Research On The Limited Liability Company Defective Capital Contribution

These years, the disputes resulted from the transfer of defective capital contribution by the contributor often occur. The current company laws have no definite regulations for this issue. And the academic theory is also lack of enough research upon the transfer of defective capital contribution. Courts practices adopt various standards and make various decisions. Because of these reasons, the article mainly discusses the problems of the transfer of defective capital contribution of the limited liabilities companies. The defective capital just referring to the capital resulted from defective contribution. In addition to the preface and conclusion, the article is divided into four parts, and the structure of the article is as follows:Part one is the introduction to the concept of the defective capital contribution. The defective contribution is the base of the defective capital. This chapter is a limited liability company first invested stake in the concept of defect is discussed, and limited liability company form of equity financing flaws introduced, followed by the company's capital system in our country, analyzed the flaws in our limited liability company resulting from equity financing reasons.Part two is the introduction to the effect of the transfer contract with defective capital contribution. How does the defective contribution will affect the transfer agreements with capital? How is the effect of the transfer agreements? This part introduces the establishment and validity of the contract on the transfer of capital and then resents a few theories on the legal effect of the transfer agreements with defective capital contribution. The discussion starts from the establishment and requirements of these agreements..Part three discusses how to share the risks on the equity transfer with defective capital contribution. The transferee will face many kinds of business risks after implementing.Part four is the introduction to the relief on the transferees'rights. The risk of defective capital contribution was caused by the transferor, so the transferee should have the homologous right of relief after the transferee having good intentions undertook the risk. The article inquiries the measures that the transferee can take to defend the risk in advance, and points out that the transferee can take the various measures, letting the risk declined to lowest.