Analysis and Prospect of the Protection Mechanism of Minority Shareholders

Minority shareholders are an important part of the company, and protecting their rights and interests is of great significance to maintaining the stability of the company and promoting the development of the market. Ensuring the protection of the rights and interests of minority shareholders is not only an important indicator to evaluate the business environment, but also an important aspect of building a law-based business environment. The root cause of the damage of minority shareholders' equity lies in the abuse of majority power and the inherent nature of the company. Fundamentally, this problem stems from differences in social status, leading to differences in interests. In practice, minority shareholders are usually vulnerable to infringement because they do not directly participate in the operation of the company or in their disadvantaged position in the organizational hierarchy. However, as an important participant and investor of the company, minority shareholders should enjoy equal operating rights and dividend distribution. This requires greater protection at the legal level, and minority shareholders also need to improve the internal level of self-reflection. Externally, society needs to actively promote legal measures that to minority shareholders. Internally, minority shareholders need to actively participate in the operation of the company, and make reasonable use of the company's articles of association to safeguard their own rights and interests. This paper analyzes the practical dilemma of the maintenance of the interests of minority shareholders, and then starts from the maintenance plan of minority shareholders in the third Review draft of the revised Company Law, and provides ideas for minority shareholders to explore the way to break through the dilemma.