The Study On The Legal System Of The Expulsion Of Shareholder

Expulsion of shareholder is an important legal system in modern company law. It is the last relief measure when companies produce the deadlock and before shareholders request compulsory dissolution of the company. The so-called expulsion of shareholder which is against the shareholder's will, is mainly used to be as a measure to solve the problems of the shareholders eligibility, and according to legal procedure to deprive his rights and exclude his participation in the company, which based on legal or agreed reasons. Shareholder withdrawal is voluntary, on the contrary, shareholder expulsion is passive.The legal system of expulsion of shareholder has special function, and plays an important role in protecting the interest of the company and the other shareholders. Compared to other effective mechanism of the aggravation of the internal contradictions and conflicts in the company, this legal system has irreplaceable superiority. It can avoid the aggravation of the internal contradictions and conflicts in order to maintain the existence and continuous development and consequently to safeguard the common interest of the other shareholders in the company. The application of legal system of expulsion of shareholder must take the comportments or the personal circumstances of the shareholders obstruct or influence seriously the development of the corporation and the common interest of the other shareholders as the premise. So the legal system of expulsion of shareholder closely connected with the intuitus persone.Although there is controversy about whether can expel the shareholder from the company or not which against the shareholder's will. But there is no doubt in other countries, the legal system of expulsion of shareholder has been recognized and widely considered as a basic system in the limited liability company even in incorporated company. The case about the expulsion of shareholder has been existed in practice and accepted by the court in the domestic. However, current corporation law in china does not make provisions for expulsion of shareholder, and because of lack of such a legal system, it seriously lags behind the current situation and development of the corporation law in our country. Therefore in order to solve problems in company practice and judicial practice which are made by legislative defects, introducing the system of expulsion of shareholders is very necessary. And establishing the legal system of the expulsion of shareholder according to our country conditions has become an urgent demand of perfecting corporation law.