The Theory Of Preferred Shareholders’ Rights Protection

Preferred stock is different from common stock, needing to be formulated separately by the law.Preferred shareholders’rights to participate in the company management and making decision are restricted, but they could request distribution of benefits and surplus property earlier than common stock.Preferred stock is a kind of international common type. It has especially mature development in the western developed countries.It is always the focus of the preferred stock system research how to better safeguard the rights of the preferred shareholders.lt is late to begin to study preferred stock system in China,so the research content is not profound.The legal norms is not complete, therefore in the process of implementation of preferred shares in China. We should not only face such a fact that Preferred shareholders are in a vulnerable disadvantage Basing on characteristics of themselves,but be hit by The current imperfect legal norms which stipulate preferred stock system in the process of implementation of preferred shares in China.Our Company Law do not clearly stipulate how to implement the preferred stock now.The State Council may stipulate other types of shares which company issue which except of the provisions of this law, shall be separately prescribed company in article 131 the law.2013 years later,our country has launched The guidance of the pilot implementation of preferred shares under The State Council,The measures of preferred stock pilot management,making legal system of preferred shares form a primary scale in our city,laying the legal basis for protection of preferred shareholders.But at the same time,And we must face the existing incomplete legal system of preferred stock,and it is not perfect to protect the rights of preferred shareholders.The article is divided into four parts.The first part introduces the theoretical foundation for protecting the preferred shareholders’rights,From the basic connotation of preferred stock,understand the concept of preferred stock, type, nature and value.The second part analysis system of the developed countries’preferred stock comprehending the emphasis of the two major legal systems of preferred shareholders’rights protection.The third part introduces protection system of preferred shareholders interests in our country,expounded the present situation of our legal system of preferred stock,and the problems which how to protect preferred shareholders interests in practice and theory.After learning foreign mature system of preferred stock,the fourth part puts forward to an idea which perfect our preferred shareholders interests protection system on the basis of Chinese national conditions.It will be not comprehensive to formulate relevant legal norms in the preliminary stage of preferred shares system.The guidance of the pilot implementation of preferred shares under The State Council and The measures of preferred stock pilot management as the important legal norms which govern preferred stock market has issued.lt is show the demand because of fast development of preferred stock market, and preferred stock becomes more widely accepted.Therefore, China should draw lessons from outside mature legislation and judicial practice,carefully thinking about the legal system of preferred stock.and completing the system of preferred shareholders rights protection in China.