The Dormant Equity Inherit Of The Limited Liability Company

"Company law" article76clearly stipulates:“After the death of a natural personshareholder, the inheritor may inherit the shareholder’s qualifications, unless it isotherwise prescribed by the articles of association”. This provision provides a legalbasis for inherited equity after the death of natural person shareholders. But it iscomplex in practical operation and needs an urgent theoretical respond due to its highprinciple.Through access to the relevant information about the dormant shareholderequity succession issues of the current academic, studying equity inherit is seldomdiscussed from the perspective of the law of succession so as combining the dormantshareholder with equity inheritance.This thesis divides dormant shareholders into thefollowing types: complete dormant shareholders, incomplete dormant shareholdersand semi-dormant shareholders; express agreement dormant shareholders andnon-express agreement dormant shareholders, etc. On the basic of the detailedtheoretical explanation in the succession of dormant shareholders equity, the thesisanalyzes the profit conflict between undisclosed investor with the other shareholdersof the company, the profit conflict among the creditors, the conflict between thedormant shareholders and the creditors of the company. Meanwhile, this thesis putsforward a clear theoretical answer and legislative proposals to improving dormantequity inheritance system in limited liability companies, including the protectionissues of creditors in dormant equity inheritance and special protection of flawsundisclosed equity heir.