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China regulations :Financial conduct authority is a financial regulatory body in the United Kingdom, and the purpose of the body is to regulate financial firms, by providing services to both consumers and markets and maintain integrity in United Kingdom’s financial authority. China regulationsUnited Kingdom’s listing Authority is currently a part of the Financial Conduct Authority and previously was a part of financial services authority. The purpose of the company is to maintain the security and integrity of the financial markets, and in order to achieve its objective, it has introduced a new regulatory system in 1999. China regulations The regulatory system focuses on financial supervision, and in order to maintain the efficiency and effectiveness of the regulatory law, different regulations are made to protect private (LTD) and Public (plc) companies. The reason why private and public companies are looked upon differently is the difference in the kind and intensity of risks that private and public companies face. Since public companies are listed on the stock exchange they face higher financial risks, whereas limited companies have few shareholders, and only shareholders need to be managed to protect the companies. Shares purchased by shareholders for the company are not only liable for shareholders but for the company as well, thus shareholders’ coordination and management is essential for financial regulation of limited firms.
The easiest way for a shareholder to maximize his wealth is to get dividends that are proportionate to their shares. Since profit maximization of the shareholders is usually the main objective of any company, it is important to explain what share is and how share distribution should be monitored and regulated?
Share is one of the equal parts into which a company’s capital is divided, and shareholders are entitled to a proportion of profits on that shared capital. According to the Companies Act 1985 (Section 744), ‘a share is a share is a share in the share capital of a company’; Companies Act 2006 (Section 541) Interests of members other than the shareholders, or interests other than shares are known as personal property. According to the companies Act 2006, ‘The shares or other interest of a member in a company are personal property’. The definitions of property and share as given by the companies Act are considered very important.
However these definitions are not the only definitions, there are some other and interesting scholarly views on share. For example according to Davies, in modern-day that the question is rather considered simple, but the answer to the question ‘what is share’? is not that simple. (Davies, 2008). According to him share can be considered as a choice in action, however, choice in action is a vague term to define share because share and choice in action have little in common, because share is a possession or an interest that can be considered as physical because it can be quantified whereas choice in action can not always be quantified. Thus, this cannot be considered as a definition of a share because choice in action and share has only one thing in common which is right to possession. However, even with this common factor, they differ because share always refers to the portion of capital that belongs to a partner in the company and is always professional whereas choice in interest can be personal or professional…
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