Case Study On The Failure Of *ST Chuangzhi Reconstructing

With the adjustment of China’s economic structure, the development of national economy and the reform of enterprises, the reconstructing has become one of the most important contents in the daily operation of the enterprise. Listing Corporation through reconstructing to expand business scale or change the operation state, and the failure of corporate reconstructing cases are common, this is because in the process of reconstructing, controlling shareholder often through injection of bad assets, unreasonable of related transactions to seek private wealth and against the interests of minority shareholders, then the small and medium shareholders would be unsatisfied, which will led to the failure of reconstructing. The case study of the failed reconstruction can provide a reference for our country’s enterprise restructuring, which has a positive and important significance for improving the quality of enterprise reconstructing.This paper studied the failure of *ST Chuangzhi restructuring from the perspective of protecting the interests of minority shareholders. This paper combined theory analysis with case study and pursued concrete analysis in the process of * ST Chuangzhi reconstructing and the failure reason, then studied the invasion behavior of controlling shareholders mainly from the following three aspects, major shareholders inject assets of poor financial situation, related transactions with a high assessment value of the underlying assets and a low price of the additional, the unfavorable external environment for reconstruction. Finally, according to the market environment of our country, put forward some suggestions for the protection of small investors’ rights and interests in the process of enterprise reconstructing. In view of this, this paper aims to through analysis the failure reason of *ST Chuangzhi reconstructing pointed out that the invasion behavior of large shareholders is not conducive to the reconstructing, and that reconstructing must be propitious to the long-term development of the enterprise through regulative the major shareholder’s behavior, and strengthen the protection of small shareholders’ interests.