Study On Legal Issues Of Institutional Investors Participating In Corporate Governance

The main purpose of corporate governance is to coordinate the relationship between shareholders and managers well, thus to protect the interests of investors. In practice, however, the effect of corporate governance in different countries is not satisfactory, cases that operators harm the interests of shareholders for their own private interests occur usually. Since the 1980s, the institutional investors gradually began to play an important role in corporate governance of the developed market countries. Since then, the institutional investors have changed their attitude about taking part in corporate governance from "voting with their feet" gradually into of "voting by hand", which led shareholder activism into rising. Along with the growing scale of institutional investors, obviously, it has become an inevitable trend of corporate governance in each country that they participate in corporate governance.In terms of our country, because our capital market is still not very mature, and the legal system is not perfect enough, so there are many obstacles which affect institutional investors taking an active part in corporate governance. Therefore, this paper, from the perspective of law, through the use of literature research method, statistical analysis method, case analysis method, theory and practice connected method, comparative analysis method, points out the legal problems and present situation of institutional investors participating in corporate governance in our country, and puts forward some targeted improving suggestion, hoping to be able to solve the current problem with which China’s institutional investors are being faced in participating in corporate governance. Specifically, it includes the following four parts:The first part:discuss the necessity, feasibility and theoretical foundation, paving the way for the following writing.The second part:put forward the first legal problem, that is how institutional investors take part in corporate governance, namely participation ways. Respectively discuss the legal ways in which they take part in corporate governance as the status of shareholder and creditor may use.The third part:analyze the present status of institutional investors taking part in corporate governance in China. Firstly, expound the current situation in China simply, next raise the problems of our country, then focus on the analysis of these problems.The fourth part:provide corresponding legal countermeasure which I think is practicable against the legal issues mentioned above, in order to better encourage the institutional investors to take part in corporate governance, which will make institutional investors play a better role in corporate governance.