Dose Residual Profit of Corporate Controlling Interest Detract from Interest of Minor Stockholders?

It has been currently accepted in academia home and abroad that corporate controlling private profit is an invasion to minor stockholders' interest. Yet, there are fewer documents about the influences of majority ownership and the effects of controlling private profit on reducing agent cost, improving allocation efficiency of ownership and corporate performance. This paper explores on residual profit of controlling interest from the point of property right on the basis of available literatures. And we find that controlling residual profit exists objectively, therefore, we focus on investigating how to use it rationally and efficaciously. The answers to controlling residual profit as an invasion to interest or performance optimization lies on whether controlling stockholders undertake residual risk or not. The four-in-one system of "residual rights of control, residual claim, residual profit and residual risk" is both the best allocation of controlling interest and controlling residual profit, and an optimized framework of corporation ownership. Any residual profit separating from residual risk must be an invasion to minor stockholders' interest.