The Corporation Deadlock:Non-litigation Relief And Judicial Intervention

With the rapid economic development, the corporation has become the most active subjective in market with the more frequency of the corporation deadlock happening. The corporation deadlock blocks the day by day functioning of company, which causes the serious damage to the corporation’s shareholders, stakeholders, corporation itself. The whole society can not escape the damage caused by corporation deadlock. Above all, exploring the root of corporation’s deadlock and the solution for corporation are both topics in field of corporation’s law. The current solution for corporation deadlock is either non-litigation relief or judicial intervention, which is lack of integrated solution. Through the comparison the respective advantages between non-litigation and judicial intervention, the paper seeks the best solution in different condition and improves the disadvantage between two ways. Regarding the first deadlock in joint-venture corporation as the entry point, with analysis on the deadlock in Shan xi Asian American-Daning Energy Co, Ltd, the paper finds the way for the relief of corporation’s deadlock and. The paper elaborates the non-litigation relief and the system of judicial intervention for corporation from fours perspectives.The first section:the legal characters of corporation:starting to connotation of corporation deadlock, the paper analyzes the corporation deadlock with character, types, causes and harm.. Through identifying types of corporation deadlock, we could differentiate and analyze the corporation deadlock under different circumstances better. In order to better understanding on the corporation deadlock, the paper analyze the corporation deadlock cause in consideration of internal and external sides. The paper expounds the harm caused by the corporation deadlock to the corporation itself, shareholders and stakeholders. Above all, the paper proves the urgency for the relief of corporation deadlock. The judicial intervention and non-litigation relief are both ways to deal with corporation deadlock. And judicial intervention is regarded as the most common way, which causes the paper select it as the entry path to discuss the corporation deadlock.The second section:the judicial intervention. Corporation Law in China provides the law basis for the judicial intervention, which is regarded as the final safeguard for the solution of the corporation deadlock. The constant endeavor on improvement for the related law system must be continued for modifying the disadvantages found in the program of legal practice. Also, the precondition of the judicial intervention must be regulated by the hard and fast rule. In the author’s opinion, the non-litigation relief is the best way to solve the corporation corporation deadlock.The third section is the non-litigation relief of corporation deadlock. With the deep cultural background and the perfect law system, the forms of non-litigation relief are flexible and diverse. In author’s view, there are four types of non-litigation relief. Firstly, it’s the self improvement of rule; Secondary, the shareholder’s rights transfer; thirdly, the application of conciliation; the final one the option of arbitration. Through specific elaboration, the paper explores the proficiency and applying scale for four non-litigation ways above and figures out the imperfections and proposes suggestion for improvement.The fourth section:By the comparison on advantage and disadvantage between judicial intervention and non-litigation relief, the paper finds out the best way to deal with corporation deadlock in different situations. Combining with the specific condition in China, considering on the connection between legislation situation and legal practice, the paper finds out the integrated point between two solutions of corporation deadlock for establishing the fine institution for solving the corporation deadlock. The paper also aims at providing the feasibility suggestion to legislation improvement in Corporation Law and law practice.