Controlling Shareholders in Chinese Public Companies:Expropriation & Restraint Measures

Expropriation of controlling shareholders is a core issue of corporate governance throughout the world and the forward position of studies on theory of the corporate governance.Main means of expropriation of controlling shareholders in public companies of China indude misappropriating capital funds of the listed companies,trading with related party unfairly,manipulating dividend policy,and contributing untruthful capital.This article analyzes the causes of expropriation of controlling shareholders and gives relevant measures especially from these aspects such as establishing laws and regulations about minority investors,strengthening internal mechanism of corporate governance,perfecting capital structure and standardizing dividend allocation behavior.