A Research on Profit Misappropriation by Controlling Shareholders: Taking ST Zhongzhu as an Example

¹ Mayfield School, East Sussex, TN20 6PH, United Kingdom
² School of Economics and Finance, Jilin University of Finance and Economics, Changchun, 130117, China
³ College of International Business, Shenyang Normal University, Shenyang, 110034, China

^* Corresponding author: yqiu2025@mayfieldgirls.org

Abstract

This paper selects Zhongzhu Healthcare Holding Co.,Ltd (ST Zhongzhu ) as the research object, introduces the means of ST Zhongzhu’s controlling shareholders’ interest appropriation, studies the factors leading to the behaviour of interest appropriation, and puts forward targeted solution measures. This paper includes the following six parts. The first section is an introduction, combing the related literature and summarizing the background and significance of writing. The third part is the introduction of the case of ST Zhongzhu controlling shareholders encroaching on the interests of listed companies, the controlling shareholders of ST Zhongzhu encroach on the huge interests of listed companies mainly through the appropriation of funds by the related parties and the violation of the provision of guarantees for the related parties, etc., and at the same time elaborates on the negative impacts caused by this behaviour. The fourth part is the reason why the controlling shareholders of ST Zhongzhu’s interest encroachment behaviour can be realized. The fifth part is the measures to prevent the controlling shareholders’ interest encroachment, and puts forward the countermeasures to solve the encroachment of the company’s interests by the controlling shareholders of ST Zhongzhu. The sixth part is the conclusion of this paper. This paper analyses in-depth the current situation of interest encroachment in ST, and puts forward specific measures to solve the problem in view of the contributing factors. Contribute to the corresponding theoretical research.