Study On Equity Transfer System Of Limited Liability Company

In case of equity transfer of Limited Liability Company (hereinafter referred to as CO., LTD), the trusting and reliable relationship between shareholders should be safeguarded, and random equity transfer prohibited, due to the personal and capital characteristic of CO., LTD; Moreover, the problem of equity transfer of CO., LTD not only involves interests between the transferring shareholder and the rest shareholders, but also complicated legal relationship with third party, and even the existence and change of the form of the company. Although there are big improvements in newly amended Company Law (2006) compared to prior counterparts, the stipulations on the problem of equity transfer is not clear enough, and there are even loopholes in this area. Due to these deficiencies, it is no wonder that the disputes arising in connection with equity transfer are still on the rise after the promulgation of the newly amended Company Law.In the current essay, on the basis of relevant provisions of both newly amended Company Law and its predecessor, as well as current Marriage Law, Inheritance Law, Civil Procedure Law and other relevant laws, the author conducts an in-depth analysis and discussion of the current equity transfer system of CO., LTD, including regular equity transfer system and special equity transfer system, i.e. equity transfer arising from divorce, inheritance as well as enforcement of equity by the court, then comes up with his own proposals about how to further perfect the equity transfer system of the current Company Law.