The Perfection Of The System Of Forced Delisting Of Listed Companies In China

A mandatory delisting of a listed company refers to a legal act by a listed company to passively suspend or terminate a transaction on a particular securities market for various reasons.The listed company's mandatory delisting system in China is imperfect.It has seriously affected the listed company optimize their governance mechanism.Additionally,it also affected the rational allocation of resources in the securities market as well as the protection of the legitimate rights and interests of small and medium investors.Based on the discussion of the mandatory delisting system of listed companies at domestic and foreign countries,this essay puts forward some suggestions to improve the mandatory delisting system of listed companies in China.Firstly,through the definition of the mandatory delisting and the mandatory delisting legal system of listed companies,the scope of this essay is defined,namely,the mandatory delisting standard,the mandatory delisting procedure and the compulsory delisting approval subject.Furthermore,this essay will demonstrate the necessity of improving mandatory delisting system of listed companies in term of the theoretical basis and realistic functions.The theoretical basis is mainly discussed from the contract theory and the life cycle theory.And the practical functions are mainly discussed from the perspectives of the mandatory delisting system of listed companies to improve the governance of listed companies,the optimization of resource allocation in the securities market and the protection of the legitimate rights and interests of small and medium investors.Secondly,combined with the status quo of the mandatory delisting system of listed companies in China,this essay points out the many defects of the mandatory delisting system of listed companies in China.The defects are that the mandatory delisting standard is poor in operation,the mandatory delisting procedure is low,and its approval body's rulemaking rights are limited.Thirdly,this essay examined the mandatory delisting system of listed companies in New York,Nasdaq,Tokyo and Hong Kong,and gained many inspirations on mandatory delisting standards,mandatory delisting procedures,and compulsory delisting approval.Finally,this essay puts forward some suggestions for perfecting the mandatory delisting system of listed companies in China,including the standardization of delisting standards,the optimization of delisting procedures and the improvement of the main functions of compulsory delisting.