Interest Balance When Share Ownership Variation

The Share Reform as a great success beginning at the middle of 2005 has resolved the issue of share ownership distribution that has restricted the development of Chinese Capital Market for a long time. This reform has raised the prosperity of Chinese Stock Exchange Market. Share ownership variation also has been caused by this reform for almost listed companies of Chinese Stock Exchange Market. There are so many proposals for share ownership variation that advanced share management level rapidly.The share reform has caused the adjustment of economic interest distribution through variation of share ownership structure and proportion. For this paper, it mainly sets forth the shareholders' interest adjustment. The core point of this reform is that non-circulation shareholders pay circulation shareholders the considerations with the purpose of balance interest among shareholders.This paper takes share reform on QIANJIN PHARMACY as example, through analyzing cost and potential interest of all kinds of shareholders in the company, regressing to the principle of proposal design, it posts that the consideration share reform is the core factor of interest balance. The consideration distributes the advanced share valve to the circulation shareholders and non-circulation shareholders and lock up the diversified risk with the assistance of the acknowledged conditions of cash dividend as well as limiting the flowing duration.The deep reasons of arrangement on all parties' interest in QIANJIN's share reform proposal and all parties' corresponding responses are introduced in this paper. This paper are seeking for the signification of share ownership management, analyzing the way for problems resolving and revealing the importance of interest arrangement for the share ownership alteration.The author has experienced the whole process of Share reformation proposal of QIAN JIN PHARMACY, including formulating, consummating proposal, negotiating and implementing the plan. In my opinion, the whole process can be concluded as a typical share ownership variation case. Balancing interest through distribution methods is very important to the share ownership management, which also can be used for reference by other companies.