Application of Shareholders Inspection Right and Restriction of Legitimate Purpose

In modern companies,the separation of the investor's ownership from the management lead to the situation that the company is managed by the managers instead of the shareholders,and investor have no knowledge of the company's daily operations.So asymmetric information comes into being,which results in tensions between shareholders and managers.Besides,shareholders' inspection right stems from its membership,so it is the individual right that shareholders should have.Inspection right,as the right for shareholder to pariticipate in the management and achieve the business purposes,means shareholders' right to know about the company's situation.In this three-party interests game among shareholders,companies,and managers,how to choose and design the query right system in order to obtain the equilibrium is a problem which we have to think about.