A Study On The Protection Of The Interests Of Minority Shareholders In The Gem Delisted Companies

Since officially opened in 2009,the gem of our country has made the very big contribution to the capital markets,it provides a unique financing platform for those difficult to land motherboard market of small and medium and high and new technology enterprise,for our country the capital market to provide more comprehensive services,and the introduction of capital of our securities market provides a new channel.In the past decade,although the size of gem market has grown rapidly,the rapid growth has brought many new problems.Due to the inherent characteristics of gem itself,its listing access threshold is lower than that of the main board market.The smaller size and share share of the company make its stock price easy to be manipulated,and the stock price fluctuation range is abnormal.In addition,the stock of the high premium and concentrated cash-out issues are also common.Such a serious situation,the gem forced delisting of companies is still not common,and the existing problems need to be reflected on the gem delisting system and discussion.As an important part of the securities market system,the delisting system plays an important role in the capital withdrawal of listed enterprises in China.Over the past 20 years,China's securities market has experienced considerable development,but compared with the development of the securities market in western developed countries,our current achievements still have greater room for improvement.Both in the construction and application of the securities market system in China,the delisting system is not ideal.Delisting has always been a difficult problem in China's capital market.Many companies with poor performance still continue to operate in the capital market at low cost without being delisted.Therefore,improving the overall operation quality of listed companies and promoting the concept of rational investment to investors need to be considered and discussed.A reasonable and effective market must be based on the protection of the rights and interests of minority shareholders,so the interests of minority shareholders protection system is also one of the basis for the good operation of the capital market.This paper adopts the method of case analysis to select the first share of forced delisting on gem and the first company to be forced delisting due to fraudulent listing--xintai electric.This paper aims to analyze the compulsory delisting of xintai electric and the protection of the interests of minority shareholders,and put forward corresponding Suggestions from different perspectives.Firstly,the institutional background and relevant theories are sorted out,including the fraud triangle theory,information asymmetry theory,incomplete contract theory and supervision theory,which need to be applied in the subsequent analysis and enlightenment Suggestions.Secondly,it makes a comprehensive introduction and description of the delisting process of xintai electric and the protection of the interests of small and medium-sized shareholders,involving three links:mandatory delisting period information disclosure,conditional public commitment of share buyback,and advance compensation of sponsor institutions.Then it makes a comprehensive analysis of the reasons for xintai electric's forced delisting and the reasons for the damage to the interests of minority shareholders(including the above three links).Finally,from the perspective of participants in the securities market,including listed companies,investors,sponsors and other intermediary institutions,this paper puts forward relevant Suggestions and improvement measures that can more comprehensively and effectively protect the interests of minority shareholders in the mandatory delisting of gem.As a whole,this paper finds out the illegal behaviors of xintai electric and the problems existing in the protection of the interests of minority shareholders.The proposed countermeasures and Suggestions can provide certain reference value for the whole market.In terms of implementation effectiveness,further discussion and research are needed in the future.In the current market,the lack of interest protection for minority shareholders is an important factor leading to the decline of the stock market.More and more potential investors are unwilling to participate in the securities market and lose confidence in the market,so it is imperative to improve the delisting system and the minority shareholder protection system.