On Transferee's Legal Risks And Corresponding Preventive Measures In Equity Transfer With Limited Liability Company

Nowadays, with the rapid development of the market-oriented economy, limited liability companies play more and more significant role. Share transfers of limited liability companies also play more and more significant role in brisking market-oriented economy, promoting circulations of capital, optimizing resource allocations and so on. However, because of the system imperfection and defection of share transfers in《Company Law of the People's Republic of China》, disputes of share transfers emerge in endlessly. From the standpoint of protecting assignees'interest in share transfers, in order to make assignees realize related risks and take effective preventive measures to avoid damages, it is necessary to analyze concrete risks of Transferees in Share Transfer of Limited Liability Companies.Based on the legal doctrines of Share transfers of limited liability companies, to the question of assignees'related legal risks, the paper discusses the legal risks of subjects, objects, content flaws in courses of assignments, and puts forward practical precautions and suggestions. Firstly, the paper discusses the impacts that the particularity of limited liability companies make on share transfers, and concludes that the system of share transfers of limited liability companies is the balance between person cooperation and property joint, is one kind of art of balance. Secondly, the paper analyzes the risks of subjects flaws and mainly discusses the risks of share transfers of hidden name investors and joint shares, and advises assignees to set up the consciousness of risk precautions, investigate assignors firmly, employ professional agencies and set firm liabilities for breaching contracts to prevent risks. Thirdly, the paper analyzes the legal risks of objects flaws in share transfers, including the legal risks of typical defective share transfers and plege share transfers, and advises assignees to arrange ways of performance reasonably, examine related documents firmly, ask assignors to tender guarantees, and examine target companies firmly to prevent risks of objects flaws in share transfers. At last, the paper analyzes the legal risks of content flaws and law breakings of share transfers, and advises assignees to confirm conditions of transfers, confirm procedures of transfers and examine contracts firmly to prevent related risks. The risks of share transfers of limited liability companies emerge in endlessly, on the one hand, the lack of social good faith and low qualities of current judges contribute greatly to the result; on the other hand, the imperfection and defections of related laws and systems may be the essential points. Therefore, the perfection of the related laws is urgent.