Research On The Right Of Inspection Of Shareholders' Books In Limited Liability Company

Shareholders’ right to know is one of the most important part among all the shareholders’ rights.In order to understand more about their company’s management and protect their legal rights, shareholders should exercise their right to know.Because the company’s accounting books can reflect the company’s operating condition most intuitively, shareholders often request company to check accounting books so that they can achieve their right to know. A limited liability company has an obligation to submit regular financial reports to shareholders. In addition,if shareholders request company to check accounting books,they must submit a written application to the company beforehand,and explain the concreteness and legitimacy of their inspection purpose.After modifying the company law in 2005, the company’s legal system has been further improved.The new company law makes clear that shareholders of the limited liability company can check accounting books,and stipulates that shareholders’ right of inspection to accounting books must have a legitimate purpose.This provision is undoubtedly a major progress.It makes the the shareholder’s right to know can be achieved better and balances the shareholders’ and the companies’ rights and obligations.However,the current company law just uses only one principle provision to stimulate the system of shareholders’ right to inspection.It lacks detailed instructions.On this issue recent modifications in corporate law and judicial interpretation of the Supreme Court is also not to be clear.The same kind of cases may have different trial results by different judges,because they don’t follow unified standards. So this paper tries to analyze many typical cases which I collect by empirical research methods.It also wants to study the difficulties of the shareholder’s right to access accounting books in actual trials,finally,puts forward my own opinions on the basis of the domestic and foreign experience and research.This paper is divided into three parts.Part One is introduction.This part mainly studies why I choose shareholder’s right to access accounting books as my topic,which is this topic’s fundamental theory and what methods I use.Part Two analyses plenty of actual cases and discusses four aspects of the system of shareholder’s right to access accounting books,which includes subjects,scopes of objects, subjective conditions and exercised way.Part Three is conclusion.This part summaries current law’s deficiencies and proposes how to improve the system.This paper argues that we should clearly stimulate the subjects and scopes of shareholder’s right to access accounting books in a limited liability company.Shareholders have the right to check the company’s accounting documents.The company law can describe what purposes are proper and which is the appropriate way to exercise in detail.If we consider both shareholders and the company, equity and efficiency,the modern corporate system can develop better.