BEIJING, Aug. 23 (Xinhuanet) -- Chinese minor shareholders will get better protection by the Law on Corporation, according to the 17th session of the Standing Committee of the 10th National People's Congress (NPC) on Tuesday.

    In some limited corporations, major shareholders did not share profits with other shareholders for a long time, and refused minor shareholders to check the financial situation of the companies, said Hong Hu, deputy director of the NPC Legal Committee.

    Minor shareholders often could not quit from the corporations by transmitting shares, therefore their interests were seriously compromised, he said.

    Some deputies suggested that further regulations should be madein this regard, like ensuring minor shareholders access to inside information and entitling them to quit from corporations in special circumstances.

    According to the draft amendment submitted to the session, shareholders would be allowed to audit the accounts of limited corporations. Corporations could refuse the check if the shareholders have inappropriate purposes or may harm the corporation. Shareholders can ask for check permits from the People's Courts.

    It also requires that corporations which gain net profits for five years in a row and are accordant with the profit-sharing conditions set by this law, but do not share profits with shareholders, can be asked by shareholders to buy their shares at reasonable prices.

    Those shareholders who cannot reach agreements with corporations in share purchasing can challenge the corporations in People's Courts, said the draft. Enditem