How to empower minority shareholders: Chinese practice and literature review

Huihua He, Jing Chen and Junxiong Fang

Chapter 17 in Research Handbook on Corporate Governance in China, 2025, pp 338-358 from Edward Elgar Publishing

Abstract: Since China's capital market is mainly composed of minority shareholders, the protection of minority shareholders’ legitimate rights and interests is a research issue that deserves attention and continues to exist, with important theoretical and practical significance. What role do minority shareholders play in corporate governance? Based on the literature review in this research field, this chapter sorts out the main context and framework of the research on the traditional protection measures of minority shareholders and the role of minority shareholders in corporate governance. This chapter mainly discusses the following four aspects: (1) rationales for minority shareholder protection; (2) traditional protection measures for minority shareholders; (3) analysis of the key reasons that affect minority shareholders’ participation in corporate governance; (4) how minority shareholders in China participate in corporate governance. The purpose of this chapter is to remind us that we should pay attention to the important role played by minority shareholders in solving the Type II agency problem in corporate governance. We conclude the chapter by highlighting future research avenues and the practical importance of protecting minority shareholders’ rights in China.

Keywords: Minority shareholders; Corporate governance; Investor protection; Chinese practice (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035312603
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