Legal Regulations On Mutual Shareholding Among Companies

Since the 1990 s,cross shareholding has emerged in China,from germination to vigorous development.Under the background of reform and opening up,enterprises face economic development,making cross shareholding more and more common.Cross shareholding has a history of several decades,but the relevant laws in China have been in a blank state.The first chapter introduces the overview of cross shareholding,the second chapter discusses the advantages and disadvantages of cross shareholding.Although there are many advantages of cross shareholding,for example,it can expand the business scale to make the company stronger,improve the economic benefits of the company,reduce the transaction costs and share the corresponding risks,and at the same time,it can prevent malicious acquisitions,but it brings many fatal defects.For example,it is easy to form monopoly to restrict competition,thus destroying the stability of the market,at the same time,it may also damage the fair trading of the securities market,may also bring chain debt crisis or even chain bankruptcy,and may also cause weakening of shareholders' rights and interests.The third chapter seeks to regulate the cross shareholding in our country by the way of foreign comparative law.Because the phenomenon of cross shareholding has appeared in foreign countries as early as more than 100 years ago,at the same time,its laws and corresponding mechanisms have been quite mature,which can also be helpful for our country to learn the relevant experience of cross shareholding.The fourth chapter discusses the current situation of cross shareholding in China,mainly based on the typical cases to analyze the current situation and the lack of legislation.The fifth chapter puts forward suggestions according to the disadvantages of cross shareholding and the legal defects of the current situation of cross shareholding in China.Due to the increasing number of cross shareholding enterprises and the current situation of company law,in order to avoid the disadvantages of cross shareholding,how to regulate cross shareholding has become an urgent problem.