Research On The Impact Of ST Xintong's Major Shareholders' Interests Infringement And Countermeasure

With the rapid development of Chinese finance and real economy,more and more small and medium-sized enterprises publicly issue shares in the capital market,which is more prosperous and diversified.At present,the laws and regulations concerning embezzlement of interests of major shareholders have been gradually improved and perfect,but it still occurs from time to time,causing serious damage to listed companies and small investors,at the same time,it also causes an extremely adverse effect on the development of our capital market.Therefore,it is of great theoretical and practical significance to analyze the encroachment and its influence on the interests of the major shareholders in listed companies and give corresponding countermeasures and suggestions.Most of the existing research literatures on major shareholders’ encroachment are carried out through empirical methods.For case studies,there are relatively few literatures that carry out in-depth analysis from the perspectives of encroachment means,reasons and influence of encroachment and give corresponding countermeasures.In view of this,this paper adopts the methods of literature research,qualitative and quantitative analysis and case analysis to conduct an in-depth study on the means,causes and influences of the interest encroachment of the major shareholders of ST Communication.In the research process,based on the relevant theories of control,principal-agent,asymmetry and so on,the paper analyzes the internal control system and the company’s property rights system of ST Communication,and starts with the excessive concentration of shareholders’ equity and corporate governance mechanism of listed companies.From the perspective of internal control defects,external governance mechanism loopholes and audit supervision,the specific reasons for the encroachment of interests of major shareholders of ST Communication are analyzed.The research results show that: under the control of major shareholders,ST Xin Tong seriously encroached on the interests of listed companies by illegally providing guarantees to other companies,not disclosing according to law,non-affiliated enterprises holding a amount of capital,and unfair asset acquisition,and caused damage to minority shareholders and other investors.Further,this paper reduces the shareholding ratio of major shareholders,increases the share of minority shareholders,and promotes the diversification of their investment structure.The general meeting of shareholders of the company shall earnestly fulfill the legal power,standardize the decision-making mechanism of the board of directors of the company,endow the independent directors with legal power,and take timely remedial measures for their defects;Endow the board of supervisors with legitimate power,so that it can really exercise its power and play a better supervisory role;Improve the external supervision system of the company,make it adapt to the corporate governance structure,accounting firms in the audit process,adhere to the independence and objectivity,reflect the professional quality,improve the quality of audit work;CSRC will increase the punishment,make regular spot checks on the audit situation and publicize it,and establish a credit record mechanism for audit supervision.Give play to the role of institutional investors and other aspects of the corresponding countermeasures and suggestions.