Analysis On The Case Of Shares Comfirmed Dispute Between Qidi Co.,Ltd And Guohua Co.,Ltd

The Qidi Co., Ltd in Shenzhen and the Guohua Co., Ltd in Zhengzhou signed two treaty to cooperate with each in running school.According to the contract,they set up a new company which the Qidi Co., Ltd take a stake in education resources accounting for 70% of the shares,and the Guohua Co., Ltd is responsible for all monetary investment accounting for 30% of the shares. Because of the co-ordination failure, controversy about the ownership of the shares appears.Each court entered different judgement that supporting different parties.Court of first trial support the Guohua Co., Ltd since the judge thought the contract is in violation of the law so it is invalid.And at last the supreme people’s court has changed the verdict on the basis of the freedom of will.This paper summarizes that the disputed points are the validity of treaty,application of law and the owner of the equity.Then it makes the conclusion about each disputed points on the premise of theoretical analysis. It includes that the previous contract is invalid and the second contract is legal, the original court made mistake on law application, and the controversial shares belong to the Qidi Co., Ltd in Shenzhen.Besides, this case arouses the deeper reflection on other capital contribution forms forbidden by company law.It is suggested that the legislators should change their views on the company’s capital so that more and more forms can be invested to limited liability companies.And their participation in the company’s business activities can make economy more active.