Research On Legal Issues Of Shareholding Entrustment In Limited Liability Company

Shareholding Entrustment also been explained as a kind of dormant investmentbehavior.It is a world-wide economic phenomenon caused by multitudinousreasons.Many foreign countries already have specific legal institutions to dispose suchproblem,such as common law countries’ trust system.But the situation in China istotally different,lots of complex disputes are still difficult to solve because of the lackof legislative supervision.So the research on shareholding entrustment has been a hotspot in the theory and practice field in our country.Most of the theory research focuson the point of the legal status of dormant shareholder which has formed three kindsof views that result in controversy.Even though these theories have definite value,theycan not be used as a guidance to perfecting the legislation for their disunity. And inpractice,the court also encounter major difficulties during trial when handle withplenty of disputes which are caused by dormant investment without clear legalregulation. Based on the reality,make a deep legal research on ShareholdingEntrustment is significant for the improvement of legislation in the future.This paper mainly contains five chapters.Chapter one introduces the basic theories of shareholding entrustment,includingthe related concepts and characteristics.Then analyzes the causes of this behavior inChina.Chapter two analyzes the legitimacy of shareholding entrustment from the perspective of legal theory and economic theory.Secondly, indicates the harm of thisbehavior.This two-side shows that the special investment should not be prohibitedabsolutely, and the most proper strategy is putting the mode into the legal system.Chapter three mainly discusses the legal nature of shareholding entrustment.Onthe basis of commenting four kinds of pattern which used to contact dormantshareholder with registered shareholder,making the point that the Corporation Lawshould add clauses about ruling of shareholding entrustment.Chapter four focus on the qualification of dormant shareholder. On the premiseof the existing theories about shareholder status,the conclusion is that dormantshareholder can achieve a legal identity just when his dormant investment behaviorconform the specific conditions.Chapter five summarizes the current situation of legislation, then expounds theimprovement suggestions in two aspects, one side is to admit the shareholdingentrustment discriminatively,the other side is to set up detail conditions about theconfirmation of dormant shareholder’s qualification.