A Study On Shareholder Expulsion System Of Limited Liability Company

For characters based on shareholders of the limited liability company, what isrequired now for Limited liability company governance and development is goodfaith cooperation and work together between shareholders. Once the tight trustrelationship is destroyed by individual faithless shareholders, it may bringimmeasurable losses to the other shareholders and the company. In this case,Company rational approach is to dismiss faithless shareholders. Therefore, this paperexplore the theory related to Shareholder expulsion system, and point out thetheoretical foundation of the system. As an important legal system of company law,Shareholder expulsion system has the important function of value which mainlydisplays in solving the internal contradictions and conflicts of interest, maintainingcompany community continues and protecting the investment enthusiasm of honestand trustworthy shareholders. So, it has become a development trend of the moderncompany law legislation to give the company the right to expel faithless shareholdersfrom stockholder list.It is a pity that the system did not cause the attention they deserve in two majorCompany law of legislative process in our country. Our country "company law"provides shareholder derivative lawsuit system, dissent shareholders equityrepurchase request system and the judicial mandatory dissolution institution. Thepurpose is in order to solve the problem of bad faith and no cohesion of individualshareholders. However, as a way of shareholders or company right remedy, thefunction of these systems is limited after all.So, this is a kind of inevitabledevelopment to establish shareholder expulsion system in Our country "company law".Although shareholder expulsion system is introduced into "The supreme people’scourt on company law of the People’s Republic of China (3) the rules some issues ofapplicable", but the explanation for the regulation of shareholder expulsion system istoo simple so that it is unable to play its proper function value.Shareholder expulsion system has certain punitive, and the essence of it is toforcibly deprive faithless shareholders’ qualification. Therefore, the law should strictlylimit the company to exercise the rights of shareholder expulsion. When the companyexercise the rights of shareholder expulsion, it should find a balance point betweenprotecting the legitimate interests of the other shareholders and the company and maintaining the legitimate rights and interests of faithless shareholders. The systemshould make corresponding regulations from substantial elements of Shareholderexpulsion system and the judicial relief of faithless shareholders, etc. The aim is toprevent the system to. become. the tool by which big shareholders to push out smallones and infringe upon the lawful rights and interests of the small shareholders.