Protection of Minority Stockholders

The protection of minority stockholders is the key to capital market to develop healthily. In China,however,the controlling stockholders (major stockholders) often departure their fiduciary duty to minority stockholders and take advantage of the controlling over the list companies to aggrieve the benefits 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 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 must take steps to protect the investors,especially minority stockholders.