Research On Capital Occupation Behavior Of Major Shareholders Of V V Company

In October 2020,The State Council issued opinions on Further Improving the Quality of Listed Companies,which clearly pointed out that capital occupation was a "pain point" to be solved.In 2006,the capital occupation ratio of listed companies was as high as 11.24%.With the promulgation of a series of policies,this phenomenon has been improved,but up to now,the ratio is still high.V V was lightning "ST" in April 2021 due to capital occupation.Its major shareholders through illegal guarantee,fictitious transaction and other ways occupying,which are very representative and typical.This paper chose V V as the research object,focused on exploring the reasons for capital occupation,evaluating its rectification measures,and summarizing the enlightenment of the case,which is of great practical significance for other listed companies to strengthen internal control to prevent major shareholders from occupying funds.The case study found that V V Group,with the help of intermediaries,occupied funds through illegal guarantee and large advance payment transactions.The main reasons for major shareholders to occupy funds include three aspects: the major shareholders failed to diversify investments and in need of funds to get rid of financial difficulties;there were serious deficiencies in V V’s internal controls;the external supervision mechanism wasn’t effective.Capital occupation had a serious negative impact on V V’s operation and seriously damaged the interests of minority shareholders and creditors.V V has put forward some rectification measures but there are still not perfect.Based on the five elements of internal control,the paper puts forward targeted supplementary suggestions.Based on the case study of capital occupation by major shareholders of V V,this paper suggests that listed companies should be vigilant and take active measures to comprehensively strengthen internal control to manage or prevent funds occupation.At the same time,external regulators should increase penalties and optimize regulatory mechanisms to help the high-quality development of listed companies and escort the long-term development of the capital market.