On The Judicial Dissolution Institution Of Deadlocked Limited Liability Company

Company deadlock is called as suicide of a company which will lost tremendouslost for shareholder, creditor, managers, employees and all the other relative corporateparties. Hence, seeking for the solution of company deadlock becomes a realisticsubject of company law. Judicial dissolution as one of the solutions to break thecompany deadlock is necessary and realistic. The amended has alsomentioned the judicial dissolution system. However, this one single provision is toogeneral and principle, which is in lack of feasibility.Even though Joint Stock Limited Company might confront company deadlockoccasionally, the existence of public market will help shareholders to get out of thecompany deadlock by trading off the shares. On the contrary, the inadequacy of trustbetween stranger shareholder and the comparatively close operation lead to thefrequent cases of company deadlock in Limited Liability Company. Therefore, thisarticle tap into the company deadlock situation from Limited Liability Company, byreasonable analysis on introducing judicial dissolution institution and comparison offoreign relative mature legislation. Author has provided own comments on the currentapplicable Chinese judicial dissolution system of limited liability company. This article consists of four chapters.Chapterâ… is the relative issues of company deadlock of Limited LiabilityCompany. This chapter focuses on analysis of outside performance and inside reasonsof company deadlock in Limited Liability Company.Chapterâ…¡is the judgment on company deadlock of Limited Liability Company.There are various of definitions of company deadlock, but the definition doesn'tnecessarily mean the judgment of company deadlock. In order to determine thatwhether a company is in deadlock, all three criteria must be met.Chapterâ…¢is judicial dissolution institution under the circumstance of deadlockin Limited Liability Company. "No dissolution, no real right". It's the commonregulation in company laws of two legal systems that the court can dissolute thecompany by force under due legal course. However, since the system itself will createcost, considering the moral risk, certain restraint on judicial dissolution is alsorequired.Chapterâ…£is the question and reconsideration of the judicial dissolutioninstitution in China. The judicial dissolution institution under the current new only refers to the situation of "dissolution by shareholder's requestto court". In addition, the legal regulation is too general which will create manyproblems in reality. This article also provides some proposals on improvement.