The Behavior Of Controlling Shareholders Abusing The Control Right Legal Regulation

In modern corporate governance,it is not uncommon for the controlling shareholder to abuse control to infringe on the interests of the company and other related entities.The regulation and supervision of the exercise of the controlling shareholder’s power has always been a problem that we need to solve better.The controlling shareholder holds the control of the company based on the dominant position of the equity and determines the decision-making direction of major issues in the company.In a complex market environment,whether the controlling shareholder can exercise his or her control rights in a reasonable manner to maximize the interests of the parties and the interests of all parties is a certain moral hazard.In addition,there is a lack of perfect legal regulations.The exercise of shareholder control is even less effective.The promulgation of the Supreme People’s Court on the interpretation of the"Company Law of the People’s Republic of China"(4)(hereinafter referred to as"the judicial interpretation of the company law(4)")further strengthens the protection of shareholders’rights,but the control of the controlling shareholders of China.There are still many problems in regulation that need to be studied and resolved.This paper analyzes how to more effectively regulate the abuse of control of controlling shareholders from the aspects of corporate governance mechanism,protection of other minority shareholders’rights and interests of creditors and protection of creditors’rights.The first part briefly introduces the relevant definitions of controlling shareholders and the criteria for defining abuse of control.The second part sorts out the common expressions of controlling shareholders’abuse of control rights to damage the company and minority shareholders and creditors’rights,and analyzes the current situation due to the imbalance of China’s shareholding structure,the principle of capital majority decision,and the imperfect corporate governance structure.The main cause of the problem of rights and the consequences of damage.The third part analyzes the current situation of China’s current legislation on the control of controlling shareholders,and analyzes the shortcomings of it,so as to put forward the suggestions based on the problem.Finally,the fourth part analyzes the lack of regulation in China’s control over the controlling shareholder’s control,and draws on the relatively mature experience of foreign countries,and proposes perfect suggestions from the aspects of corporate governance mechanism,minority shareholders and creditor’s rights protection,in order to enable the controlling shareholder.The exercise of control can be better guided and regulated.