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Enhancement and Protection of Shareholder Inspection Rights under the Revision of the Company Law

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DOI: 10.23977/law.2024.030218 | Downloads: 15 | Views: 181

Author(s)

Yitian Fan 1

Affiliation(s)

1 Zhongwen (Shanghai) Law Firm, Shanghai, 200120, China

Corresponding Author

Yitian Fan

ABSTRACT

The shareholder inspection rights to be informed, as the preliminary basis for exercising shareholder rights, is the cornerstone of the entire shareholder rights system, playing both a remedial and auxiliary role. [1] In this paper, we delve into the critical enhancement and protection of shareholder inspection rights in the wake of amendments to the Company Law in China. It scrutinizes the evolution and pivotal role of these rights in modern corporate governance, enabling shareholders to effectively supervise management and participate in decision-making. The study identifies challenges in the practical implementation of inspection rights, especially for minority shareholders in small to large companies, where issues like equity concentration and management obfuscation hinder transparency. Through a thorough analysis and international comparison, the paper proposes reforms to strengthen the legal framework around these rights, including improved shareholder education, standardized processes, enhanced information disclosure, and optimized corporate governance structures. This balanced approach aims to protect company interests while ensuring shareholder rights are respected, fostering a culture of accountability and transparency. The paper concludes with the potential of the Company Law revision as an opportunity to solidify shareholder inspection rights, enhancing corporate governance and equity in the corporate ecosystem in China.

KEYWORDS

Shareholder Inspection rights; Company Law Revision; Corporate Governance

CITE THIS PAPER

Yitian Fan, Enhancement and Protection of Shareholder Inspection Rights under the Revision of the Company Law. Science of Law Journal (2024) Vol. 3: 124-128. DOI: http://dx.doi.org/DOI: 10.23977/law.2024.030218.

REFERENCES

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[2] Beijing Chaoyang District People's Court. (2020). White paper on the protection of rights of minority shareholders in limited liability companies (2017-2020).
[3] Interpretation of the Supreme People's Court on the Application of the Company Law of the People's Republic of China (III), Article 24.
[4] Shanghai No. 2 Intermediate People's Court. (2020). Civil judgment document No. 8776 [Case No. 2020 Hu 02 Min Zhong 8776].
[5] People's Court of Hua'an County, Fujian Province. (2021). Civil judgment document No. 259 [Case No. 2021 Min 0629 Min Chu 259].
[6] Li Sheng, Xiao-feng Wu: "The shareholder's right to know" informed "stop?—from the same shareholders' right to know the case research of Shanghai (group), sohu news, ttp://news.sohu.com/20071021/n252765043.shtml, last access date: December 26, 2023.
[7] Supreme People's Court. (2020). Document No. 97 [Case No. 2020 Zui Gao Fa Zhi Jian 97].
[8] Intermediate People's Court of Huizhou, Guangdong Province. (2020). Civil judgment document No. 7661 [Case No. 2020 Yue 13 Min Zhong 7661].

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