Conflicts Of Interest And Balance Of The Stakeholders In M&A

The company's growth is one of the important ways when the company pursue to maximize the economic benefits.The company's growth comes from internal growth and external growth.External growth is more quickly than internal growth ,which rely solely on internal force,because external growth will strength the power from external forces.To accelerate the pace of comany's growth,more and more companies tend to choose M&A to achieve the large-scale effect of the shortcut because of the fierce competition in the market.Though M & A benefits the company a lot such as wealth accumulation and efficiency improvement,M&A brings some negative effects,which will break the balance of the interest of the stakeholders.M & A is paid more attention with the wave after wave of M&A in China market.The imbalance of the interest of the stakeholders is gradually ignored because people focus on the practical operation and risk prevention. To gain more profit through enlarging the scale and the stakeholders pursue the interest as well. When the existing benefit-sharing mechanism is broken,the new one will be established.The new mechanism of the stakeholders' interest will cause some losers and some winners and a new balance between the stakeholders will be create to protect the interest of all parties.This paper is divided into four chapters:The first chapter : the definition of the conflict of interest in the M&A, which including three parts such as concept and characteristics of M&A, the definition of stakeholders, the possibility of the interests conflict of the stakeholders and the legitimacy to protect the interests of the stakeholders . The conflicts of interest will be found through the analysis of the stakeholders to gain the protection meaning .The second chapter:the conflicts of interest through the shareholders in M&A , the imbalance of the interests and the reason of the conflicts of interest will be found through the further analysis of the conflicts of between the shareholders.The third chapter: relief measures will be searched to create the new balance of shareholders' interests according to the conflicts of interest in M & A. The best relief measures will be produced through the information disclosure system, the right to be informed of the shareholders, duty of good faith of shareholders and the right to appeal of shareholders .The forth chapter: the conflicts of interest and the balance between the stakeholders in the process of M&A, including shareholders ,creditors and employees, etc.. The best relief measure will be produced through the analysis of conflicts of interest and imbalance of the stakeholders according to the existing laws.