On The Protection Of Small Shareholders' Profit In Limited Company

In recent years, the small shareholders' profit in limited company, especially those in listed company has been damaged more and more seriously, which causes great concern of the whole society. In this aspect, there are much progress in system construction, supervise measure as well as judicial remedy from theory to practice. However, an often-ignored fact is that in limited company, which is much more than listed company in number, the legal idea of shareholders is weak and the construct of corporate governance loses balance. In addition, the discretion of big shareholders is common. In the other side, there isn't any concrete regulation to protect the small shareholders' profit in present Company Law, which lead a default of legal basis in litigation.Based on this background, this article firstly analyses the status quo, deficiency and pressure in protecting the rights of small shareholders. It also discusses the essentiality and legal foundation of building related protection mechanism. Then learned from the established experience of western countries as well as connected with our own characteristic in limited company, this article suggests a series of measures in protecting small shareholders' rights, such as endowing small shareholder with the appeal power to dismiss the company, compelling the big shareholder to buy small holders' share, perfecting the regulation of direct litigation and constructing the derivative litigation system etc. In conclusion, after the formation of an integrated litigation system in Company Law, the profit of small shareholders in limited company will benefit a lot and under a sound protection.