Chen Jie: The Demands of and Approaches to Shareholding and Exercise of Shareholders’ Rights

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The Forum on Deepening Shareholding an Exercise of Shareholdings’ Rights, organized by China Securities Investor Services Center, was held in Beijing on November 26, 2018. At the forum, Professor Chen Jie, Head of the Commercial Law Department of CASS Law Institute and a member of the Expert Committee of China Securities Investor Services Center, gave a speech in which she expressed the following opinions on the demands of and approaches to shareholding and the exercise of shareholders’ rights. Shareholding and exercise of shareholders’ rights has four demands: first, to increase the specialization and authority of investor services centers’ shareholding and exercise of shareholders’ rights; second, to further increase the breadth and depth of shareholding and the exercise of shareholders’ rights; third, to strengthen investor services centers’ capacity for allocating resources of shareholding and exercise of shareholders’ rights; and fourth, to actively explore and innovate the mode of shareholding and exercise of shareholders’ rights. With regard to the concrete approaches to shareholding and the exercise of shareholders’ rights, they can be divided into three levels: at the first level are the relevant laws and regulations. The Securities Law must clearly provide for the purposes and form of investment service centers, the authorization, support and safeguarding of shareholding and the exercise of shareholder’s rights by the Securities Regulatory Commission; at the level of the Company Law, it is necessary to establish some special rights of investment service centers as public interest shareholders; at the second level are institutions. Investment service centers should adopt systematic and in-depth internal rules on the scope and method of shareholding and exercise of shareholders’ rights, as well as the procedure of exercise of specific rights; at the third level are supporting and coordinating systems. At this level, it should be emphasized that invest service centers consist a subsystem of the investors protection system. They have a unique function in the system of Securities Regulatory Commission system that is different from that of other organizations and conducive to giving full play to its own role.