Research On The Impact Of Large Shareholders' Reduction Of Lugang Culture On Minority Shareholders' Rights And Interests

With the full swing of equity division reform work in our country,securities market gradually went into the era of full circulation of stocks.Circulation policy differences between tradable shares and non-tradable shares changed.New shareholders relationship arose at the historic moment.The lifting of the non-tradable shares has changed the way how the interests of non-tradable shareholders realize.The country's capital market environment has changed historically.Before the equity division reform,a large proportion of the shares in the stock market could not be circulated,resulting in the inequality of rights and interests between non-tradable shares and tradable shares.the major shareholders damaged the rights and interests of small and medium-sized investors by using the advantage of information.After equity division reform,major shareholders began to pay attention to the secondary market stock price changes,not the net assets of the company.Due to the unfairness of information disclosure,large shareholders used the internal information control of the company's financial and operating conditions to boost share prices as much as possible,and choose a good opportunity to reduce the amount of the share stock to obtain speculative gains.After the unreasonable reduction of the stock,the stock price began to fluctuate violently.It was too late for the small and medium-sized shareholders to respond to the stock market for the information lag.Eventually,the interests of the minority shareholders were impaired.This paper takes the case of the reduction of the major shareholders and senior executives of Lugang culture as the object of study,and analyzes the process and causes of the reduction of the major shareholders as well as the impact of the reduction of the major shareholders on the rights and interests of small and medium-sized investors by focusing on the case analysis method and supplemented by the event research method and literature research method.The results show that there are three main reasons:one is to seek personal gains;Secondly,the company performance pressure encountered a bottleneck;The third is to effectively avoid the new rules on reducing holdings.The means of reducing the holding of large shareholders of Lugang include the resignation of senior executives,reduction of holding for cash,and the precise proportion of the red line;violation announcement and not adhere to commitment in Low period and illegal reduction;High-profile release of transformation information,in order to achieve the concept of hot speculation.Finally,the company's stock price,which is completely related to the interests of small and medium-sized shareholders,drops sharply,the company's various financial indicators fluctuated drastically,thus directly encroaching on the rights and interests of small and medium investors.Finally,this paper puts forward suggestions from the legal system level,the internal supervision level of listed companies and the policy level,in order to appeal to major shareholders to use more standardized methods and means of reducing holdings.Simultaneously,from the point of view of listed companies,governance proposals are also proposed to protect the fairness of the entire capital market and the interests of small and medium shareholders.