Study On The Protection Of Preferred Stockholder’s Rights And Interests

Preferred stock has a long history in many foreign countries,The Britain started to use it in the 1840 s firstly,and it has been relatively developed. But in our country, the state council decided to carry out the 《Administration of the Pilot Preferred》 at the end of 2013.And the CSRC issued the《Regulation on the Pilot of Preferred Stock》to standard the preferred stock system in 2014,the first preferred stock also issued in November 2014.Although preferred stock entered the stage of operation in China only in less than two years, but preferred stock system shows its powerful vitality and vigor: after the bank took the lead in publishing the preferred stock, the other listed companies have also introduced a release plan.Now,in the New Third Board market, more and more companies issued of preferred stock.So, there two reasons of the rise of the preferred stock,perfection of legal system and the national policy support. It also reflects that the current market needs the investment financing mode in our country. Development of preferred stock is very important to construct and improve the multi-level capital market for our country.In the course of constructing the preferred stock, perfecting the protection of preferred shareholders is particularly important. For perfecting the protection of shareholders’ rights can dispel theInvestors’ scruple to the maximum and attract more and more people to choose preferred stock, making preferred stock system into a virtuous cycle. In order to avoid the problems which make people lose confidence to the preferred stock system, or even produce misunderstanding. But our laws and regulations to protect the preferred stock dividend is not enough and needs to be strengthened at present.In allusion to the problem of the protection for the priority of preferred stockholders, this paper points four chapters to introduce and analysis. Chapter one firstly introduced the related properties of preferred stock and the general development in domestic and preferred shareholders’ rights and limits, can make readers have a rough idea of the preferred stock and stockholders’ rights and pave the way for the following. Chapter Two reviews the conservation status and existing problems of the “Management Approaches” and other laws and regulations in preferred stock issuance, holding and withdrawal of each stage. It analyzes the current stated imperfections and unreasonable points, and points out the corresponding problems. In the issuance link, overly strict restrictions are not conducive to enhancing the mobility of preferred stock; in the holding stage, the rights given to the preferred shareholders are not sufficient; in the predetermined withdrawal mechanism, choices for the preferred shareholders are not many enough. Chapter Three analyzes the causes and significance of protecting the preferred shareholders’ rights, and three aspects are discussed such as the necessity, benefits and feasibility. This chapter mainly analyzes the benefits of preferred stock, which can not only reduce the risks undertaken by the preferred shareholders and balance the interests of shareholders, but also can fully realize the value of the preferred stock. Chapter Four is the focus of this paper,for solve the problems,firstly the ideas of protecting the preferred shareholders are analyzed, then the corresponding feasible countermeasures are put forward according to the above issues in Chapter Four, such as reducing limits for the listed companies issuing preferred stock, expanding the scope of shareholders’ rights for the preferred shareholders and improving the withdrawal mechanism, and conducting protection and improvement of the preferred shareholders’ rights in all aspects.