The Study On The Ways And Problems Of Minority Shareholders’ Participate In Corporate Governance

In the case of the first kind of agency problem in foreign capital market,the second kind of agent problemis that conflict of interest between the small shareholders and the major shareholders is more serious.Events that the major shareholders violate the minority shareholders’ rights through various ways happen frequently,So how to solve the second type of agency problem is becoming a hot topic in academic research.In the past,minority shareholders prefer to choose "vote with their feet" because of the costs of voting,information asymmetry and so on,so in corporate governance they are regarded as "free riders" or "cold voters." As the government introduced a series of laws and regulations to encourage minority shareholders to participate in corporate governance and the capital of minority shareholders is increasing,more and more minority shareholders participate in the corporate governance through the "hand vote",so why have they changed? How did they participate in corporate governance and What needs to be improved?On the study of Gree Electric Appliances,the reasons of minority shareholders to participate in corporate governance are damages of the minority shareholders’ rights because of private placement of Gree Electric,the doubts of Zhuhai Yinlong,the obstacles to diversification strategy of Gree Electric,and the advantage of voting by minority shareholders.The ways of minority shareholders to participate in corporate governance are the use of system of avoid to voting rights,using the public opinion to cause the attention of regulators,minority shareholders united,voting by the Internet,collecting and processing information through the Internet.At present,the problems of minority shareholders to participate in corporate governance are the limites of minority shareholders’ rights,the lack of professional knowledge to minority shareholders,lack of risk awareness,can not get the actual informations of company timely and the high costs.Finally,the suggestions are expansion of the rights of minority shareholders properly,enhanceing the professional knowledge of minority shareholders properly,encouraging minority shareholders to set up the board of directors to participate in corporate governance and strengthening the establishment of network voting platform to increase the transparency of information.