Research On The Impact Of Large Shareholder's Reduction On Minority Shareholders' Rights And Interests

In September 2005,China's non-tradable shares reform was fully rolled out.This is a major event in the history of China's capital market development.It marks the elimination of the differences in the circulation system between non-tradable shares and non-tradable shares.China's capital market since then entered the circulation era.Prior to the non-tradable share reform,two-thirds of the equity of China's stock market could not be circulated,resulting in inequality between the shareholders of tradable shares and the non-tradable shareholders,that is,the rights of different shares of the same share.Unequal rights,the former usually use their own business management authority,against the interests of minority shareholders.After the split share structure reform,the vested interests of tradable shareholders are subject to certain protection.However,there are still situations in which shareholders 'unreasonable shareholding reduction causes the stock price of listed companies to fluctuate,which eventually leads to the loss of minority shareholders' interests.In this paper,from 2014 to 2017,the case of the reduction of the majority shareholder of the Royal Group is taken as the research object.The case-analysis method is the main method,and the literature research and the standardized research method are the supplement.The impact on the rights and interests of small shareholders.The results show that the profit taking is the main reason for the reduction of the largest shareholder.The main reason is that the major shareholder lowers the stake in the company,the value of the company is overestimated,and the company runs the business unsatisfactorily.Obviously,the result of major shareholders' reduction of shares is that the share price which is directly related to the interests of minority shareholders has dropped sharply,and the rights and interests of minority shareholders are directly affected by the reduction of major shareholders.The characteristic of this essay is that the author conducts a research and analysis on major shareholders' reduction as a new way to infringe the interests of minority shareholders.Finally,the paper puts forward some policy recommendations from the government,the legal system and the listed companies in order to regulate the behavior of the major shareholders,protect the rights and interests of the minority shareholders,and improve and develop the entire capital market.