Studies On The Judicial Dissolution Of A Company

A company is a social organization built upon the contracts conductedby shareholders out of free will, which means that the existence andoperation of a company depends on the free will of shareholders. However,where the company is trapped in circumstances which can't be resolvedby negotiation or agreements between shareholders, and the existence ofthe company may result in further damages to shareholders'legal rights,the impeached shareholder may apply to the court for judicial dissolutionof the company. The establishment and improvement of the judicialdissolution of a company in Chinese Company Law provides the impeachedshareholders with the last method of remedy in circumstances above, whichmay bring in good effects on the development of our Company Law ,the entiresociety ,as well as our economy.Nevertheless, provisions on judicial dissolution of a company in therevised Company Law of China are far beyond consummation, which can'tbe well exercised in legal practice due to its generalization and thusmay hurt the authority of our new revised Company Law.In order to provide guidance in legal practice of judicial dissolutionof a company, this article will study on it in four chapters. In ChapterOne the author shall introduce some essential theories of judicialdissolution of a company, to study the rationality of the system of judicial dissolution by analyzing its legal functional values andnomological basis. The issues of legal application range and jurisdictionof the suit of judicial dissolution will be discussed through comparativestudy on legislation and legal practice of different countries in ChapterTwo. The author will, in Chapter Three, from the view of internationallaw, analyze issues relevant to the status of parties standing in court,while in Chapter Four emphasize that mediation shall be the prerequisiteprocedure before litigation of judicial dissolution and figure out thefunction of the judge in litigation hereof. Besides, liquidation afterthe verdict of judicially dissolving a company takes effect shall bediscussed as well. Generally, this article tries to review the system ofjudicial dissolution of a company in our country, along with a clue ofcivil litigation, with the purpose of improve this system by degrees.The new revised Company Law of China is one of the most important lawsregulating the market economy in China, and shall be modified continuouslyin accordance with the development of our economy and legislation, duringwhich the system of judicial dissolution of a company shall be improvedboth in legislation and legal practice, and play a positive role in companymanagement and social development.