Research On The Exercise Of The Shareholders Right Of First Refusal In The Limited Liability Company

With the continuous development of our country socialist market economy,equity has become one of important form of investment.However,the regulation of shareholder's preemptive right is not clear and perfect,that disoriented shareholders in poor when they exercise the right of first refusal.Therefore,it is particularly important to clearly define the shareholders right of first refusal.In the case of equity transfer dispute,the plaintiff Ji v.the defendant company A,C company,the focus of controversy are:firse of all,the defendants terminate the equity transfer agreement whether affect the plaintiff exercise the right of first refusal;second,the stand of the “equal terms”.The legal issues are involved in the case are as follow:First,the nature and effectiveness of the shareholders right of first refusal;second,the equal terms of the shareholders right of first refusal.The view that shareholders preemptive right is a right of formation is widely accepted by scholars and practitioners.The Court of first instance didn't considered the particularity of priority right of shareholders,lead a wrong decision.