The Research On Dual Class Structure Of The Listed Companies

Corporate law in some countries and regions will be "same shares same rights" as a basic rule applies, which is the typical characteristics of the economic rights and participation rights of shareholders firmly tied, it can not be separated, but with the capital market diversify investment demand, which no equity rule difference is clearly unable to meet the market practice, therefore, the traditional dual ownership system as the "same shares same rights" principle putt powerful person, is accompanied by the founding shareholders and management flowers and applause, to flex its muscles in the Capital Stock Market.By separating the control of dual ownership system and property rights, allowing the management team to meet the financing needs of the company at the same time,with minimal capital investment in exchange for control of the largest, which is a listed company’s management team are loved. Although this system from the face of the right management team to strengthen and weaken the rights of other investors,even if investors invest a lot of capital to get and share the same management team,the right to vote is meager, but the reason is still there so many investors are willing to spend a lot of money in exchange for the right to speak out of proportion, the most obvious reason is that they see this company to bring their huge property income,most people buy stocks just to make money only. Simply, it is a wish make a wish to suffer. Things have two sides, dual ownership system but also because the company’s stock price more volatile, insufficient corporate governance standards, more closed system than a single company’s shares or other reasons has been questioned by some scholars, the reality business management, some of these are the founders and management layer abuses in their hands, so that the implementation of some of the interests of small shareholders suffered damage behavior, such asymmetric configuration and equity interests at the beginning of the creation of a fair, just,balanced rights principles are very different. However, no system is absolutely perfect design, dual ownership system is the reason why in our country suffer exclusion because of the lack of existing inadequate protection of minority shareholders, and related systems, and therefore, a sound legal system in this is particularly important,can effectively double the negative impact of equity digestion system in some way.In recent years, promoting the diversification of the ownership structure of listed companies has become the consensus. " The same rights with shares " single mode of the existing "Company Law" failed to properly resolve the contradiction betweenexternal financing and internal control and, therefore, hindered group such as Alibaba Group’s innovative technology companies to visit the capital market. Thus, the same stock with the right to stick to the traditional system would stifle innovation and development of capital markets, with the gap between the market mechanism and the mechanism of getting smaller and smaller countries, the law does not hinder the way the market should move forward and become institutional innovation stumbling block,our company legislation should be done, on the one hand is to provide as rich as possible "standard contract" for the market players to choose to adapt, on the other hand is consistent with the basic principles of these laws establishing separate and specific socio-economic conditions and the behavior of border security mechanisms.