Study On Legal Protection Of The Small And Medium Shareholders’ Right To Know In Limited Liability Company

In the modern corporate governance mode, often there are a lot of company’sshareholders don’t participate in the management of the company, ownership and managementrights are usually in a state of relative separation. It’s easy to cause the internal informationasymmetry phenomenon. The company’s operating management holds the managementright, they have a information advantage within the company, but the small and mediumshareholders in the company are in a weak position of asymmetric information, This leads totheir right to know difficult to get due protection, Therefore, right violations tend to happen tosmall and medium shareholders.The shareholders’ right to know is one of the most basicrights, only through the exercise of the right to hold the company’s relevant information canshareholders truly protect their investment interests on the company, This means that， Theexercise of shareholders’ right to know is to achieve the premise of other rights, Ifshareholders cannot effectively achieve the company’s right to know, other legitimate rightsand interests of the shareholders are that much more difficult to achieve.Now many countries have established perfect system of shareholder’s right to know inthe legislation, attempting to better safeguard the legal right to know of shareholders. For ourcountry’s company law, the provisions of the shareholders’ right to know are in the constantprogress, but there are still many deficiencies in the legislation, Such as the provisions of lawfor the exercising conditions and procedures of shareholders’ right to know have difficultproblems in practice. Shareholder’s right to know is difficult to get practical guarantee andimplementation, so small and medium shareholders generally are the biggest victims in theright infringement. If the small and medium shareholders want to achieve and maintain theirright to know, to safeguard the legitimate rights and interests of them to the company, firstwill depend on the law that one of the most reliable method. Therefore, to protect thecompany’s small and medium shareholders’ right to know, the first thing is to recognize thedefects and disadvantages of existing laws in our country, and then make correspondingimprovement on the legislation to provide reliable legal guarantee for the realization ofshareholders’ right to know.This article obtains from the basic concept and contents of theshareholders’ right to know, puts the Limited Liability Company of our country as the basicvisual angle, proposed by the analysis of the current legal system of the shareholders’ right toknow in our country, to put forward improvement suggestions on the system of the Limited Liability Company shareholder’s right to know in our country. Expect to play a positive roleon the improvement of the related legal system of our country through the discussion of thelegal improvement on shareholder’s right to know.Besides preface and conclusion, this paper will be divided into three parts:In the first part of the article, after proposing that the shareholders’ right to know is thebasic concept, the author makes a properly account of the specific meaning and content ofshareholders’ right to know. And on this basis analyzes the significance of shareholder’s rightto know to small and medium shareholders, putting the particularity of the Limited LiabilityCompany as the most important reason of why small and medium shareholders’ right to knowis more vulnerable to abuse, this is in order to prove the necessity of protecting the small andmedium shareholders’ right to know. The first part of the content as basic theory is the wholecontent.In the second part of the article, the author analyzes the relevant laws and regulations ofthe Limited Liability Company shareholders’ right to know, and puts the related law articlesas appropriate complementary and citation. Observing the exercise of shareholders’ right toknow in practice at the present stage in our country, we can find Limited Liability Companyof small and medium shareholders’ right to know is hard to be realized in practice in ourcountry, here, the author lists out the specific performance of how the Limited LiabilityCompany of small and medium shareholders’ right to know is violated. On the basis of theabove, the author makes an in-depth thinking of the deficiencies and defects of the system ofLimited Liability Company shareholders’ right to know in our country. The content ofunderstanding our country’s current system corresponds to the perfecting suggestions for theimprovement of the system of Limited Liability Company’s right to know which the authorhas put forward in this paper.In the third part of the article, the main content is about how to improve our country’slegislative system of Limited Liability Company shareholder’s right to know. In this part, theauthor has made an in-depth thinking of the system of Limited Liability Companyshareholder’s right to know in our country, and this thinking process is also accompanied byreferring to the related system abroad. After fully understanding of the system of shareholder’sright to know of our country, the author has put forward relevant legislative Suggestions onhow to improve our country’s legislative system of Limited Liability Company shareholder’sright to know. We must give full consideration to China’s national conditions while drawing lessons from foreign legislative experience and try to ensure that suggestions for our country’slegislation conform to the Limited Liability Company’s specific conditions and characteristics,to make positive contribution to the improvement of legislation of our country.