Company Deadlock Crack The Problem Study

Corporate deadlock refers to the breakdown of the decision and management mechanism in a corporation arisen from the disabling of shareholders meeting or board of directors due to irreconcilable conflicts between shareholders or directors. Company deadlock is called as suicide of a company which will lost tremendous lost for shareholder, creditor, managers, employees and all the other relative corporate parties. Hence,seeking for the solution of company deadlock becomes a realistic subject of company law. Judicial dissolution as one of the solutions to break the company deadlock is necessary and realistic.The amended has also mentioned the judicial dissolution system. However, this one single provision is too general and prineiple, which is in lack of feasibility.Even though Joint Stock Limited Company might confront company deadlock occasionally, the existence of public market will help shareholders to get out of the company deadlock by trading off the shares.On the contrary, the inadequacy of trust between stranger shareholder and the comparatively close operation lead to the frequent cases of company deadlock in Limited Liability Company. Therefore, this article tap into the company deadloek situation from Limited Liability ComPany, by reasonable analysis on introducing judicial dissolution institution and comparison of foreign relative mature legislation. Author has provided own comments on the current applicable Chinese judicial dissolution system of company.