The Encroachment Of Interests And Risk Prevention Of Controlling Shareholders’ Equity Pledge

At present,our country’s economy is advancing steadily.Improving the financial supervision and management system and preventing the outbreak of systemic financial risks have become the primary considerations for steady and steady economic work.The difficulty of financing for private enterprises in my country is a common topic,and financing through equity pledge is convenient,fast and efficient,and has gradually become the best choice for listed companies in financing.Controlling shareholders are the main force in the booming stock pledge market.However,its hidden dangers surfaced in a plunge in the A-share market in 2018.No shares and high-proportion pledges have become a hot topic in the market,which should also attract the attention of relevant departments.Although the controlling shareholder’s equity pledge is its own behavior,it will have a significant impact on other external investors and the value of the company.Preventing the negative impact and risk hazards brought by the equity pledge has become the top priority of the research.This article uses case analysis to study the equity pledge of Kangde’s controlling shareholder,Kangde Group,and analyzes the means of interest encroachment under Kangde Group’s equity pledge from different perspectives,and finds that if a high proportion of equity pledges,the degree of separation of the controlling shareholder’s rights will change.If it is high,the cost of violation of the violation of the interests is lower,thereby completing the controlling shareholder’s attempt to transfer the interests of the listed company and hollow out the company.It is true that since equity pledge can be widely accepted by the capital market,it must have its advantages,but its risks and hidden dangers should be highly valued.In fact,in developed countries with a sound legal system related to equity pledge in the West,cash flow rights are transferred at the same time control rights are also transferred.However,after the pledger transfers his equity to the pledgee,it only transfers it.Corresponding cash flow rights,while recovering part of the investment cost,the control rights are not affected.This gives the controlling shareholder an opportunity to infringe the interests of ordinary small and medium-sized investors through various means and hollow out the superior company.Therefore,the relevant legal system of equity pledge in my country also needs to be improved,and the awareness of protecting the rights of other external investors also needs to be improved.