By Yuan Dongming & Sun Ganghong, Research Team on “The Development of Mixed Ownership Economy”, DRC

Research report No.173, 2017 (Total 5248) 2017-12-11

Abstract: At present, there are three prominent problems relating to the property rights protection of mixed-ownership enterprises in China, namely de facto disparities in the rights owned respectively by state-owned major shareholders, minority shareholders and employee shareholders, disparities in the judicial protection between state-owned property rights and non-state-owned property rights, and insufficient protection for employee stockholding in mixed ownership enterprises. These problems have dampened the enthusiasm of the non-state-owned capital to participate in the mixed ownership reform of state-owned enterprises, and failed to promote the transformation of the operation mechanism of the mixed-ownership enterprises, which is not conducive to the development of mixed ownership economy. To address these issues, it is suggested that the government should weaken the investors’ identity, and amend the relevant provisions of the Criminal Law to promote the criminal justice reform for providing equal protection for property owners; flesh out the relevant provisions of Company Law on share issuance and allow companies to set up category stocks and dual share structure to attract more investors with different preferences; supplement the provisions of the Company Law on the transfer of shareholdings and expand the application of the system of the claim for share repurchase of dissenting shareholders; formulate "Regulation Guidelines" for mixed-ownership enterprises to help enterprises fully utilize the enterprises’ regulations to protect the interests of minority shareholders.

Key words: mixed-ownership, property rights protection, minority shareholders