Study On Judicial Intervention In The Contract Dispute Of The Limited Liability Companies In China

Ever since companies have formed, participants have been engaged in a long fight. The interests imbalance of the controlling shareholders and non-controlling shareholders has existed. So has the interests imbalance of the owners and operators. Therefore, practitioners as well as theorists have been seeking for some reasonable external forces to interfere in the company’s governance. They want to balance the interests of all sides. The judiciary is the final community which solves social disputes. It plays an essential role in corporation governance. Compared with the legal way, the contract is more arbitrary, which means a limited liability company will produce more contract disputes than a company limited by shares. With the disputes increasing, judiciary has to intervene into internal governance in the limited liability company so that it can help the interested persons.Based on this, the article will mainly discuss the topic about the contract disputes and judicial intervention in the limited liability company. The main contents are as follows:The first part will focus on the legitimacy of the judicial intervention in contract disputes in LLC. It aims at solving the problem why judicature intervenes in contract disputes in LLC. As is well-known, judicial intervention in contract disputes in LLC conforms to the development trend of corporate law legality, indicating that it is legal that judiciary intervenes in contract disputes in LLC because it can deal with a lot of contract dispute problems which arise in practitioners in LLC. Besides it can also make up for contract "gap" in LLC. The judicial intervention is an effective system for the external governance of LLC. It plays an irreplaceable part in keeping the company’s functioning well.The second part will explore the conditions and the boundaries on judicial intervention in contract dispute in LLC. Because the company contract has its own characteristic, such as organization and so on. There are some differences between the condition of judicial intervention in LLC and the condition of the market. The section will discuss the two special conditions about judicial intervention in contract disputes in LLC. One condition is that the company contract must go against the essence of the company. The other condition is that the interests of the company stakeholders is damaged by the company contract. At the same time, by the way of comparison and analysis as well as on the basis of analyzing the relationship between judicial remedies and other governance systems in LLC, this section explores the boundaries of judicial intervention in contract disputes in LLC. Its purpose is to clarify the boundaries of judicial intervention in LLC.The last part will argue about the path of judicial intervention in contract disputes in LLC. Because the company system starts later than other countries, the law study of judicial intervention in corporate governance is not well developed. As for its path, there exist a lot of problems. After analyzing the part, the paper will put forward there pieces of improvement advice. They are that judicial intervention in contract disputes in LLC should be rational from the judiciary, that the systems of litigation and non-litigation about judicial intervention in contract disputes in LLC should be further improved.