Protection of minority shareholders after the New Company Law: 26 case studies

Abstract

Purpose

The paper aims to discuss the amended provisions relating to protection of minority shareholders (PMS) in the newly amended Chinese Company Law and evaluate whether it adequately protects the interests of minority shareholders.

Design/methodology/approach

In total, 26 cases will be examined by discussing the characteristics of the relevant parties involved, specifically plaintiffs, defendants, their lawyers, judges and also the grounds of complaint. A comparison will be made between the cases decided by following the first Company Law (1994) and the cases decided in accordance with the newly amended Company Law (2006).

Findings

The findings indicate that the amended Company Law has removed certain drawbacks in PMS present in the first Company Law (1994) but the New Company Law can protect interests of minority shareholders only to a certain extent. Further amendments are still needed.

Originality/value

This is one of the first studies to actually examine the implementation of PMS‐related provisions in the newly amended Company Law.

Citation

Wei‐qi, C. (2010), "Protection of minority shareholders after the New Company Law: 26 case studies", International Journal of Law and Management, Vol. 52 No. 4, pp. 283-308. https://doi.org/10.1108/17542431011059340