The New Development And Improvement Of The Two-tier Shareholding Structure In My Country

The emergence of the Dual-class Share Structure has its historical and market demands,and is a manifestation of the revision of modern capitalism.The dual-class share structure allows the founders or entrepreneurs to not dilute equity during the financing process,helping to achieve the blueprint for their visions.However,this weakens the investor's right to speak and erodes the regulatory mechanism of the enterprise.Therefore,in reality,there is a great controversy about the legitimacy and rationality of the two-tier equity structure.The writer confirm its reason and legality that it is a contract between the founders and investors and a declaration of will voted by shareholders' meeting.The company law should allow companies to freely choose to apply,but should make balanced adjustments to the interests of heterogeneous shareholders.Countries with more active dual-class share structure,such as the United States and Canada,are more tolerant of their prior restrictions,and are more focused on protecting the interests of investors in and after the event.China's Hong Kong Stock Exchange and Shanghai Stock Exchange have respectively enacted new rules for allowing dual-class equity structure to be listed in 2018 and 2019,which are more rigorous,cautious and comprehensive,and innovative compared to foreign institutions.However,our company should be cautious.Research shows that the dual-class share structure has a time limit for the promotion of corporate performance,and that it is not the only way for the founder to gain control,and not suitable for all enterprises.On the other hand,China Securities Regulatory Commission and the Exchange should constantly improve the supporting system of the two-class equity structure in practice,and encourage enterprises to make additional guarantee commitments in the charter so that investors can obtain comprehensive protection before,during and after the event.