Research On The Shareholder's Right To Inspect The Corporate Accounting Records In The Limited Liability Company And Its Improvement

There is an account of corporate information of finance and management in company's accounting records and documents. The right to inspect the company's accounting records is an important access to obtain corporate information for shareholders of limited liability companies. Small numbers of shareholders as investors and restrictions on share transfer decides the shareholders'right to inspect the corporate accounting records, which is important to protect the interest of minor shareholders and improve corporate governance. Following an analysis of the legal nature of shareholders'right to inspect the corporate accounting records, there is an historical and institutional investigation. Results show that after complex evolution during which the corporate shareholders, senior managers and governments played important role the shareholders'right to inspect the corporate accounting records has been to be an institutional arrangement to balance the interests of shareholders and companies nowadays.The system of shareholders'right to inspect the corporate accounting records is introduced into China in 2005 to promote economic development. After the enforcement of new corporation law, the system became an important weapon for shareholders to gain the corporate financial information and protect their interests. But recent judicial practice showed that the system always failed because of the simple rules and lack of judicial interpretation on shareholder's agent, scope of inspection and purpose of shareholder etc. So the supporting institution should be consummated on the principle of the intensification of core institution and increasing the efficiency of the system. Taking the balance of shareholder's interest and company's and the nature of limited liability companies into account, the following changes should be taken: shareholders can have a qualified agent and they could check the corporate accounting documents, it is clear that whether the shareholder's purpose is proper or not and the proof burden between companies and shareholders, and a judicial proceeding called inspecting order should be introduced.