Liability Company Shareholders’ Pre-emptive Rights Regime

Modern economic life, equity often change, limited liability companies have closed andpeople together, have a significant effect on the movements of the options and the newshareholders of a limited liability company. The shareholders’ pre-emption has the followingcharacteristics: First, the shareholders’ pre-emptive rights is established based on the need forlegislation, rather than equity inherent form;, shareholders’ pre-emptive rights is different fromthe general right of non-transferability; Third, give priority to the purchase, shareholders right tosubstantive rights; Fourth, the shareholders’ pre-emptive rights with timeliness.Is necessary to establish the interests of the shareholders’ pre-emptive rights to protect theoriginal shareholders of the Company, but also plays an important role. First, help to break thedeadlock, to resolve disputes between the shareholders. The establishment of limited shareholderpurchase rights intended to provide the way of a solution to resolve the disputes between theshareholders. Second, to reduce the risk of shareholder exit, for a limited liability company, therelative stability of the shareholders is very necessary for the protection of the company’sdevelopment and sustained profitability, establish the pre-emptive rights of the shareholders forlower due to movements of the options to the company impact has a very significant role. Again,increase the company’s operating costs, new shareholders may cause had to re-negotiate theoriginal agreement between its invalid and shareholders, new shareholders may reduce thedegree of trust between the original shareholders, to break the existing shareholders between theoperational mechanisms, to increase the company’s operating costs. Finally, it is beneficial to theshareholders of the Company to achieve control of the company, from the legislative intent ofthe point of view, the Companies Act reason why the provisions of the shareholders ’pre-emptiverights, the purpose is to ensure that the shareholders of the Company through the exercise of theshareholders’ pre-emptive rights to achieve the company’s control and maintenance their vestedinterests. In summary, for the shareholders’ pre-emptive rights research has important theoreticalsignificance, but also better able to guide the judicial practice.I In this paper, the combing of the case and the issues related to the legal analysis of the nature from the shareholders ’pre-emptive rights, the exercise of shareholders’ pre-emptive rightsand legal protection of shareholders ’pre-emptive rights a comprehensive analysis of the existingproblems of the shareholders’ pre-emptive rights in China at this stage, as well as related improvemeasures. This article attempts to make up for the shareholders’ pre-emptive rights theory ofperfect disputes arising due to the lack of this stage theory in practice, so as to achieve thepurpose of better resolve disputes.