therefore, it is meanul in practice and in theory to protectthe interests of minor shareholders during corporate division. In other words, how tobalance the value of efficiency and the value of justice is a question that should bethought think and solved. Therefore,the essay will discuss the topic of how to protectminor shareholders during corporate division as follows.The preface proposes questions. Corporate division play a important role inimproving the company’s operational efficiency and competitiveness whilestrengthening the protection for minor shareholders is also a popular trend of manystates in the world. As to how to protect the profits of minor shareholders and balancethe value of efficiency and justice, the legislation of our country is not elaborate.The first part introduces the basic theory of corporate division,incloding theconception,the type and the efficacy of law. The author reachs following conclusionsthough the discussion of the conception,the type and the efficacy of corporatedivision:Any type of corporate division is closely linked with the interests ofshareholders. Meanwhile,it elaborates the function of corporate division in this chapterand concludes that the main function of corporate division is improving operationalefficiency and strengthening competitiveness.The second part mainly discusses the foundation of protecting minor share-holdersduring corporate division. In practice, the interests of minority shareholders always beinfringed by majority shareholders, managers and intermediaries.We must protect theprofits of majority shareholders because of their importantrole.In theory, theory ofshareholders’ equality,the theory of fiduciary duty and the theory of public choice all provides legal basises for the protection for minor shareholders.The third part focuses on analysising the rights of minor shareholders during theprocess of corporate division.First of all,the essay analysises information rights throughelaborating information disclosure of corporate division and right ofconsulting.Secondly, the essay discuss voting rights through analysising limitations onsharehonders’voting right and system of type of shareholders.It concludes thatlimitations on sharehonders’voting dose not meet the conditions of our country.Oncontray, system of type of shareholders is worth to learn to our country.Thirdly,theessay analysis appraisal rights of dissenters through elaborating the subject,the programand the price.The fourth part discusses how to perfect the legislation for protecting the interests ofminor shareholders during the process of corporate division. The general idea of thischapter is giving some legislative proposals on the basis of discussing existinglegislation.Corresponding to the third chapter,this chapter gives some legislativeproposals for information rights,voting rights and appraisal rights of dissenters on thebasis of learning foreign legislations.