The Analysis of the Current Situation of the Protection of Minority Stockholders’ Rights and Interests in Public Companies and the Countermeasures

The Idle funds held by minority stockholders of public companies are important sources of funds in the securities market, so it is of great practical significance to strengthen the protection of their interests. In practice, the abuse of dominant position by the controlling stockholders of public companies and the defects in corporate governance structure lead to frequent infringement of the rights and interests of minority stockholders, and the defects of the justiciable clauses in the company law bring obstacles for minority stockholders of public companies to seek relief. Based on this, the paper puts forward some ideas on the protection of the rights and interests of minority stockholders in public companies from three aspects: endowing the controlling stockholder with the duty of good faith and strengthening the director’s duty of loyalty, improving the voting mechanism and cumulative voting system and other governance structure, and improving the system of flaws decision litigation and stockholder representative litigation, so as to enrich the relevant theory and practice of the protection of the rights and interests of minority stockholders in public companies.