Equity Transfer Of Limited Liability Companies

The shareholders of a Public company can transfer their share rights in a fixed market, while the market doesn't exist for the shareholders of a limited liability company. The shareholders of a limited liability company can't draw their distribution back from the company for the restriction of the independence principle of legal entity, nor do they can find a public marketing to transfer their share rights. The only thing they can do is to transfer to the transferee. But it is a risk-taking transaction for the transferee because of the closeness of the limited liability company. In the meanwhile, the transfer also involve other shareholders interests, because the limited liability company is based on privately personal attribution. So how to design a kind of mechanism for transfer is very necessary concerning effective protection for the legitimate rights of companies and interests of transferor, transferee and other shareholders directly.Have made the clear regulation to the shareholder of limited liability company in our country's current "company law", but there are many rules which are not perfect. In view of this, I will combine the regulations of company laws in other countries and regions. Firstly , differentiating and analyzing the concept, then researching the theory and practice of share rights transfer in a limited liability company. The full text is composed of five parts altogether. The first part focuses on the fundamental conception. The second part is about the interior transfer of share rights and some related practical issues. The third part is the core of this text .It concentrates on the outside share rights transfer as well as concerning disputes . While describing every question, it includes its reasons, present difficult points, solution on the suggestion produced, etc. The fourth part focuses on the price issue , especially on the price under preemptive rights condition. The last part puts forward two remedies including the systems of withdrawing share and dissolving company when the share rights can't be transferred.