The Problem Of Shareholder Oppression In China's Limited Liability Companies And The Improvement Of Legal Relief

In recent years,with the development of the market economy,there have been more and more disputes cases occur.most of them are occurred in limited liability companies.Due to their closed nature,limited liability companies often oppress minority shareholders through seemingly superficial corporate resolutions.When the court try such cases,their always did a formal review of the company's resolutions,ignoring the reality of shareholder oppression.which severely damaged the minority shareholder's legitimate rights and interests and inhibited the development of Chinese capital market.In this paper Zhou Jianzhen's case was analyzed to reveal the problem of the shareholder oppression problem in our country and the shortcomings in the legal remedy mechanism.Through overseas research on shareholder oppression theories and analysis of relevant foreign classic cases,we will improve relevant laws for our country in the future.The provisions are applicable to judicial practice to provide lessons and considerations.In this article the specific case of the case of Zhou Jianzhen and the judgment of the court were firstly reviewed.The issue of shareholder oppression reflected by the case of Zhou Jianzhen,and whether the resolution made by the company was legal were analyzed.The truth behind the company's resolution was hidden.What is the purpose of this issue? We had an in-depth discussion on the issues of shareholder oppression that are reflected in these issues and analyzed current research in china.We can conclude that shareholder oppression is common in limited liability companies.The root cause of that is the inherent characteristics of the limited liability company.Secondly the article summarizes the typical performance of shareholder oppression in limited liability companies.there are mainly 1.Position deprivation of the minority shareholder in the company.2.Modify the dividend distribution plan.3.Deprive shareholders' right to know.4.Controlling shareholders abuse company assets.In the end,several important theories on the regulation of foreign shareholder oppression were introduced.As to solving the problem of shareholder oppression,by introducing several methods adopted by the United States and Germany in judicialpractice,the legal remedy measures for improving the repression of the shareholder of Chinese limited liability companies were proposed,mainly from the dissolution of the judiciary,share repurchase,and the definition of shareholder oppression.The standard of behavior,and three ways to solve the problem,pointing out that the issue of shareholder oppression must seek judicial intervention.On this basis,China must take actions to make up for the shortcomings of the law in this regard as soon as possible,and provide a legal basis for resolving the issue of shareholder oppression.