Research On Judicial Solution Mechanism Of Limited Liability Company Deadlock

Corporate deadlock refers to the situation that politburos such as the board of shareholders and board of directors get involved in mutual confrontation which brings about failure of voting and the crash of inner business of the corporate due to the serious contradiction among shareholders, among board members, or between shareholders and board members.Among the various kinds of companies, the limited liability company is more subject to corporate deadlocks because of its closeness. As occurred, corporate deadlocks do terrible harms to the corporate interest and the shareholder (as investors to the company) interest. A corporate is a basic unit to social economy. If it fails to operate normally, it will affect negatively the interest counterparts out of the corporation and further the safety and normal of the entire market trading. Finally the effect reaches the stability of the society.So far, Common Law countries have done advanced theoretical study on corporate deadlock and developed relatively integral unlocking measures such as Judicial dissolution,provisional director and Mandatory buyout. Continental Law countries have also made considerable theoretical and practical achievements. Based on measures such as disenroll and withdrawal, the way of Continental Law countries to tackle with corporate deadlock become gradually systematic. With a short history of corporate, China lacks in theoretical study on corporate. There is also quite a little in adequacy in the judicial practices of Continental Law countries.Corporate deadlocks are various in types with various causes. So, it is necessary to conduct theoretical analyses on relevant theories home and broad and comparisons among the judicial practices of countries in order to tell the theoretical and practical problems of China.In our country, though contributing a lot to the development of the legislation concerning corporate deadlocks, article 183 of Corporate Law can hardly deal with the real situations of society due. More relief measures and corresponding systems are required. Therefore, based on the autonomy principle for corporate, careful and limited interference into corporate deadlocks are necessary. With the fruits out of legislation and judicial practices abroad and judicial measures such as judicial dissolution,Mandatory buyout,Mandatory disjunction,regeneration and custodian. Corporate deadlocks are supposed to be handled fair and effectively in time.