Research On The Preferred Stock System Of My Country's Entrepreneurial Enterprises

Preference shares were produced in Europe in the 16th century,and more than 400 years later,the relevant theories and judicial practice were endless.In Western developed countries and regions,preferred stock financing is extremely flexible,has a wealth of practical experience,and has a relatively perfect legal system of preferred stock.In contrast to this,the preferred stock in our country has not received due attention and application,the academic community for many years failed to complete the system of preferred stock theory.In the judicial practice,because the preferred stock in China started late,companies,enterprises and other main use of its less,and in the use of preferred shares of the enterprise,there are still many problems,the disputes are more.In the legal provisions,China's"Company Law"does not clearly stipulate the preferred stock system,due to the absence of the law,making our company or business on the use of preferred stock is unable to face even“illegal”state,which for China's successful introduction of preferred stock system is extremely unfavorable.In view of this,this paper takes the entrepreneurial enterprise as the breakthrough point,adopts the comparative research method,the literature material method,the normative law analysis method and so on,carries on the method to apply the preferred stock in the entrepreneurial enterprise and how to construct the preferred stock system in our company law Detailed discussion.Based on the research of the preferred stock system of the venture capital enterprises in China,this paper uses the comparative research method,the literature data method and the normative law method to study the basis of the preference shares in China's venture enterprises and how to construct the preferred shares in the corporate law of our country To elaborate.Thispaperconsistsofthefollowingfourparts:The first part is mainly about the start-up business and preferred stock overview.Firstly,it defines the entrepreneurial enterprises and defines the classification and characteristics of the start-up enterprises.Secondly,it defines the preferred shares and expounds the connotation and characteristics of the preferred shares.The second part mainly discusses the necessity of applying preferred stock in China's venture capital enterprises.Firstly,it analyzes the influencing factors of the development of the venture enterprise,and thinks that the financing difficulty is the biggest problem faced by the start-up enterprise in the development process.Secondly,it expounds the value and significance of the preferred stock,advocates that the preferred stock is the ideal choice to get rid of the financing of the start-up enterprise.The third part mainly analyzes the existence of the preferred stock in China's venture enterprises and the feasibility of constructing the preferred stock system.First of all,from the practice,legislation and theory of the three levels of venture capital enterprises to apply the preferred stock analysis of the problem;followed by China's legal environment,market environment and preferred shares and venture capital,etc.from the perspective of venture capital enterprises to build preferred stock system The feasibility of the argument.The fourth part is mainly how to build the system of preferred stock in China's venture capital enterprises.Put forward in the venture enterprise to build the preferred stock system of specific ideas for the development of entrepreneurial enterprises to clear the obstacles and then promote the mechanism of pregnancy.This paper defines the scope of the start-up enterprise as two parts,namely,the first start-up enterprise and the second start-up enterprise,and through the analysis of the factors that affect the development of entrepreneurial enterprises that financing is the entrepreneurial enterprises on the road ahead of the biggest stumbling block.In order to solve the financing problem of the venture enterprise,the author thinks that the preferred stock is a strong starting point,and then the necessity and feasibility of applying the preferred stock to the start-up enterprise is proved.Finally,the author puts forward the concrete idea of constructing the preferred stock system in the start-up enterprise.First,in the choice of legislative model,it is suggested that the legislative model of the preferred stock system should be adopted by taking the legal legislation model as the main principle and the authoritative legislative model.Secondly,in the specific legislation construction,the definition of preferred stock,"Should adopt a more stringent,secure standards for its clear provisions on the preferred shares of the type of distribution,"Company Law"should be authorized by way of legislation required to clarify the articles of association,I suggest that the start-up enterprises can be used to accumulate,Redemption,convertible preferred stock for financing,the proportion of preferred shares issued,the"Company Law"may require the issuance of preferred shares shall not exceed the company's total share capital of 1/3,in the future development and then according to the actual situation gradually improve this Ratio,the dividend on the preferred shares,the use of cash in the company to make up for losses,the extraction of statutory provident fund before the distribution of ordinary shares before the payment of dividends,on the conversion of preferred shares,"Company Law"should allow the existence of convertible preferred stock,The terms and conditions of the conversion of the articles of association to the preferred stock,the conversion price and the conversion ratio As well as the nature of the conversion and other aspects of a clear;again in the start-up enterprises preferred stock system of special procedures,the"Company Law"issued by the company whether to set up preferred shareholders to provide clear provisions of the General Assembly,if the issuing company does not set up preferred shareholders meeting,The Company Law shall require the shareholders of the preferred shares to enjoy the class voting rights.If the issuing company sets up the general shareholders'general meeting,the Company Law shall require the articles of association to clarify the conditions,convenors,rules of procedure and the rights of the congress,Dividends of the distribution of dividends for the time,the"Company Law" should not be mandatory for each company to pay dividends of the time unified,but should be required to clarify the articles of association for the company's dividends owed and the source of dividends and other issues,Finally,in the specific implementation of venture capital system,from the market access,operational processes and information disclosure of three aspects of the proposal,that is,in terms of market access,the proposed"Company Law" on the "Venture capital issuance of preferred stock adopts approval system In terms of process,it is recommended start-ups by way of private placement of preferred stock issuance,information disclosure,information disclosure recommendations issued preference shares of start-ups mandatory provisions by the state.