Legal Study On Problems Of Corporation Deadlock

The companies played the tremendous role in the development of the social economy. However, when the operation of the companies fell into the situation of the deadlock. If not promptly and properly it will seriously affect the normal operation, resulting in the significant losses of the interests of people. Therefore, the deadlock of the company has always been the world Companies issue on the theoretical and practical research.Our new "Company Law" stipulates that who account for the 10 percent of stock in a company to request the people's court dismisses the company if the management of the company is difficult to operate, and keeping on saving the extended session to cause the shareholder more loss without any method to solute it. This provision was seen as China's "company deadlock provisions." but, Regrettably ,the law, unlike the company law in the developed country with complete company system, did not explain the"Company Deadlock", and introduce different solution mechanism either, which reduced, to some extent, the oppressed shareholder to seek the legal way in order to protect themselves legitimate benefits ,are not good for the balance the interests between the company and shareholder and are disadvantageous to attract the more capital to invest into the trading enterprise, obstructing the healthy development of the social economy .This paper begins with defining the deadlock in the company connotation, denotation and characteristics, and analyze the reasons of deadlock and its harmfulness, and on bases of foreign companies deadlock in the judicial and legal authority , and explores the ways of resolving the impasse of company deadlock. The writer believes that the features of company deadlock is "between the main confrontation, the company's operating mechanisms serious failure, and its not unlawful and non-default, the complexity and difficulty predictability of the deadlock form, the continuity of deadlock, and the superiority of the parties is not legally deadlock, and it has great harm. In our companies practice, the company deadlock cases had already come, but because of the gaps and imperfections of legislative, resulted in the judiciary of dealing with such cases at a loss. Therefore, we must change the concept of legalist, from the building of a harmonious society to view the company impasse, learn other countries and regions of legislative experience and research findings and along with China's specific national conditions and adhere to the"prevention is main method, and the relief aids after the principle of", and seeking to solve the deadlock in the company the best option. The writer thinks that the original ideas of the decision according to the staff votes and the insurance of the shareholders to purchase the company deadlock. Obviously, nowadays we can't copy the mechanism directly because the conditions in our country are not ready. In the future, when the conditions are ripe, we can revise the company law and then apply the systems stated in the article.