The Case Study On Controlling Shareholder's Embezzlement Of FS Company

One of the core issue of corporate governance is the agency problem,agent problem exists not only between shareholders and managers,but also between controlling shareholders and minority shareholders.In recent years,the proxy conflicts between controlling shareholders and minority shareholders have become more and more serious,mainly acting as controlling shareholder's embezzlement.The frequent occurrence of controlling shareholders' embezzlement makes the interests of minority shareholders can not be fully protected.Therefore,carrying out systematic and in-depth analysis on the embezzlement of the controlling shareholder of the company,protecting the legitimate rights and interests of small and medium-sized investors,relieve the contradictions of controlling shareholders and minority shareholders agent,so as to maintain the healthy and sustainable development of the capital market in China,it has a certain research significance.Based on the "economic man" hypothesis,information asymmetry theory,principal-agent theory and the theory of corporate governance with FS company as an example,from the FS company controlling shareholders use rule-breaking associated guarantees,non-operating capital takes up the means of implementation of benefit expropriation,the controlling shareholders encroach on the FS company behavior to analyze the specific case.FS company controlling shareholder equity pledge,FS company controlling shareholder's control and cash flow further separation,the controlling shareholder to implement the behavior of the more aggressive behavior.At the same time,in the FS company relatively concentrated ownership structure,the controlling shareholders to use their own hands,through the control of the company's board of directors and board of supervisors and general meeting of shareholders,in the interests of minority shareholders encroach on.FS company controlling shareholders encroach on behavior,after the decline of the company's financial performance,has serious economic consequences on the company,and because the company's share price fell,dividend payment ability,long term undistributed dividend and asymmetric information,etc.,has been hurt by a small and medium-sized shareholders of usufruct and right to know.This article through to the FS company controlling shareholder of embezzlement case study,the following conclusions are drawn: first,the company due to the lack of checks and balances equity structure,internal governance structure is not sound,the informationdisclosure system is not standard,the defect of external supervision,etc.These problems,so as to create conditions for the occurrence of the controlling shareholders encroach on behavior;Second,through strengthen the internal and external corporate governance,such as optimization of ownership structure,improve the internal governance mechanism and external regulatory policy,to perfect the information disclosure system,etc.,can effectively reduce the happening of the controlling shareholders encroach on behavior.Hope that through this case study analysis,this paper can provide some reference for investors,at the same time to prevent controlling shareholders implement appropriate behavior,improve the level of the protection of minority shareholders,and formulate the corresponding regulation measures play a positive role.