Research On Issues Dual-class Share Structure Could Cause In Its Application To China

'Dual-class share structure' arranges various roles to different shareholders of joint-stock companies through classifying shares in voting rights,benefits and duties.'Dual-class share structure' could help strengthening founder's dominance and raising companies'financing capacity,yet it flaws in suppressing part of shareholders' rights as well.Countries?regions) including United States,Canada allow companies to establish dual-class shares and this structure is popular in their markets,while some parts of world such as German and Hong Kong forbid 'dual-class share structure'.Singapore's Corporation Law has been modified to apply to 'dual-class share structure'.China's Corporation Law allows joint-stock companies to follow 'one share one vote' rule alone.The advantages of 'dual-class share structure,fits squarely not only to the need of rising generation of innovative technology and Internet companies,but also the dilemma China's state-own enterprises reform has.The drawbacks of the application of 'dual-class share'includes the ambiguous boundary of company autonomy,opaque company information,the lack of exit mechanism and shareholders' remedy channels.To solve problems above,following approaches on following proposals are suggested:Improving legislation to define the boundary of corporation autonomy;establishing transparent information system,return mechanism of 'dual-class share structure' and shareholder-protection system to balance various interests.