Study On The Transfer Of Interests Of Major Shareholders In Related Mergers And Acquisitions

As there is a "dominant" and information asymmetry of the situation existing in the current listed companies in China,making the phenomenon of tunneling more and more serious,the interests of minority shareholders are encroached seriously by the major shareholders.In view of this,China's "Company Law" has set a series of of relevant legal system about norms of major shareholders integrity obligations,limiting the internal transactions and diluting the major shareholders of the daily control to restrict the interests of major shareholders to carry out effectively.However,due to the diversity of interest transmission routes and the inherent lag of laws and regulations,the relevant system can only alleviate the emptiness of large shareholders to a certain extent,and there is no way to eliminate this problem from the root causes.Related Party mergers and acquisitions are one of the related party transactions which is most commonly used means of delivery of major shareholders.As the relevant departments can not accurately identify them,their punishing measures often lags behind the interests of large shareholders,so that the phenomenon of China's listed companies' tunneling in the associated acquisition frequently happened.This paper explore the process of Bairun shares Related Party mergered and acquired Bacchus wine industry by the way of the combination of theoretical analysis and case analysis,and makes a systematic analysis of the related M & A behavior with the ultimate goal of profit transfer: analyzing the process of the related party merger and acquisition and tunneling,and the impact of tunneling on the listed companies,minority shareholders,creditors,and providing some suggestions for the government,the relevant regulatory authorities and minority shareholders about how to prevent the tunneling.In this paper,it is found that there are some theoretical links between the Related Party mergers and acquisitions and the tunneling of the major shareholders,but also there is a certain basis in the reality,so in practice,Related Party mergers and acquisitions are often easy to become an important channel for the tunneling of large shareholders.Through the study of case,it enriches the theoretical system of the listed companies' interest distribution channels in the process of related party mergers and acquisitions,and provides the theoretical basis for the relevant departments to formulate the related supervision system and the minority shareholders to do the self-protection in the process of Related Party mergers and acquisitions.