Study On The Coexistence Relationship Between Large Shareholders And Medium And Small Shareholders

With the improvement of a company’s management theories and practices, contradictions between shareholders and managers are no longer the top issue that a company faces. Compared with some foreign countries, share options structures of Chinese listed companies are relatively more concreted due to its special state conditions, which are more powerful. Among all the listed companies,the major, medium and minority shareholders can reach their own rights according to the percentage of their stocks, that is to say, shareholders with a high stock percentage are certainly in charge of the company, on the contrary, disadvantaged and passive. Once the major shareholders are granted with the share options, they will impeach the medium and minority shareholders. According to recent research achievements, most scholars focus on the tunnel excavation method that major shareholders impose on medium and minority shareholders to gain more profits, however, other scholars believe that major shareholders, to some extent, support a company through gaining profits from listed companies.This paper analyses the relationships between the major shareholders and medium and minority shareholders on the basis of coexistence theory, that is, major shareholders and medium and minority shareholders are coexisted in essence, however, the coexistence model may range according to the circumstances and conditions. Behaviors such as impeachment of profits and support of listed companies of the major shareholders are only two coexistence methods. Coexistence methods include several parts, it is obviously that in listed companies, the coexistence profits will increase if major shareholders and medium and minority shareholders go on in a profit coordination model, on the contrary, the coexistence profits will decrease and the whole value of a company will decrease as well if they compete for profits.Therefore, bettering the relationships between major shareholders and medium and minority shareholders to make them go on in a coexistence model of profit coordination can help the improvement of listed companies and act a key role in developing China’s capital market better. To settle the problems between shareholders, conflicts of profits between them should be put at the top priority. In this paper, Analysis of the manifestations and causes of conflicts of profits, and research the Symbiosis model of major shareholders and medium and minority of shuanghui,get inspire from the study. Finally Put forward the Policy recommendations that promote to realize the coexistence profits.This paper includes these four aspects, first, on the basis of coexistence theory, the essence of the coexistence relationships between the major shareholders and medium and minority shareholders is researched, together with the coexistence models of profits competence and profit coordination; second, the concrete phenomenon and causes of the competence and conflicts between the major shareholders and medium and minority shareholders are pinpointed; third, research the Symbiosis model of major shareholders and medium and minority of shuanghui, Pointed out A large number of related party transactions in the process of MBO, lead to Conflict of interest between major shareholders and medium and minority,and the Impact on Listed Companies of the overall market. four, According to the reason of conflicts of profits and the inspire of shuanghui, put forward the policy recommendations that promote to realize the coexistence profits.