Control Transfer In Equity Division Reform

The conflicts of interest between different subjects have been upgraded and expanded by the existence of tradable shares. It violates the "same shares same rights" principle, so the stock market can not develop smoothly. The lack of legitimacy and rationality led to the split share structure reform launched. Split share structure reform is carried out in recent years, the most important reform in China's securities field, which is for purpose of free transfer of shares of public company and changes the state of slump in the stock market's as the value pursuit and protect the interest of stockholders who possessed tradable stock as the core principle. Split share structure reform is much more than an economic problem, it is more a legal issue and needs to be forward by the means of law thinking. This article analyzes the share-trading process from the perspective of the corporate control to find the core elements of the transfer of control and its role in the mechanism of in-depth study, and finally proposes the appropriate legal advice.This paper is divided into three parts. The first part describes the historical origin of the split share structure and effect. The author tries to find its association with the company through the whole process of reform. The second part raises that the nature of the split share structure reform is to transfer control of company, and than did in-depth exploration of the transfer of corporate control of the three elements on price, corporate governance and management of capital gains, meticulous search for the role of these elements methods and the link between. The third part makes sound recommendations one by one for the preceding question. For state-owned shares pricing issues, we should clear state-owned pricing factors, as well as strict transfer procedures to ensure that state transfer reasonable and lawful; by strengthening regulation to improve the corporate governance structure; Finally, the state-owned capital operation budget system is established to make positive evaluation, hoped that the system can balance the loss of state assets and capital flow play a role in the process.