A Study On The Corporation Judicial Disslution System

Since corporation is the outcome of free contracts among shareholders, its foundation or dissolution will depend on their will. As the rights of shareholders are violated, while the corporation can't make agreement on resuming their rights or dissolving corporation, the shareholders trespassed should be entitled to safeguard their rights through such various remedies as applying for dissolution of corporation. Prior to the revision of Corporation Law, however, there is no clause about corporation dissolution in our country due to historical and realistic reasons. Legislation absence leads to loss of shareholders'rights and confusion of trial practice. On account of this, New Corporation Law first stipulates the situation of judicial dissolution, but this stipulation is so superficial without systematic operation procedure that it is difficult to realize the effectiveness and punctuality of judicial remedy. Owing to frequent right abuse of chief sharekholders, invalid right safeguard of subordinate sharekholders as well as poor corporation management, constituting a sound corporation judicial dissolution law allows no delay.Establishing corporation dissolution law cannot only provide a tool for subordinate shareholders, but also can prompt the chief shareholders to perform integrity and diligence on the former part. Furthermore, it offers a thorough legal solution to disputes such as resulting from uneven distribution among chief shareholders.With typical cases as an introduction, the writer analyzes the defect of legislation status quo and judicial practice of judicial dissolution law in our country, as well as the subsequent adverse outcome, and also points out that it is an urgent task to perfect present legislation and set up judicial dissolution law. Besides, the writer seeks for the convincing theoretical evidence in terms of both of law and economics and expounds the legislation value and realistic condition of this law. Through employing analysis method of comparative law, learning from the legislation experience abroad and applying to the factual situation in our country, the writer finally proposes the detailed assumption of establishing corporation judicial dissolution law.