On The Protection Of The Ownership Of Small And Medium Shareholders By The Articles Of Association

Though there are various theories about the nature of the articles of association there is no doubt that the articles of association play an important role in corporate..It is no doubt that the articles of association play an important role in corporate governance.The articles of association can play an important role in protecting the rights and interests of minority shareholders.For small and medium shareholders,Reliance on the company's articles of incorporation to protect its own interests is more efficient and can save a lot of time and effort.As many of the provisions of the company law of our country are too principled,the protection of the rights and interests of small and medium shareholders cannot be comprehensive.Therefore,in the formulation of the company's articles of incorporation,small and medium shareholders can formulate articles of the company's articles of association according to their own special rights and interests to protect their own rights and interests.In order to protect the interests of small and medium shareholders,in terms of corporate governance,the creation of articles of association can further improve the power structure of shareholders' meetings and the board of directors.In terms of preventing company-level infringement,due to the over-regulation of company law on the diligence and fidelity obligations of directors,supervisors,and senior management personnel of the company,it cannot be directly applied.The creation of articles of association may impose more detailed and operational provisions on their obligations and supplement the provisions of the company law.Small and medium shareholders can also improve the company's proceedings and voting methods in the company's articles of incorporation.In terms of the right of inquiry,the company's articles of association can provide detailed stipulations on operational issues such as the way in which the right of inquiry is exercised,procedures,and obstacles to be eliminated.In the right to know,in order to prevent major shareholders and companies from impeding the exercise of the right to know of small and medium shareholders on the ground of improper purpose,the company's articles of association may prescribe in advance the scope of the right to know and the purpose of the improper.As far as voting rights are concerned,small and medium shareholders can make use of the company's articles of association to make various regulations on the restrictions on voting rights.In terms of the right to dividends,a system of compulsory dividends can be created in the articles of association.Preventing major shareholders from using the created articles of incorporation to harm the interests of small and medium shareholders is also worth paying attention to.In judging the validity of the articles of incorporation,it is necessary to insist that the articles of incorporation of the articles of incorporation must not contravene the equity principle of equity and impair the inherent rights of the shareholders and must not violate the nature of the company or contradict the basic legal principles of the company.At the same time,it should be moderately skewed to small and medium shareholders in the face of trade-offs.In judging its effectiveness,target standards and fairness standards should also be introduced to protect small and medium shareholders from.large shareholders' use of the company's articles of association to infringe on their interests.