Research On The Shareholder Voting Trust System

With the rapid expansion of capital,the number of shareholders increases,the shareholder system becomes very complex,and the shock equity is more and more dispersed.Compared with the single investment purpose of the traditional company shareholders,the investment purpose of the shareholders now becomes diversified.Under this background,the control right of the company is easy to be dispersed,resulting in the instability of the company’s shareholding structure,and ultimately leading to the change of ownership,which hinders the long-term and stable development of the company.As early as last century,the United States established the shareholder voting trust system on the basis of the traditional trust by taking advantage of the close relationship between voting rights and corporate control,and used the system to administer and control the company,providing impetus for the long-term stable development of the company.However,there are some defects in the shareholder voting trust system itself.If the system is implemented without restrictions,fraud or monopoly will occur,which is also an important reason why the American legal community once made the system invalid.However,after the test of time,the advantages of the shareholder voting trust system were once again discovered by American judges and scholars,and the re-application of the system provided a new impetus for Corporate governance in the United States.At present,the shareholder voting trust system has been incorporated into the statute law in the United States and has been continuously improved,finally becoming an important system in the American legal system.Since China’s integration with the international market,many companies began to use shareholder voting trust to solve the problem of capital shortage and maintain the stability of equity structure,and achieved remarkable results.Although the shareholder voting trust plays a positive role in the operation and development of the company,any system is a double-edged sword.While it brings benefits to the company and shareholders,if it is applied without regulation,it will inevitably cause troubles to the company and shareholders.When China introduces the shareholder voting trust system,the system will be avoided the passive sides and advocated the positive sides by legislation.The shareholder voting trust system has not been included in our country’s written law,and the lack of law makes the shareholder voting trust system unable to give full play to its own advantages,now.Although there is still a big dispute about the introduction of shareholder voting trust system in China,the comprehensive analysis of the advantages of the introduction of shareholder voting trust system for China’s corporate governance and even economic development outweigh the disadvantages,so it is imperative to formulate legislation of shareholder voting trust.This paper makes,including five parts,a comprehensive analysis of the shareholder voting trust system.Making use of comparison studying method,case studying method and paper studying method illustrated that our country introduced shareholder voting trust system of superiority in our future economic development and what we have obstacles under the current background and to explore the legitimacy and necessity for the introduction of the system at the present stage in China,based on the analysis of the proposed relevant in building shareholder voting trust system in China shall pay attention to the problem,and puts forward legislative suggestions.In the first part,the author firstly introduces some cases of shareholder voting trust system in China and analyzes the significance of introducing this system.Secondly,it mainly introduces the research of domestic and foreign scholars on the shareholder voting trust system.Finally,it includes the main study methods and thematic structure of paper.In the second part,firstly,shareholder voting trust system’s meaning and characteristics is introduced.Secondly,this system is compared with others voting rights system and differentiated voting rights system to compare and analyze the advantages of shareholder voting rights trust system compared with other systems,so as to emphasize the importance of introducing this system.In the third part,firstly,introduces the whole development process and current legislation of the shareholder voting trust system in common law countries.Secondly,it summarizes the attitudes of relevant experts and scholars in other civil law countries and regions towards the shareholder voting trust system,in the life,how the system play a pivotal role in the business governance around the some countries as well as what regulation are made in these countries’legislation.Finally,by studying the theory and practice of the shareholder voting trust system in different legal system countries,we can learn from the experience and lessons,and lay a solid foundation for the introduction of this system in China.In the fourth part,first of all,it expounds the scholars’ doubts on the existence of shareholder voting trust system,such as whether voting right can be separated from equity,whether voting right can become the object of trust,whether voting trust violates the principle of "one thing,one right" and other theoretical issues.Secondly,the paper makes a theoretical analysis of the legitimacy of the introduction of the shareholder voting trust system in China in view of the questions raised by relevant scholars.Finally,it discusses the significance of introducing shareholder voting trust system to the development of Chinese companies,such as protecting the interests of minority shareholders,promoting company financing,maintaining stable operation of the company and promoting the development of charity.In the fifth part,on the basis of the above four chapters on the systemic introduction of shareholder voting trust system,comprehensive analysis,put forward the basic legislation about building shareholder voting trust system architecture,main to begin from the following several aspects:first,shareholder voting rights must possess the qualifications and have the rights and duties;Secondly,the voting trust system is set up and establish needing of conditions.Third,the voting trust system’termination and the legal consequences after the termination;Fourthly,the possible disadvantages of the system should be regulated in other laws so as to give full play to its greatest advantages in practical application.