Research On The Behavior And Prevention Of Major Shareholders' Interests Infringemen

China’s securities market has developed rapidly in just a few decades,but there are also many problems.At present,the supervision system of securities market is not perfect,the supervision function is limited,and a large number of companies have overly concentrated ownership structures,which leads to the situation that many large shareholders take advantage of their own control rights to encroach on interests of minority shareholders.There are many ways of embezzlement.For example,Kangmei Pharmaceutical falsely increased its assets and major shareholders embezzled benefits through related party transactions and direct appropriation of funds.ST Feima and Kangdexin’s major shareholders encroach on the interests of listed companies through frequent stock pledge.The encroachment of major shareholders not only affects the daily operation of the company,but also causes the price to fall by the limit,damages the interests of investors and so on,seriously disrupting the securities market.Therefore,the study on the way,motivation and prevention of the major shareholders’ benefit encroachment is beneficial to restrain their behavior,safeguard the rights and interests of numerous small and medium investors and promote the healthy development of China’s securities market.In this context,this paper firstly uses literature research method to sort out the relevant researches on the benefit encroachment of major shareholders,and then uses case analysis method to study and analyze the continuous benefit encroachment of major shareholders in Zhangzidao.The major shareholders of Zhangzidao usurp the interests by means of precise reduction of holdings,high dividend payouts and long-term occupation of non-operating funds.Based on the analysis of the reasons for the major shareholders’ benefit embezzlement,it is found that,first of all,the ownership structure of the company is too concentrated,and the largest shareholder’s shareholding ratio is too high;Secondly,the internal governance effect of the company is poor,the board of directors and management formed a community of interests,the board of supervisors and independent directors can not play a role;Thirdly,the lack of industry audit experience and independence of auditors makes it difficult to exert supervision effect on major shareholders.Finally,the supervision system of the securities market needs to be improved and the restraint effect is poor.In view of the embezzlement of interests by major shareholders of Zhangzidao and the problems exposed,suggestions are put forward.First,the company’s internal equity structure should be optimized;Secondly,strengthen internal governance,improve the structure of the board of directors,avoid the simultaneous appointment of the chairman and general manager,introduce external independent directors,standardize the operation of the board of supervisors and so on;In addition,the audit quality of auditors can be guaranteed by increasing penalties and classifying firms.Finally,improve the supervision system of the securities market,by raising the illegal cost and strengthening the information disclosure to restrain the benefit encroachment of major shareholders.