Case Study On The Problems Of Funds Occupation Of Controlling Shareholders Of ST Furen Group Pharmaceutical Co.,Ltd.

The controlling shareholder's capital occupation has been in existence since the formation of the country 's capital market.Although the regulatory authorities have gradually established and improved relevant laws and regulations to supervise and punish this behavior,based on the majority of listed companies in China 's capital market,there is excessive concentration of equity and internal family members.Management and the company 's lack of attention to internal control,and other basic reasons.The controlling shareholder 's behavior of capital occupation has not been well controlled.Therefore,the controlling shareholder 's embezzlement behavior has been studied in depth to explore its impact and analyze its impact.The causes and corresponding countermeasures and suggestions have certain practical significance for maintaining the healthy and orderly development of the capital market.The article is based on the information asymmetry theory,principal-agent theory,and corporate governance theory,and analyzes the case of Furen Pharmaceutical's capital occupation and related party breach of guarantee.Starting from the behavior of the controlling shareholder using the non-operating funds to occupy and rob the listed company's funds,the internal production of the company caused by the controlling shareholder's capital occupation will be discussed through the organization of the company's disclosed annual reports and public information.The decline in operating capacity has a negative impact on the company's solvency and profitability.Not only that,the company's small and medium shareholders have also suffered interests,and the good order of the securities market has also been adversely affected.On this basis,the article analyzes the motivation of the controlling shareholder for infringement and the reasons for the realization of the capital occupation.It is found that the controlling shareholder of Furen Pharmaceutical is in need of debt repayment due to falling into a debt dispute or in order to achieve company diversification The objective of the operation,or the capital occupation behavior implemented in order to supplement the capital needs of the company's related parties.Defects in the company's internal governance mechanism and inadequate external supervision provided convenience for controlling shareholders to implement capital occupation.Based on the analysis of the reasons for the fund occupation of Furen's controlling shareholders,the revelation and suggestions for controlling shareholders' occupation of funds are put forward.The double-high deposit and loan in the company's financial statements and the frequent pledge of equity by the controlling shareholder can to some extent serve as an early warning for external investors and regulatory authorities,and should pay more attention to such companies.Finally,the article proposes feasible countermeasures from the perspectives of internal prevention and external supervision: improving a dominant shareholding structure,improving the company's internal governance mechanism,strengthening the company's internal control management,strengthening external supervision and increasing illegal costs.It is hoped that this article can provide some references for investors and regulators through the analysis and research on the case of Furen Pharmaceutical's capital occupation,and it has reference significance for curbing the behavior of controlling shareholders infringing the interests of listed companies in the capital market.