Of A Limited Liability Company Shareholders Retire Equity System

The stockholders withdrawal rights in the limited liability company (LLC) is defined as right of the shareholders to be entitled to sell their equity on reasonable price to LLC during its existence according to procedure ruled by the law or regulation of the company and sever the relations with the company when the shareholders have dissidence to the major decisions made by the company or considered their legitimate interests have been infringed by the company. The system of the right has been set up due to the abuse of human joining and the majority rule which put the medium and small-sized shareholders into unrecoverable difficulties, therefore this system aims to fully protect the legitimate interests and rights of medium and small-sized shareholders.The system of the right of returned stock of the stockholders has been constituted by the corporate law in different countries. The system has firstly been established in our country after the amendments to the corporate law. It is not only the measure for legislators to provide the compensation and psychological sympathy for the shareholders who are lack of right of decision-making for the company, but also the rational choice for respecting for both shareholders to pursue the profitability and companies practices to fit in the ever-changing environment. However, it is inevitable for the system to have some pitfalls when it has been set up firstly in our country, so it is necessary to polish it.Apart from the preface and conclusion, this paper has been divided into three parts. The first part describes the overview of the system of the right of returned stock of the stockholders of the limited liability company (LLC). In this part, firstly the theoretical analysis has been conducted for the concept and attribute of the system and the conclusion has been reached. Secondly, the paper shows the characteristics of the system furthermore by doing the comparison about the concept between the system and share transfer, reduction of capital, Stock Repurchase and so on. Thirdly, analyses in four aspects have been done to show the reason that the system has been set up and the legal importance of the system has been briefly introduced. With the theoretical analysis, the part shows the important role of the system to protect the legal rights and interests of medium and small-sized shareholders and promote the healthy development of the market-oriented economy.The second part shows the legislative environment of the system of the right of returned stock of the stockholders of the limited liability company (LLC). This part consists of two sections, one is about the research on legislation of the system in other countries, and the other is about the legislation process of the system in our country. The first section mainly focuses on the system design and legal provision about the right of equity withdrawal of the United States which is the representative of Anglo-American law system and Germany which is the one of Continental law system and try to find the advantages of their systems which set the foundation for the suggestions for our system in the next chapter. The second section makes the specific introduction to the background and process of the establishment of our system and provides the basics for the analysis in next chapter.The third part illustrates the problems and suggestions for our system. Based on the No.75 course in our latest corporate law, the paper points out the deficiencies of the course in the aspect of subjects, scope of application, exercise procedures, restrictive condition and provides the suggestions for improving those aspects, so that we could enhance our system which play its role.In the conclusion, the paper reiterates the viewpoint and the importance of the system, and suggests amendments step by step to improve the system to fit in the current situation and condition in our country.