The Importance of Voting Trust for Securing Shareholders Protection in Chinese Corporations

Abstract

The focal point of this paper is concentrated on identifying the problems faced by shareholders in the Chinese corporations due to the issues of shareholder activism; tunneling and other grave problems which are linked to the unwarranted incidents faced by corporations due to uncertain events. In doing so, this paper will shed light on the important corporate body such as, voting trust system the adoption of which, has already proven its worth in the corporate sectors of other developed countries. Hence, it is discussed in the paper as to how the inclusion of same mechanism could work as a solution for shareholder protection in the Chinese Corporate sector which could potentially assist China in becoming the top corporate player of today’s modern corporate world.

Keywords:voting trust, shareholders abuse, minority shareholder protection, shareholders activism, company law

DOI: 10.7176/JLPG/131-06

Publication date: April 30^th 2023