Cao Zhongming: There Is Great Potential For Small Shareholders In The Battle For Control.

For the listed companies in the battle of control, the two sides consumed a lot of time and energy, which seriously affected the daily production and operation of the listed companies. If the struggle for control is in the long run, no matter whether the two sides compete, the listed companies or the small and medium investors will be losers. Because of the dispute over control, Changyuan group's fixed increase plan has been stranded, and the assets reorganization of Orient Silver Star has great uncertainty.

Of course, from industrial capital to frequent listing of listed companies, to seek to enter the board of directors or even control the right, also witnessed the development and progress of the Shanghai and Shenzhen stock market. However, the confrontation between major shareholders of listed companies can not be ignored by small shareholders. Even according to the existing laws and regulations, small and medium-sized shareholders can also make sound in the battle of control right of listed companies, so as to safeguard the interests of listed companies and their own.

Whether by increasing equity or acquiring more Board of directors In order to control the listed companies, all the bills must be held at the shareholders' meeting. In view of the fact that the two sides and the shareholders of the concerted operation are generally close to each other, the voting of the minority shareholders will decide which side will win. Obviously, the party who can protect the interests of listed companies and minority shareholders can get the favor of small and medium-sized shareholders.

Besides, Minority shareholders It is also possible to convene the provisional shareholders' meeting to express their wishes through the form of 10% shares. The 101st provision of the company law stipulates that the board of directors shall not perform or fail to perform the duties of convening the meeting of shareholders' general meetings. The board of supervisors shall convene and preside in time. The board of supervisors shall not convene and preside over it, and shareholders who hold more than ten percent shares of the company individually or collectively for more than ninety consecutive days may convene and preside by themselves. In response to the entanglement of the two major shareholders, Tibet pharmaceutical investors have called on small and medium-sized shareholders to form an alliance to raise 10% of the shares, thereby individually convening a temporary shareholders' meeting to end the fight for equity.

Minority shareholders can also enter the board of directors by sending representatives to influence the trend of the fight for equity. In the current board of directors of Shanghai and Shenzhen listed companies, there are directors and independent directors from major shareholders, and some directors of employees' representatives. However, there are no directors from minority shareholders. This is obviously not conducive to the improvement of corporate governance structure. Practice has proved that independent directors can not represent the voice of small and medium-sized shareholders, nor can they safeguard their legitimate rights and interests. The regulation of listed companies stipulates that in the election process of directors, the wishes of minority shareholders should be fully reflected. Because only the representatives of minority shareholders can enter the board of directors to truly reflect this "will". So, in the contention battle of related listed companies, a three stand pattern will be formed, and the party who is most beneficial to minority shareholders can finally gain control power of listed companies.

Of course, Minority shareholders To play a role in the battle for control of listed companies, we need to further enhance our awareness of rights protection and participate in the governance of listed companies and participate in decision-making on major matters, which is obviously a short board.