Why Is Information Disclosure Important

B. To establish the mandatory information disclosure regulations

In addition to the interpretation obligation, it is recommended to establish the mandatory information disclosure regulations for companies with dual-class share structure in order to dynamically monitor their equity structure. The company should disclose the necessary information that public investors need to know, such as the number of super voting shares and the multiples of voting rights, the decision-making matters applicable to super-voting rights, and the qualifications for management of super-voting shares, so that public investors can judge the real situation and make the most suitable decision.

Attention should be paid particularly to the proportion of management's holdings. When the proportion

For public investors, they can use information disclosure to understand the impact of the dual-class share structure on the value of the company's stock and thus decide whether to invest. For the shareholders of the company before setting up the structure, especially the external shareholders, although such a structure should be approved by more than half of the independent directors and more than half of the shareholders, the shareholders may also suffer from follow-up voting if information disclosure is incomplete, especially in the situation where public investors have weak judgment ability and mature institutional investors are not much. However, the mandatory information disclosure system cannot solve all problems. Since information disclosure is a unilateral act of the company, its authenticity and accuracy are debatable. Therefore, some scholars believe that information sources should be broadened to use more comprehensive information to detect the information disclosed by the company. At least the right to access related information should be granted to