Precaution And Resolution Of Corporation Deadlock

The corporations of our country are dividend into two types that are the limited liability corporation and the share limited corporation. The limited liability corporation and the share limited corporation established by initiator are close. The above two kinds of corporations have less shareholders and are founded on the base of the identity or relation among shareholders. When there is some conflict among the shareholders with equal percent or approach equal percent of shares, the facedown will lead to make no policy, board will unable to complete the daily management, and burst deadlock. Recently, there takes place many deadlock in our country which do much harm to shareholders, creditors and the society. This paper wants to learn the advanced experience from other countries which can be combine with our country's situation to defend domestic corporation deadlock by corporation's constitution, awarding suitable rights to shareholders and creditors in order to decrease the chance of deadlock, increase the efficiency of handle the deadlock so that the social economy can develop rapidly.