Research on the Flaws and Improvements in the Protection of Rights and Interests of Small and Medium Shareholders under the Background of China’s New ‘Company Law’

Purpose - China’s new ‘Company Law’ will be officially implemented. As an important task in the development of the company, the protection of the legitimate rights and interests of the company’s small and medium-sized shareholders cannot be ignored in the revision of the ‘Company Law’. Design/Methodology/Approach - This article takes the protection of the legitimate rights and interests of small and medium-sized shareholders in China as the main research object. It first briefly describes the importance of protecting the legitimate rights and interests of small and medium-sized shareholders in China, and then analyzes in detail the major reasons why the legitimate rights and interests of small and medium-sized shareholders in China are vulnerable to infringement. Findings - Jiang Bing (2022) believes that the revision of the ‘Company Law’ in 2005 made important supplements to the protection of the rights and interests of small and medium-sized shareholders. However, despite improvements, the current ‘Company Law’ still has flaws in protecting small and medium-sized shareholders, such as the lack of legislative procedures. Research Implications - Luo Xiang (2022) believes that although China’s ‘Company Law’ has added relevant rights and interests protection provisions for small and medium-sized shareholders, there are certain limitations in actual implementation, which makes it difficult for the rights and interests of small and medium-sized shareholders to be protected normally, which is detrimental to enterprise development and market stability. This article is very unfavorable.