Research On Cumulative Voting System And Rights Protection Of Minority Shareholders

In 2005,cumulative voting system is introduced in China formally.From then on,the voting rights of minority shareholders are protected by such a system.Although the phenomenon that the board completely controlled by the large shareholders is relieved,the effect of significant implementation is still not obvious.In order to certify that the system is useful and practicable,the author analysis the case of "Battle of Control Rights" of Konka Group Co.,Ltd which the minority shareholders investors beat the dominant stockholder and won the leading power.This is the first time that minority shareholders get leadership in a cooperation in China.Therefore,it is of great significance to analyze the case to improve the cumulative voting system and protect the rights and interests of minority shareholders.This paper discusses the mechanism of the impact of the cumulative voting system on the rights protection of minority shareholders.In this paper,we take the case study of Konka Group as the typical case and use the single case study method.Summaries can be given as follows:with the deepening awareness of minority investors in our country,their consciousness of participation in corporate governance is awakened.At the same time,due to the limitations of minority shareholders,as well as the vulnerability of their alliance,the minority shareholders cannot control the company and may not be able to enhance corporate value.There are still some shortcomings in the implementation of the cumulative voting system,the accumulation of the voting system is particularly important.Finally,recommendations are given to make optimize the cumulative voting system.Based on the conditions in our country,the author proposed some measures according to the conclusions of the case study.The measures relate to how to perfect the cumulative voting system and how to protect small and medium-sized investors' rights after shareholder's meeting,hoping the results can be a reference for the perfection of China's cumulative voting system.