The Analysis About The Relavent Problem Of The Termination Of The Equity Transfer Contract

The Company Law of China made the permission of the equity transfer,whichsupplies free space for the survival and development of a limited liability company.Once the limited liability company,which was established on the raliance between theshareholder, would be difficult to survive when it was into a crisis of confidence. Thiscrisis of confidence can be expressed in damaged the interests of minorityshareholders, the separation can be expressed in the concept of decision-making forshareholders. In this case, only supplying the methord of leaving to the oldshareholders who want to leave the company and the methord of joinning to the newshareholders who want to be the menber of the company can help to maintain thecompany’s survival. However, to maintain the life of the limited liability companyonly is a part of the responsibility of the law, to protect the legitimate rights andinterests of the parties in the share transfer contract and provide effective channels ofreliefing is also a legal responsibility which the law can not be avoided. Now thecontract law of China do not supply the detailed provisions about the equity transferagreement,only say that the share transfer contract can refer to the provisions ofcontract law. That left some questions during administration of the law.The history of the development of China’s Company Law, was not as long asother countries, China’s economic development system leads thissituation.Therefore,there is no explicitly relevant provisions of termination of the contract of the equity transfer.With the growth of the equity trading needs,itscontractual remedies is increasing. Third company law interpretation came into beingprecisely proving that the company disputes get the more and more concern andattention,the opinion of the article is established on the relevant provisions of the thirdcompany law interpretationThis article comply with the logical structure of the termination of the contract inthe contract law. But the characteristics equity leads the article must rely on therelevant provisions of the Companies Act when this article analysis the conditions,thereasons and the results of the termination of contract. Especally if we want to answerthe questions about that the impact on the termination of the contract which comesfrom the first refusal, the conditions,the reasons and the results of the termination ofcontracts in these contracts which belong to equity transfer contract of the nominalshareholder and defects equity contracts.Until now the regulations of the law about termination of the equity transfercontract are rare at home and abroad, but there exist more mature theory oftermination of the contract.to resolve some questions the writer draws on the maturetheory, combined with contract law and corporate law and its judicialinterpretation.The writer want to show the preliminary view on the basis of analyzingthe questions citing which may appesr during the termination of the equity transfercontract. This article belongs to the kind of the articles of the pure theoreticalanalysis,there were no many cases which is concerned with the defects of the writerwho does not have enough in-depth knowledge.So there may exist the mistakes ofchooing the view of thinking,and the methords of resloving the relavent questionssupplied by the writer may exsit some defects.Under the guidance of instructors thewriter also try to constantly revise in order to be able to improve the quality andpractical value.