Research On The Introduction Of Double-Tier Equity System In China

The stability and prosperity of the economy depends on the legal system as the superstructure,and the construction of the legal system is based on the development of the economy.In order to ensure the long-term development of the economy,the legal system that emerges as the times require that the state,as the legislature,update the system construction in a timely manner and introduce and construct advanced systems.Under the current stock ownership system in China,if a joint stock company wants to go public for financing,it has to face the risk of dilution of stock ownership,deprivation of control and hostile takeover.The double-tier stock ownership system is undoubtedly the best choice to avoid such a situation with its institutional advantages.This paper is mainly divided into four parts.The first part analyses the problems existing in the existing stock ownership system in China,and the development and limitations of the foreign stock ownership system,in order to reflect on the stock ownership system in China,and puts forward the viewpoint of this paper.Based on the development of China’s capital market and the lag of the stock ownership system,China should introduce the double-tier stock ownership system.The second part of this article mainly makes a detailed analysis of the rationality of the establishment of the system in our country.The establishment of a system must have its value superiority over the existing system.This part makes a thorough analysis of the rationality of the construction of the double-tier equity system in our country from four aspects in order to demonstrate the unique value of the double-tier equity system relative to the original equity system.The third part of this paper is mainly about the feasibility analysis of introducing double-tier equity system in China.This part mainly discusses two aspects.First,the actual needs of the capital market and the introduction of successful historical cases,in order to prove that it is feasible to construct double-tier equity system in China from the development and demand of the capital market,and secondly,the research on the legislation of our country,in order to demonstrate the structure of our country.There is room for legislation to establish a double-tier equity system.The fourth part of this paper is mainly about the specific measures of system construction,mainly from the detailed rules of legislation and the construction of the protection mechanism for the interests of small and medium-sized shareholders.Because of the inherent risk of abuse of control rights in this system,the investor protection mechanism should be constructed from both supervision and relief.Strengthening internal supervision and standardizing external supervision are the effective basic guarantee for the operation of the dual-tier equity system,such as the shareholder reward and punishment mechanism of internal supervision,the more stringent restriction of articles of Association and the independent director system of external supervision,the system of prohibition period,etc.are all for investment.The legal rights and interests of investors and small and medium-sized shareholders are well protected;relief measures are the last barrier for investors’ protection.The establishment of new and efficient relief measures will greatly improve the protection status of investors in China’s securities market,reduce the cost of investors’ rights protection,and activate the capital market.The legislative measures are more detailed,from the legislative path,principles,subject and scope,transfer rules and other aspects of specific elaboration.In order to build a complete and effective system to play its utility value.