Case Analysis Of Major Shareholders' Reduction In T Company

After the completion of the share-trading reform in 2005,with the lifting of the ban on restricted shares,China's listed companies frequently experienced major shareholder reductions.Especially after the stock market suffered a major stock market crash in 2015,the frequency and intensity of major shareholder reductions were particularly large.In order to prevent the major shareholders from maliciously reducing the interests of small and medium-sized investors,to maintain the stability of the securities market,and to revitalize investors' confidence in the Chinese stock market,the China Securities Regulatory Commission has continuously introduced regulations on reduction.However,these measures have failed to fundamentally solve the behavior of major shareholders' malicious reduction of cash and insider trading.Faced with the phenomenon that large shareholders of listed companies frequently reduce the damage to small and medium-sized investors,how to regulate the reduction of large shareholders has become a concern.This paper selects T company as the research object,and applies the literature research method,case study method,comparative research method and other research methods to analyze the process,motive and consequences of the reduction of the majority shareholder of T company and so on.Through the research,it is found that the main reasons for the reduction of shareholders of this company are three.One is to reduce the arbitrage at the high stock price;the second is that the company operates a hidden crisis,and the major shareholders are busy fleeing;the third is to avoid the instability of the stock market risks.The pre-capital operation of the major shareholders of T company is mainly to implement a high-transfer profit distribution policy and a strategic policy for mergers and acquisitions.After many large shareholders reduced the arbitrage,the company's share price collapsed,the market value has shrunk severely,the company's operation is facing a serious deviation from the net cash flow and performance,high-value goodwill is difficult to achieve,debt repayment pressure,performance commitment can't be completed,the company has no actual controllers and so on.This paper puts forward its own views and suggestions from three perspectives: legal level,company level and investor level.On the legal level,we should formulate a system of shareholding reduction with a combination of lenient and strict,strengthen the company's information disclosure system,and increase penalties for violations of laws and regulations;at the company level,we should actively promote the structure of equity diversification and establish an effective internal checks and balances mechanism,and prevent malicious reduction of major shareholders by improving corporate governance structure.At the investor level,investors should pay attention to the company's major capital operations,but also to raise awareness of rights.It is hoped that through these measures,it is possible to better regulate the shareholding reduction of major shareholders,safeguard the interests of small and medium investors,safeguard the interests of the company,maintain the stability of the securities market,and enhance the confidence of investors in the Chinese securities market.At the same time,it also provides reference and reference value for Chinese scholars to study the behavior of major shareholder reduction.