Case Study On Actual Controller's Illegal Reduction Of Shandong Molong Petroleum Machinery Co.Ltd.

The completion of the share-trading reform marks that China's stock trading has entered the era of full circulation,and the major shareholders of listed companies can freely trade non-tradable shares held through the secondary market on the premise of satisfying certain conditions.This means that on the one hand,major shareholders can exercise their right to trade in individual shares,and on the other hand,they will also influence their holding position.In the process of the development of China's securities market,in order to satisfy personal interests,some of the listed company's major shareholders have violated the rules and regulations by relying on their own information advantages and capital advantages in order to ensure that their holding position is not affected.Small and medium shareholders' equity.Although the China Securities Regulatory Commission has issued a number of systems to regulate,manage and restrict the major shareholder reduction behavior of listed companies,and also played a certain role,but in the securities market,there are still some advantages to use for their own interests in the securities market.The major shareholder,this behavior not only infringed on the legitimate rights and interests of small and medium-sized shareholders,but also adversely affected the stable development of China's securities market.How to regulate the major shareholder's shareholding behavior of listed companies and how to protect the rights of small and medium-sized investors from infringement is the key and key point of this paper.This paper takes the case of the illegal shareholding reduction of Shandong Molong's major shareholder as a case study,deeply analyzes the real reasons,operation methods and consequences of the major shareholder's violation of regulations,and deeply explores the violations of its major shareholders on the listed companies themselves and small and medium investors.The adverse effects,and thus the conclusions of this case study.Finally,the company itself,small and medium-sized investors and securities market regulators are proposed to rationalize,in order to regulate the majority shareholder reduction behavior,to avoid small and medium investors investment losses.Through the research,this paper finds that when the majority shareholder of Shandong Molong knows that the company's operating performance continues to perform poorly and the capital turnover is seriously difficult,in order to preserve its own property from damage,the illegal cash-out proceeds are borrowed from the related party subsidiaries.Reasons,using false statements,insider trading,illegal disclosure and other illegal means to carry out "precision" reduction,this violation has not only led to the company's stock price continued to fall,making the legitimate rights and interests of small and medium investors seriously infringed,but also on China's securities market The steady development has had a tremendous negative impact.