Study On Judicial Intervention System In Corporate Deadlock

The “Corporate Law of PRC” which revised in2005establishes the “judicialdissolution of a company” system for which is a significant progress in judicialsystem. However, the statement about the “judicial dissolution of a company” systemin corporate law is general and it is also difficult to exercise in practice. In China, theexisting law on company is still lack of well-established judicial system for thesettlement of corporate deadlock. Surrounding the legal issues of corporate deadlock,this paper introduces its definition, character, and harmfulness, and analyzes thetheory and value of judicial intervention as a remedy to solve it. Through comparingwith foreign judicial remedy of corporate deadlock, this paper offers suggestions toperfect the judicial intervention system.This paper consists of three parts:The first part discusses the relationship between company autonomy and judicialintervention. After introducing the meaning, value, forms and limitations of companyautonomy, it concludes that it is necessary to establish judicial intervention for solvingcompany deadlock.In the second part, this paper analyzes the theoretical basis of judicial intervention and its nationality of corporate deadlock, and concludes the foreignlegislation about judicial relief for China to learn.In the last part, this paper gives some suggestions to improve the judicialintervention in company deadlock. Not only value ex post relief system, it also needsto pay attention to prior prevention, such as compulsory equity purchase, theprevention by articles of association.