Research On YD Company's Controlling Shareholder Equity Reduction Plan

In the era of full circulation,the underweight wave of the controlling shareholder is overwhelming.In today's academia,most scholars studied the negative effects brought by the controlling shareholder's holding reduction.In fact,Reasonable reduction of controlling shareholder can optimize the ownership structure and enhance the value of the company.The controlling shareholder of the company holds 56.32% of the shares and absolute control.Therefore the paper took YD company as the research object and developed a scientific and available reduction plan.At first,we analyzed the feasibility of YD company's controlling shareholder reduction and analyzed reduction time according to the control structure,the company valuation level and the company operating environment.Secondly,we analyzed controlling shareholder's reduction time,reduction methods,the proportion of reduction and the utilization measures of the success cases and made a revelation for YD company.Then,we analyzed the reduction span of controlling shareholder and the approach to prevent violation.Finally,based on the success cases,we designed a plan for introduce the strategic investor's by block trading.The plan includes reduction objectives,principles,timing,proportions,modalities and safeguards.Also we analyzed the rationality and the expected effects.Scientific and reasonable reduction is conducive to industry consolidation,promote industrial transformation and upgrading.Also it can meet their own financing needs,expand their business,optimize the ownership structure.We hoped that this reduction plan can provide reference for the controlling shareholder of YD Company,therefore,it can reduce its holdings,improve the enterprise value,protect the interests of small and medium shareholders,regulate the reduction behavior of the controlling shareholder,and also play a reference role for other companies.