Study On Interest Occupation Behavior Of Controlling Shareholder Of Zangge Mining

The continuous improvement of the capital market system has provided a good financing environment for more enterprises to successfully list,but at present,there is a general concentration of equity in small and medium-sized enterprises,which provides favorable conditions for the controlling shareholders of enterprises to smoothly implement the interest encroachment.Although the regulatory authorities have paid more and more attention to the supervision of the misappropriation of the interests of major shareholders,and the system has become more and more perfect,the misappropriation of interests is still prohibited.The frequent occurrence of interest encroachment not only infringes on the interests of the company and small and medium-sized shareholders,but also disrupts the normal trading order of the capital market.Since the completion of the backdoor listing,Zangge Mining Co.,Ltd.(hereinafter referred to as "Zangge Mining")has received inquiry letters and letters of concern from the certificate meeting 15 times,and some of the inquiry letters have more than 20 questions,indicating that the company has problems in operation.In addition,because the company’s controlling shareholders occupied a large amount of funds and the company did not disclose the acts of misappropriation of the company’s interests,the company’s audit report opinions in 2018 and 2019 were "qualified opinions" and "unable to express opinions".It is not common in the capital markets for an annual report to be issued by a firm that cannot express an opinion,so this article selects the company as a case study subject.First of all,this study introduces the research background and significance,sorts out the relevant literature at home and abroad,and sorts out the relevant theories to a certain extent.Secondly,it introduces the history,shareholding structure and business status of Zangge Mining Company,and briefly describes the process of the controlling shareholder’s misappropriation behavior,including the audit of the act by the certified public accountant and the relevant penalties and follow-up of the CSRC,as well as the analysis of the reasons why the controlling shareholder can carry out the interest encroachment,focusing on the analysis of the way the controlling shareholder implements the interest encroachment.Finally,the impact of this behavior on the company’s ability to continue to operate is briefly described,and the consequences of the benefits of minority shareholders are analyzed.The study found that the controlling shareholder mainly embezzled interests by providing guarantees for the false business of related parties,withholding payments and misappropriating bills for discounting,pledge cash-out,injecting inferior assets into the company,and conveying through related party transactions.In the end,it was found that the encroachment of the interests of the controlling shareholder led to a decline in the company’s ability to continue to operate,resulting in a decline in the company’s stock price,which seriously affected the interests of the company’s minority shareholders.It is revealed that the company needs to optimize the company’s shareholding structure,increase the penalties for violations,and improve the internal control system.