Research On Legal Issues Of Shareholding Entrustment In Limited Liability Company

Shareholding entrustment is a way of financial capital operation, which has more positive significance in commercial activities. The main manifestations are absorbing social idle funds and maximizing the efficient allocation of funds. Meanwhile, it can protect personal privacy, and providing the valid path to investors to help them hide their own identity. Moreover, it can put stock together to maximize their own interests. At the same time, since the legal system is defective, investors who driven by interests in order to seek more benefit. Using the method to Avoid legal problems, which can injure the benefit of the company, other shareholders and creditors. During the process of the model of shareholding entrustment, dummy shareholder and the actual investor need to face different legal risk.Rules(3) on the supreme people’s court on some issues of applying the <company law of the People’s Republic of China> admits the effectiveness of the agreement of shareholding entrustment. Meanwhile it guides the legal issues. Of shareholding entrustment. The supreme people’s court on some issues of enterprises with foreign investment disputes provisions(a) regulations refer to the legal issues of shareholding entrustment, mainly including the contract’s validity of shareholding entrustment. And it makes detailed provisions on shareholding entrustment for the legal consequences if the contract of shareholding entrustment is invalid. But the company law has not the provision.By analyzing the Law, we can find that the conditions on deciding whether the actual investor become the shareholder are different.By analyzing different legal cases, we can divide the type of shareholding entrustment disputes into several categories. Mainly including stock ownership, the validity of agreement on shareholding entrustment, the shareholder qualification, and how to balance the benefit of actual investor and the nominal shareholder. To solve the problems, studying the article of the trust relationship, agency relationship and partnership theory to stake with the legal nature of shareholding entrustment.I concluded that we should stake the system construction of contract and identify shareholder’s qualification in solving the two aspects of shareholding entrustment. The main solutions are as follows: taking example by rationality, trust, agency system, and clearly prescribe the rights and obligations of both sides by agreements. Perfecting capital certificate of shareholder. Enhancing the liability for breach of contract strict. Through the shareholding entrustment agreement to protect the rights and interests better and reduce the occurrence of the dispute. As the perfection of the qualification of shareholders on shareholding entrustment, the author suggested to set up standardize the shareholders’ capital.The article mainly uses the typical cases and bases on the cases to summarizes the legal issues, and arising the judicial type from the disputes. Studying on the Contract Law and Corporation Law. According to the regulation system of indirect agency, exploring whether it can break through the relevant provision, which the agreement only can restrain the actual investor and the nominal shareholder. It can provide better relief path to protect their rights than before. In addition, basing on the stake legal nature of shareholding entrustment,studying the trust system of Anglo‐American law system deeply and put forward suggestions.In conclusion, basing on the causes and overview of the current legislation, and types of issues of shareholding entrustment,and the definition and legal nature of shareholding entrustment, and the structure of shareholding entrustment,to comb the structure of the entire article.Meanwhile, by using empirical analysis, comparative study between Chinese and Foreign Law and analysis method of history, to study the shareholding entrustment fully. And we can according to the study to provide suggestions and design the system for shareholding entrustment. [Key Words] Limited liability Company; Shareholding Entrustment;...