The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy

Ali Raza Ansari; Alexandra Jane Davis; Kashif Imran Zadi

doi:doi:10.11648/j.ijber.20200904.25

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The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy

Ali Raza Ansari, Alexandra Jane Davis, Kashif Imran Zadi

Published in International Journal of Business and Economics Research (Volume 9, Issue 4)

Received: 18 July 2020 Accepted: 12 August 2020 Published: 19 August 2020

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Abstract

Shareholder voting trusts have had a huge impact on the world as an important device for the protection of shareholders and corporations alike. However, this instrument is missing in the corporate sector of China – one of the world’s leading economies. In Part 1, this paper looks at the history of voting trust systems and the path toward legality. Historically, voting trusts were challenged by corporations and majority shareholders before the Court realized the public benefits of shareholder trust agreements. Part 2 uses examples of voting trust systems in other countries to demonstrate its necessity for the well-being of China’s corporate system. On the one hand, voting trusts are required for the protection and faith of shareholders and their participation in the market. One of the biggest threats to public participation in investment is lack of protection for minority shareholders. On the other hand, as a corporate safeguard, voting trusts provide an avenue for minority shareholder voices to be heard and prevent corporate dissolution resulting from majority shareholder activism or hostile takeover. Consequently, for China to reach its ultimate goal of becoming the world’s largest economy and “Made in China 2025,” establishment of a voting trust system within the Chinese corporate sector is essential.

Published in	International Journal of Business and Economics Research (Volume 9, Issue 4)
DOI	10.11648/j.ijber.20200904.25
Page(s)	282-287
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Voting Trust, Minority Shareholders Rights, Corporate Law, Chinese Economy

References

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APA Style

Ali Raza Ansari, Alexandra Jane Davis, Kashif Imran Zadi. (2020). The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy. International Journal of Business and Economics Research, 9(4), 282-287. https://doi.org/10.11648/j.ijber.20200904.25

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ACS Style

Ali Raza Ansari; Alexandra Jane Davis; Kashif Imran Zadi. The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy. Int. J. Bus. Econ. Res. 2020, 9(4), 282-287. doi: 10.11648/j.ijber.20200904.25

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AMA Style

Ali Raza Ansari, Alexandra Jane Davis, Kashif Imran Zadi. The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy. Int J Bus Econ Res. 2020;9(4):282-287. doi: 10.11648/j.ijber.20200904.25

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@article{10.11648/j.ijber.20200904.25,
  author = {Ali Raza Ansari and Alexandra Jane Davis and Kashif Imran Zadi},
  title = {The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {4},
  pages = {282-287},
  doi = {10.11648/j.ijber.20200904.25},
  url = {https://doi.org/10.11648/j.ijber.20200904.25},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200904.25},
  abstract = {Shareholder voting trusts have had a huge impact on the world as an important device for the protection of shareholders and corporations alike. However, this instrument is missing in the corporate sector of China – one of the world’s leading economies. In Part 1, this paper looks at the history of voting trust systems and the path toward legality. Historically, voting trusts were challenged by corporations and majority shareholders before the Court realized the public benefits of shareholder trust agreements. Part 2 uses examples of voting trust systems in other countries to demonstrate its necessity for the well-being of China’s corporate system. On the one hand, voting trusts are required for the protection and faith of shareholders and their participation in the market. One of the biggest threats to public participation in investment is lack of protection for minority shareholders. On the other hand, as a corporate safeguard, voting trusts provide an avenue for minority shareholder voices to be heard and prevent corporate dissolution resulting from majority shareholder activism or hostile takeover. Consequently, for China to reach its ultimate goal of becoming the world’s largest economy and “Made in China 2025,” establishment of a voting trust system within the Chinese corporate sector is essential.},
 year = {2020}
}

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TY  - JOUR
T1  - The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy
AU  - Ali Raza Ansari
AU  - Alexandra Jane Davis
AU  - Kashif Imran Zadi
Y1  - 2020/08/19
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200904.25
DO  - 10.11648/j.ijber.20200904.25
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
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PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.ijber.20200904.25
AB  - Shareholder voting trusts have had a huge impact on the world as an important device for the protection of shareholders and corporations alike. However, this instrument is missing in the corporate sector of China – one of the world’s leading economies. In Part 1, this paper looks at the history of voting trust systems and the path toward legality. Historically, voting trusts were challenged by corporations and majority shareholders before the Court realized the public benefits of shareholder trust agreements. Part 2 uses examples of voting trust systems in other countries to demonstrate its necessity for the well-being of China’s corporate system. On the one hand, voting trusts are required for the protection and faith of shareholders and their participation in the market. One of the biggest threats to public participation in investment is lack of protection for minority shareholders. On the other hand, as a corporate safeguard, voting trusts provide an avenue for minority shareholder voices to be heard and prevent corporate dissolution resulting from majority shareholder activism or hostile takeover. Consequently, for China to reach its ultimate goal of becoming the world’s largest economy and “Made in China 2025,” establishment of a voting trust system within the Chinese corporate sector is essential.
VL  - 9
IS  - 4
ER  -

