Studies On The Judicial Dissolution Of A Company

The Article 183 of new Company Law of the People's Republic of China claims that where a company meets any serious difficulty during its operation or management so that the interests of the shareholders will be subject to heavy loss if it continues to exist and it can not be solved by any other means the shareholders who hold ten percent or more of the voting rights of all the shareholders of the company may plead the people's court to dissolve the company.It firstly establish the judicial dissolution of the company in the form of legislation and provides a judicial remedy to resolve the deadlock.Judicial dissolution of the company's system is accompanied by the development of market economy and the accelerated process of internationalization and developed together. But the original company legal system can not meet current market needs of economic development with China's accession to WTO. The state has promulgated a series of relevant legislation.In order to make up for the lack of interoperability the Supreme Court introduced the explanation on Several Issues of Company Law besides the article 183 of Company Law in May 2008. However compared to Western legal systems, our regulations on judicial dissolution of the company's legal system is not perfect.This paper describes the Legislative Value and source of judicial dissolution of the company, compares the judicial dissolution system between Chinese and foreign companies and sums up the shortcomings of judicial dissolution of the company in China.At last,this paper try to put forward some effective measures to resolve the shortcomings.