The Control Structure Of Corporate And Its Advantages And Disadvantages Under Multiple Shareholding System

This article mainly studies the multiple ownership system pursued by high-tech Internet companies in recent years.With the development of technology and productive forces,the scarcity of capital is greatly reduced and the relationship between humanism and capital is changed in the process of corporate governance.Especially in high-tech Internet companies,the importance of good human capital to the management of a company outweighs the importance of capital.However,the single shareholding system established under the principle of "one share,one power" can not reflect the importance of human capital to the operation of the company.In the process of expanding the scale of operation and introducing external investment,the outstanding human capital is diluted due to the shareholding proportion and gradually lose the company's control.The multiple equity system solves the conflict between the company's financing needs and the retention of control by the core team by giving Class B shares with multiple human voting powers and voting rights.Many high-tech Internet companies represented by facebook have implemented such a shareholding structure.However,due to the fact that the economic interests of the shareholders of Class B deviate from their control over the Company,the control of the shareholders of Class B is hard to restrained,and the information disclosure is not transparent,the system of multiple equity is debated.In July 2013,Alibaba proposed a "partner" system.By setting up a unique team of "partners",Alibaba gained more than half of the voting rights in the board of directors of the Company and got the trust of Softbank,the largest shareholder of the Company,and Yahoo! stand by The "partner" system is also the essence of small stock ownership of the voting rights,the essence is also a multiple ownership system.However,there is a clear formal difference between it and facebook's classic multiple ownership system.This article first analyzes the current situation of the development of multiple equity systems,and analyzes the effectiveness of the classical multiple equity system in the company's control structure through a mathematical model.Afterwards,this paper analyzes the advantages and disadvantages of the classic multiple equity system,and then elaborates the difference between the"partner" system and the classic multiple equity system.On this basis,this paper further analyzes the reference significance of these differences to the solution to the shortcomings of the existing classic multi-equity system.At the same time,this article also analyzes the "partner" system still has some deficiencies that cannot be solved.Finally,this article summarizes the effectiveness of the multiple equity system in the company's actual control structure and its remaining deficiencies.Further,this article combines the improvement of the "partner" system and the problems that still exist,and puts forward proposals for the improvement of the multiple equity system in the future,including specific improvement directions and scope of applications.Compared with the existing literature,who pay attention on the difference between the multiple equity system and the single share system,the main innovation in this paper is to focus more on the effectiveness and specific forms of the multiple equity system itself.On the basis of this,we will propose how to improve the multiple equity system in the future.The proposal has adapted to the current Chinese policy direction of supporting the "Unicorn" company's A-share listing and has certain reference significance for the current market focus issues.