On The Protection Of The Rights Of Hidden Shareholders In Enforcement

In recent years,it has been common for hidden shareholdings to be enforced by creditors of nominal shareholders in China,and the trend of increasing has become more apparent year by year.Since the law does not clearly stipulate the relevant issues concerning the enforcement of the unnamed equity,the court may have different performances and attitudes when dealing with action such as the action of objection complaints and equity confirmation.There are various attitudes and there is no authoritative interpretation towards this issue.To attach importance to the protection of hidden shareholders' rights in enforcement is conducive to the improvement and maturity of China's civil litigation relief system,and helps to avoid intensifying more social contradictions and promoting harmonious development.Therefore,based on the current situation in China,this paper starts from the point that the hidden shareholding can be enforced,discussing the issue of the protection of the hidden shareholders' rights in enforcement,It is expected to play a positive role in the construction and improvement of the hidden shareholders' rights in enforcement.This article is divided into five parts.The first part clarifies the nature of the hidden shareholders and nominal shareholders,and the relationship between the hidden shareholders,the nominal shareholders,the company and other shareholders and creditors in the commercial transactions and civil legal acts.This leads to the question of how the hidden shareholders receive relief after the creditor's application for enforcement.In current laws,the nature and legal status of hidden shareholders have been in a controversial state,lacking accurate definitions and uniform standards.The unclear legal status and nature have a great impact on the rights involved in the hidden shareholders.Therefore,it is necessary to analyze the legal status and nature of the hidden shareholders,which is the premise basis of this paper.The second part analyzes the predicament and necessity of the protection of the hidden shareholders' rights in China.Based on the current situation in China,this part will conduct an in-depth analysis on whether the court will enter into the enforcement of the hidden shareholding after the implicit shareholder entered the enforcement procedure.At present,there are two ways in which Chinese courts usually deal with: First,according to the principle of rights and appearances,the creditors of nominal shareholders believe that the enforced equity is owned by the nominal shareholders,although it is actually owned by the hidden shareholders.The enforced equity is registered under the name of the nominal shareholder so that it can be enforced;there is another way which from the perspective of substantive justice of dealing with it.If the hidden shareholding can be enforced,it must be truly owned by the nominal shareholder with no dispute on this.In this case,it can be enforced.When the ownership of the executed equity is disputed,the court cannot enforce the hidden share.In enforcement,whether the hidden shareholders can be protected and how to seek relief is closely related to whether the hidden shares can be enforced.Therefore,it is necessary to make a clear definition of whether the hidden shares can be enforced.The third part introduces how the issue of the legal status of the unnamed shareholders outside the domain is regulated and operated.Whether the executed shareholding can be enforced when the hidden shareholder disputes the hidden share in the enforcement and claims that he is the real right holder of the executed share.Facing this problem,how both the Anglo-American legal system and the civil law system treat the legal status and nature of the hidden shareholders and whether the courts can put them into enforcement.By comparing and referring to the practices of the two major legal systems,the conclusion of the premise is that the equity can be enforced,which may improve the legal issues of the implicit enforcement of the hidden shares of the hidden shareholders.The fourth part analyzes and examines the relief system and existing problems on the protection of hidden shareholders' rights in enforcement.In this part,we focus on the comparison between the case of the outsider's execution of the objection and the confirmation of the equity and the investigation of the specific system.Can the claim of equity confirmation and the case of the outsider's execution of the objection be raised at the same time? Can a hidden shareholder have a need to file a shareholding confirmation in another case? After obtaining the effective referee,can the effectiveness of the hidden share being enforced in enforcement be blocked? In the face of the case of an outsider's execution of an objection,what criteria should the court use for the evidence submitted by the hidden shareholder to be examined? These issues are worth studying and will be explored in depth in this section.The fifth part is to improve the remedy mechanism for the rights of hidden shareholders in enforcement.In response to the problems in the fourth part of the enforcement of the hidden shareholder rights protection and relief system,the corresponding improvements were made.The case of the outsider's execution of the objection effectively protects the rights and interests of the outsider in the process of implementation.However,in order to play a more effective role in the case of the outsider's objection,it is necessary to solve the problem of the relationship between the right-of-rights lawsuit and the objection lawsuit filed by the outsider,thereby protecting the rights of the hidden shareholders in enforcement.