Protection Of The Interests Of Shareholders In Company’s Charitable Donation

As a typical way for modern corporate to assume social responsibility, with the continuous development of social economy and corporate law theory, Company’s charitable donation has flourished. Company’s charitable donation can enhance the company’s business image, social influence as well as market competitiveness. It can also promote company’s sustainable development and greatly benefit society. In practice, however, inappropriate behaviors and irrational charitable donations are very common. This makes the interests of shareholders in the process of company’s charitable contributions are often compromised.At present,I want to say the protection of the interests of shareholders in company’s charitable donations is still in a early stage in our country. So,break the plight to protect the interests of overall society in company’s charitable donation and protect the interests of shareholders in company’s charitable donation effectively are very important and urgent.This article is divided into following four chapters:The first chapter describes the theoretical basis of protection of the interests of shareholders in company’s charitable donations. The chapter firstly describes the development of company’s charitable donation.I analysis the specific standards of company’s charitable donation from four parts.Then,the chapter illustrates the necessity to protect the interests of the shareholders in company’s charitable donation.Chapter two introduces the problems in protection of the interests of shareholders in company’s charitable donation in four aspects.It includes decision-making mechanism,information disclosure,supervision and relief mechanism to protect the interests of shareholders.This chapter is divided into four sections:The first part introduces that charitable giving decision-making mechanism lacks effective regulation.In the aspect of decision-making body,decision-making body is disordered.In the aspect of decisionmaking procedures,the law makes provisions in principle,but the decision making process is still very chaotic.In the aspect of duty of care,directors in company fulfill their duty inadequate and incomplete. TThe second part introduces that company’s charitable donation information disclosure is not standardized. Firstly, the disclosure of company’s charitable donation information obeys the principle of voluntary.The disclosure of information is more freely.Secondly, the disclosure of information is limited and lacks uniformity.Finally, company lacks reviewing on information.The third part introduces that the company’s charitable donation’s supervision is not enough.Shareholders do not attach importance to the rights to monitor.It results in the supervisory role of the shareholders in the company’s charitable donation is not strong. Meanwhile,some companies and supervisors(Supervisory Board) also slack in the exercise of supervisory powers.It makes charitable donation’s supervision is not enough.At last,Third-party audit is missing.The fourth part introduces that the relief mechanism of shareholders’ rights in company’s charitable donations is imperfect.Chapter three systematically introduces how to protect the interests of shareholders in company’s charitable donations in foreign countries. This section describes how the United States, Canada and the United Kingdom to protect the interests of shareholders in company’s charitable donations.And then we know how to protect the interests of shareholders in company’s charitable donations in our country.Chapter four presents detailed ideas of how to protect the interests of shareholders in company’s charitable donations.In the aspect of decision-making mechanism,exact the decision-making body in company’s charitable donations,standardize decision-making process as well as regulate the fiduciary duty of directors.In the aspect of information disclosure, establish mandatory information disclosure system,clear and determine the contents of information disclosure, establish information disclosure exemption mechanism and carry out charitable donation information auditing. In the aspect of company’s supervision,we should strengthen the supervisory role of shareholders, strengthen supervisors(Supervisory Board) supervision and establish post-assessment system. In the aspect of judicial relief, give shareholders rights to filed request for revocation of donations mean defect lawsuit,to lift the request for revocation of the poor donation contract lawsuit,to lift the payment request to return the donate subject of a complaint to protect their legitimate interests.