The Protection Of Minority Shareholders’Rights In Corporation Deadlock

The company is an important part of economic structure of a society, bearing the interests of the company, the shareholder and the society. In recent years, the corporation deadlock problems easily occurred in limited liability companies. Conflict or disagreement of interest is between the company managers and the shareholders, which leads to the deterioration of human relationships. The company often does not run well, even causes the company’s operating mechanism complete failure. The general meeting of shareholders, board of directors including supervisors, which is the institution of authority and management mechanism, can not make any decision on any matter. All affairs are in a state of paralysis, the normal operation of the company comes to a deadlock.When corporation deadlock appears, the normal operation of the company is paralyzed, the interests of the company, shareholders, creditors, and the society all take varying degrees of damages. Especially the interests of minority shareholders in the company will suffer more damages, because the minority shareholders are in a weak position in the company, and will not get effective relief. Companies pursue the interests of the company, and also need to take care of the interests of shareholders, in particular the interests of minority shareholders. In that case, it can effectively keep the investors’ investment enthusiasm, maintain the sustained and steady development of the social economy. So how to protect the interests of minority shareholders in the corporation deadlock is more and more important.This paper is divided into four chapters, discusses the protection of minority shareholders’ rights in corporation deadlock in detail. First analyzes the typical case of a corporation deadlock to lead the issues discussed in this paper. The interests of minority shareholders damages are very serious. How do the minority shareholders to seek relief? The first chapter analyzes the general theory of the corporation deadlock from the concept, characteristics, classification, causes and damages. The second chapter discusses the scope of the minority shareholders and some characteristics, knows the reason why the minority shareholders is vulnerable, and the necessary and practical significance for protection of minority shareholders’ interest. The third chapter compares the domestic and foreign company law on the deadlock problem, introduces the measures to protect the interests of minority shareholders. The fourth chapter discusses the progress and shortcoming in our current Corporation Law about the corporation deadlock. Hopefully, this paper is useful to our judicial practice, company legislation and a lot of minority shareholders in corporation deadlock.