Evolution of the Corporation and the Shareholders’ Role in China

Abstract

This paper focuses on the historical development of China’s corporate forms in different stages and their respective features as well as the main causes and effects. The author discusses the governmental impact upon the corporate evolution from the perspective of ownership and control and concludes its negative influence in general. It is the aim of this paper to demonstrate that government should not interfere too much in the development of these corporate sectors mainly from the lesson of history and unnecessary governmental interference should be subsequently removed. Shareholder protection, particularly minority shareholder protection, should, as a result, be emphasized for adapting the modern corporate governance.