Company Impasse Legal Issues

Company as a form of business organization plays an irreplaceable role in economic prosperity, but in practice there are also some disharmony with the expectance, corporate deadlock is one of these. On the basis of the newly revised "Company Law" and in light of the experience of foreign companies similar measures, this article will focus on the corporate deadlock to explore the resolution of the deadlock from it's characteristics, causes and effects with the formation.This article discusses the corporate deadlock legal issues with four parts.Part I: This part outlines proposes that corporate deadlock is disastrous for the company, shareholders of the company and other stakeholders, because the difficult to form a implementation decision harms the company's normal functioning and operation .The property of company sustains losing and the company as the main players in the market will endanger safety and efficiency of the whole market system, because its own operational capacity and debt servicing capacity continue to decline. The newly revised "Company Law" reflects the corporate deadlock and also concerns with the judicial dissolution of the company and shareholders exit mechanism for the provision, but how to choose the best way to resolve corporate deadlock is still worth of exploring.Part II: This part analyses the concepts, characteristics of corporate deadlock and discusses the patterns of company which is easy to cause corporate deadlock and makes "malicious deadlock" and "goodwill deadlock" division. Corporate deadlock is an image of confrontation which is the transplant from political power struggle and deadlock phenomenon shows a state, in which two parties would not compromise and bring the company into a state of paralysis. Instead of defining it, this article describes some of its features. This article summarizes corporate deadlock from shareholders, directors between confrontational, companies operating mechanisms of the disorders, stalemate continuity, deadlock patterns in regard to the complexity of the features. In the United States law, corporate deadlock is generally considered closed companies patent, so someone believes only limited liability Corporation have the potential danger to cause deadlock. This article detailed analyses that in our current system the companies' initiation of the...