Study On Expulsion Of Shareholders Of Limited Liability Company

Expulsion of shareholders is a legal system which is essentially one of relief measures for breaking corporate deadlock of limited liability company (herein after referred as LLC). It refers to during the time of contract, some shareholders make some serious infringement to the interests of company , other shareholders and the company can not endure to retain their qualification of shareholders, and according to legal procedure, make them quit company by force. The LLC is a company state which plays an important role in economic activity and legal filed due to its easy establishment and flexible management. The essential characteristic of LLC is its asset joining concurring with human joining, or becoming the human joining directly. Once losing trust relationship or good cooperative relationship is broken between shareholders, the company will have trouble in its operation. So if there is someone ruins the basis of the human joining, the company may come to corporate deadlock. According to the regulations of current company law, the relief measures for breaking the deadlock are dismissing company by force and repurchasing dissent shareholder's stock. It really has to expulse the marplot to save the company and the other members, but there is no approach in our company law. In order to solve problems in company practice and judicial practice which are made by legislative defects, introducing the system of expulsion of shareholders is very necessary. So to build the system of the expulsion in the whole company law system according to our actual situation through researching on it is the purpose of this article.This article consists of five parts as follows.The first part is the preface, this part clarifies the reason and the value of the expulsion, the domestic and overseas study situation of the topic and defines the scope of the LLC in this article.The second part defines the meaning of expulsion of shareholders and legal characteristic, and concentrates on the difference between expulsion of shareholders and appraisal right of shareholders.The third part introduces the expulsion of shareholders of LLC from different areas and describes the different rules of expulsion made by different countries.The forth part is a plan to set up and perfect expulsion of shareholders of LLC, the system involves expulsion of shareholders entity, expulsion procedure and legal consequence as well as the system implementation under the current situation.The last part is the summary of the article which describes the significance of the expulsion of shareholders system in improving the relief measure of the deadlock.