A Study On The Matters Of Control Rights Conflict Between Founders And Investment Shareholders In Listed Companies

The "Control Rights of the Company" is an economic right derived from the ownership of the company’s shareholders.It is essentially a new type of benefits and a product of interest conflict between the company’s principals.In the process of the emergence and development of the company,the effective exercise of company’s control rights is of great significance to establish a contractual trust between shareholders and improve the operation efficiency of the company.As several listed companies in China have been caught in control right disputes in recent years,the company’s operations have been hit hard,and at the same time it has brought severe impact on the capital market.As a result,the legal supervision and compliance system put forward higher requirements for founders of listed companies to maintain corporate control and prevent “hostile takeovers.” This article looks forward to expanding the research on control rights conflict in corporate governance,including the plan design and legal regulations about the maintenance of founder’s control rights.Case studies,comparative analysis,and other methods were used.This thesis also borrows from the successful experience and theories from the U.S.company laws to provide legal advice and practical suggestions for founders on design of corporate governance structure and financing options to avoid the risk of control right conflicts.