Limited Liability Company Equity Pledge Legal Problem Research

Limited liability company equity pledged, as one of rights pledges, whichestablishment of the right quality in the equity to secure claims. This is conformd bythe "Company Law"," Guarantee Law " and "Property Law". Equity pledge emergesmeet the need of continuos economic development. It not only reflects the value trendof property law, but also plays an increasingly important role in the modern economicand social life. Because equity of the limited liability company is different from otherrights. It is unique and more complex issues are involved. With the continuousdevelopment of the credit economy, the existing limited liability company equitypledge system is no longer adapted to the needs of the current situation. In this paper,base on China’s Company Law, Guarantee Law and Property Law, combined withequity pledge law of the limited liability company in foreign countries. It is to explorehow to build and improve the equity pledge system of the limited liability company inChina to meet the new situation and the growing needs of the social development andplay its due role from equity, equity pledge, and the equity pledge of limited liabilitycompany’s establishment, conditions, limitations, effectiveness and several otheraspects.The research of Limited liability company equity pledged focuses on analysis ofthe legal conditions and restrictions of limited liability company equity pledge andseveral factors influence the effectiveness of pledge, and combins with the issue of"an equity being pledged twice", make more comprehensive analysis and discussionof equity pledge system of the limited liability company. The conclusion is as follws:Athough there is no legal regulation about "an equity being pledged twice ". In Chinawe have seen many academic arguments at the same time. From the perspective ofdevelopment trend of security interest, mortgage and pledge are showing a trend ofmutual integration. Equity pledged as one of collateral rights, can be divided intoseveral pledges based on Limited liability company’s need for equity value exchangs.To avoid shareholders of the Company can not get the cash flow resulting inqualitative defects occur because of the quality program cumbersome, we need toreconsider and design the limited liability company operating procedures pledgesystem, thereby consummates the equity pledge of limited liability company in our country, ensure that the limited liability company and the interests of shareholders notbe compromised by equity flaws in the quality.