Research On The Minority Shareholders Protection In The Fraudulent Issuance

In the past years,there were many cases of fraudulent issuance.But no one was forced to delist but just imposed a fine.In July,2016,Xin Tai Electric received the punishment decision from CSRC and violated the requirement for compulsory delisting.Therefore,Xin Tai Electric would be the first delisting stock of growth enterprise market,also the first delisting stock for the reason of fraudulent issuance.How would it be processed? And how the minority shareholders be protected? These questions caused widespread attention.The fraudulent issuance of Hongtex International occurred in Hong Kong,2010,is very similar with it.But the treatments were very fast and the results were very successful.There are so many experiences could be learnt from.This thesis will explore the protection of minority shareholders' rights by the comparison of Xin Tai Electric and Hontex International,and give several suggestions to solve this problem.In order to facilitate research,this thesis defines the concept of �fraudulent issuance� on the basis of previous studies.By referring to amount of rules and previous cases,this thesis concludes the mechanism of minority shareholder's protection.According to these analyses,this thesis introduces the Xin Tai Electric and Hontex International cases respectively.In the analysis of Xin Tai Electric case,this thesis starts with the processing of it,discovers that the most important point of minority shareholder's protection in the fraudulent issuance is the compensation dilemma faced by the minority shareholders,analyses the compensation dilemma from several aspects such as the extent of lost,the amount of compensation and the method of compensation and explores the reason which causes this ineffective situation.In the case analysis of Hontex,this thesis highlights the excellent practice of its processing which resolved the compensation issue and affords some suggestions for China mainland.The research shows that these mechanisms related with the processing of fraudulent issuance in practice failed to protect the minority shareholders.They are still faced with serious compensation dilemma.In order to enhance the protection of minority shareholders in the situation of fraudulent issuance,this thesis proposes to perfect securities regulatory laws and regulations and simplify the level of securities supervision and take several concrete optimization measures.