Legal Study On The Problems Of Corporation Deadlock

Corporate deadlock is one of a series of problems that exists in the decision-making mechanism of corporations. The appearance of corporate deadlock makes the normal operation of the corporation at a standstill, shareholders' interests face significant risks of their investment. Therefore, exploring the causes of corporate deadlock and seeking ways to solve it by law, are necessary not only to respond the needs of company law's practice, but also the needs to perfect company law theory. Companies are concerned about the stalemate of the legal issues involved to make a company stalemate exploratory study, and this is the original writing aim. China has begun to implement the latest Corporation Law of People Republic of China on Jan 1st ,2006 (here in referred as new Corporation Law) .The new Corporation Law makes some regulations on how to deal with corporation deadlock.The new Corporation Law of China only stipulates the system of involuntary judicial dissolution, and it does not use well. The related rules should be perfected though judicial interpretation to protect the party's interest really. However , that is not enough to deal with all the trouble arising out of the deadlock. We should take the new amendments of Corporation Law into consideration and the solution of corporation deadlock as its studying subject. Also, combining the legal practice in common law system and civil law system and in accordance with the relevant theories of corporation law, this paper puts out the solutions to this problem suitable to the conditions in our country within the frame of the current law system. The shareholders self-remedy measures are the other important part of legal strategies to break the corporation deadlock .The shareholders can make agreement on how to break the corporation deadlock. So put forward to our the existing company lawmaking rule of compulsive dismiss a company to carry on perfect of suggest in the meantime that increase to establish compulsive share to procure and a temporary board director in the company lawmaking etc. the succor measure, in the meantime to compulsory the company dismiss and procure share compulsory to go forward to go a certain study in the concrete operation.