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Author Information

Ali Raza Ansari

Guanghua Law School, Zhejiang University, Hangzhou, China
Alexandra Jane Davis

Guanghua Law School, Zhejiang University, Hangzhou, China
Kashif Imran Zadi

Guanghua Law School, Zhejiang University, Hangzhou, China

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Plain Text BibTeX RIS

APA Style

Ali Raza Ansari, Alexandra Jane Davis, Kashif Imran Zadi. (2020). The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy. International Journal of Business and Economics Research, 9(4), 282-287. https://doi.org/10.11648/j.ijber.20200904.25

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ACS Style

Ali Raza Ansari; Alexandra Jane Davis; Kashif Imran Zadi. The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy. Int. J. Bus. Econ. Res. 2020, 9(4), 282-287. doi: 10.11648/j.ijber.20200904.25

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AMA Style

Ali Raza Ansari, Alexandra Jane Davis, Kashif Imran Zadi. The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy. Int J Bus Econ Res. 2020;9(4):282-287. doi: 10.11648/j.ijber.20200904.25

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@article{10.11648/j.ijber.20200904.25,
  author = {Ali Raza Ansari and Alexandra Jane Davis and Kashif Imran Zadi},
  title = {The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {4},
  pages = {282-287},
  doi = {10.11648/j.ijber.20200904.25},
  url = {https://doi.org/10.11648/j.ijber.20200904.25},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200904.25},
  abstract = {Shareholder voting trusts have had a huge impact on the world as an important device for the protection of shareholders and corporations alike. However, this instrument is missing in the corporate sector of China – one of the world’s leading economies. In Part 1, this paper looks at the history of voting trust systems and the path toward legality. Historically, voting trusts were challenged by corporations and majority shareholders before the Court realized the public benefits of shareholder trust agreements. Part 2 uses examples of voting trust systems in other countries to demonstrate its necessity for the well-being of China’s corporate system. On the one hand, voting trusts are required for the protection and faith of shareholders and their participation in the market. One of the biggest threats to public participation in investment is lack of protection for minority shareholders. On the other hand, as a corporate safeguard, voting trusts provide an avenue for minority shareholder voices to be heard and prevent corporate dissolution resulting from majority shareholder activism or hostile takeover. Consequently, for China to reach its ultimate goal of becoming the world’s largest economy and “Made in China 2025,” establishment of a voting trust system within the Chinese corporate sector is essential.},
 year = {2020}
}

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TY  - JOUR
T1  - The Impact of Voting Trust System on Corporate World and Its Significance for China & Its Economy
AU  - Ali Raza Ansari
AU  - Alexandra Jane Davis
AU  - Kashif Imran Zadi
Y1  - 2020/08/19
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200904.25
DO  - 10.11648/j.ijber.20200904.25
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 282
EP  - 287
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200904.25
AB  - Shareholder voting trusts have had a huge impact on the world as an important device for the protection of shareholders and corporations alike. However, this instrument is missing in the corporate sector of China – one of the world’s leading economies. In Part 1, this paper looks at the history of voting trust systems and the path toward legality. Historically, voting trusts were challenged by corporations and majority shareholders before the Court realized the public benefits of shareholder trust agreements. Part 2 uses examples of voting trust systems in other countries to demonstrate its necessity for the well-being of China’s corporate system. On the one hand, voting trusts are required for the protection and faith of shareholders and their participation in the market. One of the biggest threats to public participation in investment is lack of protection for minority shareholders. On the other hand, as a corporate safeguard, voting trusts provide an avenue for minority shareholder voices to be heard and prevent corporate dissolution resulting from majority shareholder activism or hostile takeover. Consequently, for China to reach its ultimate goal of becoming the world’s largest economy and “Made in China 2025,” establishment of a voting trust system within the Chinese corporate sector is essential.
VL  - 9
IS  - 4
ER  -

Copy | Download