The Research Of Shareholders’ Auditing Right Of Limited Company

Shareholders of the limited company who want to maintain their own interests and the company’s rights must know the company’s operating status and grasp the company’s financial information. Only in this way, the shareholders are able to make correct choices and decisions. However, only the controlling shareholders, directors of the board and other senior managers know the information:other shareholders, especially the medium and small shareholders are difficult to grasp the financial information, so their rights and interests are often infringed. Therefore, to safeguard their own interests and strengthen the supervision and restriction of company operation behavior, the shareholders should have the right to audit. The Company Law which has been implemented since2006made clear that shareholders have the right to audit. This rule is certainly great news for the shareholders, especially the medium and the small shareholders, because the right to audit is the foundation of the realization of other rights and plays an important part in maintaining interests of shareholders. Besides happiness, we should also see the provision of the law is too abstract, lacking of operability. For example, the qualification cognizance of the shareholders isn’t precise enough; the auditing scope is too narrow; the auditing ways and steps aren’t clear; efficiency of suit procedure for ordinary is low and high cost. These problems have led to many kinds of controversy in the legal circle and different judgments of same cases. Therefore, this article discuss deeply on the system of shareholder’s right to audit on the basis of problems caused by related cases.Besides the preface and epilogue, this paper is divided into five parts.The first part introduces the concept and nature of shareholders right to audit. Clarifying the concept of the shareholder’s right to audit is theory support of auditing scope which is discussed later. The conformation of nature is conductive to further clear the purpose of auditing right and strengthen the protection of shareholders’ interests.The second part describes the special subject of shareholders’auditing right. Because Company Law only indicates that the conducting subject of auditing right is shareholders of limited company and no related provisions for special subjects, this part mainly discusses whether the special shareholders which consist of former shareholders, rear shareholders, shareholders in flaw contribution and shareholders after the company’s logout are eligible and can exercise the rights and conditions in what degree.The third part discusses the object scope of shareholder’s right to audit. This part carries on detail instructions concepts and formats of three kinds of accounting materials of the company which includes accounting report, accounting books and accounting vouchers. Then by analyzing the relationship among the there materials, this part illustrates the progressive and indivisible relation among them. For this reason, all the above materials must be included in the scope of auditing.The fourth part introduces the performance and right remedy of shareholders’ auditing right. From the operation level, this part mainly discusses auditing right’s conducing procedures, the determination of time and place, the allocation and procedure of burden of proof. Especially in the applicable program of litigation, by quoting and modifying special supervision procedures such as the order of payment, the writer uses it on the implement of auditing right. In other words, the order of auditing can be applied to auditing cases which satisfy some conditions.The fifth part discussed the improvement of shareholder’s right to audit system. Firstly, this part summarizes the deficiencies of Company Law that analyzed in previous parts. Then the writer put forwards some perfecting suggestions for these problems and deficiencies.