On Cognizance Standards Of The Shares’ Bona Fide Acquisition

In view of the implementation of "The Supreme People’s Court Provision On the Application of’People’s Republic of China Company Law’On Several Issues (Ⅲ)" Article26and28, establishing a system of the shares’Bona Fide Acquisition (BFA) on February16,2011, this article will focus on the study of the cognizance standards of the BFA of the limited liability company’s shares in the company operation and the judicial practice so that cognizance standards will be regarded as the connection point between the provisions of law and judicial interpretation and practice application. Under the premise of the theory with practice, this article will research "Property Law" Article106, paragraph1, provision on the common constituent elements to the BFA as a starting point, and then take each of tangible or objective materials in support of the elements in practice into consideration as object of analysis and research. By means of legal logic and rules of thumb, this article will sum up cognizance standards of the BFA in shares change detailedly, highlighting its feasibility and maneuverability.This article includes introduction, body, conclusion of three parts.Introductory section describes the research background, the significance of the topic and the whole idea of the full text.Body includes five chapters. The first chapter is an overview on the shares’ BFA in China. The second chapter deals with the cognizance standards of the appearance of having no right to dispose.The third chapter discusses the cognizance standards of the transferee’s goodwill. The fourth chapter discusses the cognizance standards of the reasonable consideration.The fifth chapter discusses the cognizance standards of the statutory registration completed.The final conclusion emphasizes that establishing system of cognizance standards is an inevitable requirement for the implementation of the shares’BFA system. Any of the standards are derived from practical experience, and necessary to be proved by practice, which will follow change and development of the shares’BFA system, advancing with the times.