Some Considerations About Protection of Minority Stockholders

The protection of minority stockholders is the key for the capital market to develop healthily. In China, however, the controlling stockholders (major stockholders) often breach their fiduciary duty to minority stockholders and take advantage of the control over the list companies to aggresson the interests of minority stockholders. The causes include: the incompletion of transforming to corporation system, the lack of liquidity of stock equity structure, the lack of perfect corporate governance and practicable laws to protect minority stockholders, etc. We should take steps to protect the investors, especially minority stockholders.