A Study On The Controlling Shareholders’ Encroachment On The Interests Of Listed Companies

China’s capital market system is not perfect enough,in the operation of listed companies,there are frequent incidents of controlling shareholders encroachment on the interests of the company,which makes it difficult for many listed companies to continue to operate.As many listed companies in China have the problem of unreasonable shareholding structure,it provides convenience for the controlling shareholders to encroach on the company’s interests,and the shareholders of the holding company can directly encroach on the listed company’s resources and harm the interests of the company and minority shareholders by using their actual control right.Study of the controlling shareholders encroach on the interests of the company act and to prevent not only for the improvement of the legal and regulatory system has certain help,and for the protection of the company’s interests and the value of listed companies plays an important role,and can also help avoid risk safeguard its interests,small and medium shareholders contribute to the healthy and orderly development of capital market.Paper adopts literature research method,case analysis,specification,tunneling theory,principal-agent theory and information asymmetry theory as the theoretical basis,based on the study of domestic and foreign related literature to T company as an example for case study,through to the T company financial data analysis of the controlling shareholders encroach on events: T company controlling shareholder by tunneling behavior,using equity pledge learn for the benefit of itself,financing way and way of handling the major issues of the company to disclose the implementation of appropriate behavior.The problem of controlling shareholders’ encroachment on the company’s interests in listed companies will not only impact the company’s interests,but also damage the interests of minority shareholders.Paper from the Angle of company and minority shareholders are two consequences of behavior controlling shareholders encroach on the company’s benefit is analyzed,combining with related industry data,concludes the interests of company in controlling shareholders of listed companies occupy behavior of three main causes: the external factors such as lack of regulatory oversight,internal factors such as the internal control is not reasonable,and the third party factors such as lack of auditor independence.The paper puts forward some Suggestions to solve the problem of controlling shareholders’ encroachment on the company’s interests,such as perfecting the capital market supervision system,strengthening the punishment for the illegal behaviors of controlling shareholders,optimizing the company’s shareholding structure,ensuring the independent role of the board of directors and the board of supervisors,strengthening the construction of internal control system,and strengthening the independence of the third party institutions.