Company’s Equity Interest In Deadlock Compulsory Transfer Of The Legal System

Companies Act1994, a limited liability company’s shareholders must be two or more. The provides a direct result of the legal practice in the presence of a large number of small companies, and due to market various changes during operation, these small companies can easily fall into financial difficulties and decision-making stalemate, and then rely on this impasse Law difficult to solve, often required by specific legal channels. Now the "Company Law" stipulates that when an impasse when Co. dissolution of the company through this pathway can be resolved. But the company is not only an impasse that is costly and the dissolution of the company actually ineffective. In practice, most cases choose to adopt an equity transfer way to solve disputes between the shareholders the company to break the deadlock. As the "Law" is not a limited liability company under the equity transfer deadlock state mandatory requirements, resulting in actual operating conditions harsh, difficult to guarantee timeliness and other phenomena. Therefore, this paper proposed the "Company Law" to increase the equity transfer force to resolve the impasse predicament Ltd.The main contents and innovation lies in the paper is, combined with the current judicial practice and the concept of Limited deadlock mainly formed of factors, cited theory and practice four methods break the deadlock in the company and their respective advantages and disadvantages, then, further elaborated in response to force equity transfer is unique and inadequate corporate deadlock, by studying now the "Company Law" and relevant judicial interpretations, learn from foreign advanced experience in the legislative and judicial, efforts to explore the one which can protect the interests of shareholders but also to safeguard the healthy development of the market economy the main road.