Study On LLC’s Bona Fide Acquisition Of Stock Right

For the issue about LLC’s bona fide acquisition of stock right, Commercial Appearance theory, transaction safety principle and information economic cost principle are the theoretical basis that can be relied on. In China, the specific alteration pattern of equity ownership for LLC is based on the establishment and validity of the contract of the equity transfer between the equity trading parties. And the register of shareholders and whether the industrial and commercial registration is altered will not influence the transfer of ownership.When coming specifically to analysis of constitutive requirement, as for the requirement of unauthorized disposal of transferor, it should possess some right appearance and the bona fide requirement should exclude the condition that assignee has gross negligence. The last constitutive requirement refers to the condition that contract of the equity comes into establishment and validity and it isn’t subject to the change of industrial and commercial registration of related items.As for the usual LLC’s equity transaction practices, the bona fide acquisition applies to these two conditions: dummy shareholder has no right to dispose the stock equity under his/her name; sale of equity to two parties. As for those conditions which have been legally recognized, the other conditions need to be analyzed case by case. In the condition that there appear flaws of the remote holder’s transaction and a spouse’s disposition of the community property without the other’s agreement, there is the possibility of bona fide acquisition. But bona fide acquisition is not applicable for the following conditions: one party of the transferors of share transfer be shareholder of performance shares, shareholders of feigned investment or shareholders who register in the name of another person and transferor transfers equity free of charge.The present is divided into 5 chapters. Chapter 1 introduces some basic theories about LLC’s bona fide acquisition. Chapter 2 analyzes the specific alteration pattern of equity. Chapter 3 analyzes the specific constitutive requirement of LLC’s bona fide acquisition. Chapter 4 analyzes the factors influence LLC’s bona fide acquisition. And chapter 5 analyzes the specific applicable problems in practice of LLC’s bona fide acquisition of equity and draws conclusion at last.