Protection of the Minority Shareholders’ Rights and Interests in the Voluntary Delisting

Abstract

Since the implementation of the new Securities Law and the revision of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange in 2020, the delisting criteria for listed companies in China have been further expanded. Influenced by the “New Delisting Rules” and the financial fraud of its subsidiaries, *ST Hangtong chose to voluntarily delist in order to avoid further triggering the compulsory delisting index, which has become a typical case of voluntary delisting in China. The voluntary delisting of *ST Hangtong has prompted further reflection on the protection of the rights and interests of minority shareholders, including issues such as insufficient exercise awareness among minority shareholders and the damage to their rights and interests caused by financial fraud.The cash option rights and majority decision mechanism, which are key to the protection of the interests of small and medium shareholders in relation to *ST Hangtong, have been implemented in China for only a few years but still have notable deficiencies. Therefore, the