Analysis On The Path Of The Ultimate Shareholders Of Private Enterprises Invading The Interests Of Small And Medium Shareholders

Interest encroachment seems to be an eternal topic in China's listed private enterprises.When the actual controller of a listed private enterprise controls the listed company through the layer-by-layer control and becomes the ultimate shareholder of the listed company,there will inevitably be a phenomenon of separation of control rights and cash flow rights.This separation will result in different levels of ultimate shareholders' private interests behavior,the encroachment of interests of listed companies,damages the interests of small and medium shareholders,and the motive of encroachment will increase as the separation of the two powers increases.This paper studies the ultimate shareholders' encroachment on the interests of small and medium-sized shareholders.Under the equity control chain paradigm,the ultimate shareholder controls its shareholder meeting and residual claims by virtue of its share of listed company shares.Secondly,it uses its own power to control management.Election of personnel at the level.Under the social capital control chain paradigm,the ultimate shareholder will use its own social capital to support listed companies and whitewash the statements;although the ultimate shareholder can control the election of management personnel,it does not mean that he can control the management.Different from the management of state-owned enterprise administrative arrangements.The private enterprises ultimate shareholder will arrange for the loved ones and friends who are in the strong relationship of their own social capital to be placed in the management to strengthen their control over the management.The path of encroachment is embodied in support behavior and tunnel mining behavior.In the case of the article,the behavior is supported by the inflated value and the injection of inferior assets into the listed company.The use of social capital to increase the ultimate shareholder indirectly holds the value of Guizhou Huajin.The equity control chain decided that Shengyu Mining acquired Guizhou Huajin and the ultimate shareholders benefited.The injection of inferior assets not only affected the development prospects of listed companies,but also used the funds of small and medium shareholders to purchase and encroach on the interests of small and medium shareholders.The tunnel excavation behavior is characterized by dividend policy and equity pledge financing and refinancing to the listed company.The equity control chain is used to allocate high profits when the ultimate shareholder needs funds.The other time is not allocated or less allocated,and the interests of the minority shareholders are transferred to The ultimate shareholder;the ultimate shareholder will lend the equity pledge financing funds to the listed company,and then use these funds to acquire their own shareholding companies and complete the invasion of the empty gloves and white wolves.In the end,it proposes to prevent the ultimate shareholder from encroaching on the interests of small and medium shareholders.The first to establish a system of equity checks and balances can implement the reform of the equity system,foster institutional investors and appropriately modify the legal policy.Second,improve the information disclosure system to shorten the time limit for disclosure and improve.Disclosure of integrity and improvement of authenticity of disclosure;Third,strengthening internal and external governance can increase the proportion of independent directors,strengthen the functions of the board of supervisors and increase external supervision.