The Positive Significance of Minority Shareholders' Participation in Corporate Governance

Generally speaking, there are two ways for minority shareholders to participate in corporate governance: one is to exercise their voting rights by attending the shareholders' meeting, and the other is to supervise the performance of directors, managers and even supervisors of the company by exercising their due supervisory power. Specifically, they can attend the shareholders' meeting and make their own decisions on the resolutions of the shareholders' meeting, such as the selection of directors and supervisors, and the company's dividend distribution plan. This is the voting right of shareholders.

First, the positive significance of minority shareholders' participation in corporate governance

In order to prevent cronyism and abuse of power by the board of directors, users can take preventive measures in advance (such as voting rights, directors' right to recall and directors' right to stop illegal acts) or take remedial measures afterwards. Of course, the basis of implementing such preventive and remedial measures is that shareholders must have the right to know information about the company's business activities.

Second, the power of minority shareholders.

It is also huge, which can refute the motion of the shareholders' meeting, especially when listed companies or major shareholders with highly dispersed shares need to abstain from voting. Recently, the listed company Yiwei Lithium Industry was able to hold a general meeting of shareholders. The meeting adopted a combination of on-site voting and online voting. 44 people attended the meeting, accounting for 4.06% of the company's total share capital. Huizhou Yiwei Industry, the major shareholder, is a party to related party transactions and cannot participate in the voting on this proposal. The meeting reviewed and approved the Proposal on Equity Transfer, Debt Transfer and Related Transactions.

To sum up, in order to achieve effective corporate governance, it is necessary to constantly improve the external environment such as legal system and public opinion supervision. In the implementation of company law and related laws and regulations, it is necessary to promote stakeholders including minority shareholders to participate in corporate governance through diversification and decentralization, and change the status quo of silent majority. Therefore, we should applaud the small and medium-sized shareholders who play a key role in Gome's voting and truly embark on the stage of corporate governance.