Company's Operational Risk Prevention And Control When The Controlling Shareholder Divorces

Equity division of a couple's divorce is not stipulated clearly in China's current Company Law of the PRC,Marriage Law of the PRC and their judicial interpretations.However,equity division is not only concerns interests of both parties of divorce,but also refers to interests of the third party,such as other shareholders,company,company's creditors,which leads to the solution of equity division is disputable in academic field or in practice.In this context,how to dispose of equity division of natural-person shareholder of a company in divorce legally and legitimately becomes valuable.This dissertation clarifies controversial views on whether equity could be common property of a couple and discusses tremendous influence of equity division based on affirming the view that the whole equity should be deemed as common property of a couple and can be divided when a couple divorces.This dissertation puts forward suggestion to improving company's risk appetite when shareholder divorces relying on soft law from the perspective of the company.This dissertation includes preface,main body and conclusion.The preface introduces writing context and value of this dissertation;the conclusion summarizes content of this dissertation briefly.The main body is divided into three chapters,which studies what measures a company could take to in the case of equity division of divorce of a company natural-person shareholder.Chapter 1 argues equity should be deemed as common property of a couple to be divided.This chapter affirms the legitimacy of equity deemed as common property to be divided from the legal perspective of nature of equity,inheritance of equity,teleological interpretation,reference of comparative law and the reasonable perspective of social stability,transferable share.Chapter 2 analyses the influence of equity division.This chapter points out danger of equity division of a company through judicial cases and discusses equity division impacts on the listed process and listed stock market of a company planning to be listed.Besides,this chapter designs a certain scheme to deal with similar issues in limited companies based on current laws and regulations.Chapter 3 puts forward suggestions to preventing company's operation from the risk of equity division of controlling shareholders' divorce.This chapter proposes that not only controlling shareholders and company could take measures to prevent operation risk resulted from controlling shareholders'divorce with the help of soft law,but company could perfect management structure in virtue of board of directors,especially focuses on company bylaw to prevent company's operation from the risk of equity division of natural-person shareholders when they divorce.