The Study On Legal Issues Of Cross-shareholding In China

Cross-shareholding company means that two or more companies for some special purposes to exchange one company shareholding to this companies. Because the cross-holdings has a huge advantage in the economy area, it is already admitted in many countries. The benefits of building the cross-holdings between companies are helping the establishment of corporate alliances to stabilize, and making the development of the economies of scale are favorable. The cross-shareholdings will help enterprises to establish long-term interests as the target, meanwhile, it will stable companies and prevent the company is taken by hostile. At the same time, the functions of the cross-shareholdings are also showing in company financial operations and helping the capital flow of the cross-holdings enterprise keeps running. The Cross-shareholding plays a significant role in promoting the optimization of industrial structure, it can help companies to withstand competitive pressure internationally. On this sides, the cross-shareholdings also has some drawbacks, such as causing inflated the company’s capital, the Company is easy to be controlled and easy to cause a monopoly. Because the cross-shareholding has two different sides of features, it is easy to judge the company’s cross-shareholdings, we cannot agree with it because of its positive, or deny it because of its negative. The best way is focused on the two sides of cross-shareholding companies, regulate them separately, and try to find a balance in the process.In China, in some ways the company cross-shareholdings accord with our corporate objective needs of the joint-stock revolution. Because the joint-stock company in our county, the shareholding structure of the company is relatively concentrated, mainly composed of national shares and legal person shares, and which will provide good conditions for the operation of the cross-shareholdings between companies.I am not only referring the issue of cross-shareholdings legislative model in this countries, but also compared the practical experience in this countries with the actual situation of China ’s economic development, and trying to solve the problem of cross-shareholdings legislation. The author already expresses his views about the selection of the company cross shareholdings legal system and the future, how to improve our company cross-shareholdings specific legal regime proposed. The following writing will discuss on the author’s opinions:The first part is analysis the problems of the cross-shareholdings company, research connotation of cross-shareholdings, to understand the development of cross-shareholdings and origin, and analyzes the reasons for cross-holdings generated good for the company to have cross-shareholdings certain macroeconomic understanding. Meanwhile research the status quo of cross-shareholding company, and accordance with China’s actual situation the author will give a view which she supports, the company is determined to treat the problem of cross-shareholdings basic position.The second part is mainly on cross-ownership of the company outside the legislative research, analysis and find out why the cross-shareholdings legislation is different in othis countries, and in accordance with the loose and strict restrictions discriminate three models will be divided national legislative systems, analysis for the legal regulation of cross-shareholding company established by the phenomenon of cross-shareholdings attitude and treat the company in othis countries, and how they can provide experience for our cross-shareholdings legislation building.The third part is analysis the existence problems of cross-holdings of company law and causes. Through analyzing the environmental basis of cross-shareholdings, and base on which problems of legal regulation of cross-shareholdings we exist and what the reasons of them have a in-depth discussion.The fourth part is according with the cross shareholding legislation, the author will give his own views and suggestions about how to improve cross-shareholdings legislation. In the first analysis of the feasibility of cross-shareholding company development should draw conclusions to support its development, and analyzes the company’s value orientation of cross-shareholdings, then analyzed on the choice of cross-shareholdings legislative model, and propose specific legislative proposal. Finally, to explore the consequences of illegal cross-shareholdings and perfect supporting system.