Study Of The Expulsion Of Shareholder

Expulsion of shareholder is a system which directly influences the identity of a shareholder through compulsive deprivation of the right as an investor. The existence and implementation of this system is of vital importance to a LLC without access to a stock right transferring market. Compared with other company-deadlock-solving systems, it enjoys unparalleled advantages and plays a positive role in perfecting company law system, in the legislative adjustment for the standardization of shareholder right, and in safeguarding the rational profits of lawful shareholders. On the other hand, from the viewpoint of Law-Economics, the establishment of expulsion of shareholder is to the benefit of economic efficiency, the sustaining of investors' enthusiasm and social and economic development. In view of its absence in Chinese company law system; this paper focuses its discussion on the feasibility and necessity of establishing expulsion of shareholder in China. Moreover, a comparison between the common-law-system-based American expulsion of shareholder and the civil-law-system-based German expulsion of shareholder was made. In the end, the paper carried out a discussion on designing the specific rules of establishing Chinese expulsion of shareholder on the basis of Chinese situation.