The Benefits of Voting Trust System in the Current Corporate Governance of China

Abstract

The inclusion of a shareholder voting trust system in China is an important, yet absent, feature of modern corporate sector. Despite its necessity, it seems that no proper notice of its nonexistence has been taken in the past nor has any attention been paid to this particular area in previous decades. Since China lies among the top corporate players of the world, there is a need for increased trust from the general public to invest in the current corporate sector. It is the position of this paper that the most practicable way of achieving this goal is to introduce a shareholder voting trust system. Therefore, this paper shall focus on all the advantages that voting trust systems have provided in the corporate world and how similar systems could potentially be introduced into the Chinese corporate system.

Keywords: Voting Trust, Minority Shareholders Protection, Corporate Governance,

DOI: 10.7176/JLPG/104-07

Publication date: December 31^st 2020