Legal System For Shareholders' Exit From The Company

The company is the most important form of economic organization in the market economy.The protection of all shareholders' interests is conducive to the healthy operation of the company and the social welfare,thus improving the investment activity of the public and optimizing the business environment.The nature of shareholders as investors determines that each shareholder has different options in investment.Therefore,in some cases,shareholders' intention to exit should be respected by the company and the society.The exit system is an important means to protect shareholders' interests.In addition,as an economic organization,the company has an independent legal status and its own independent goal--namely,to maximize his interests(including the maximization of shareholders' interests and the maximization of the company's own interests).The characteristics of a limited liability company(LLC)determines the relationship between shareholders,and the trust interests will affect or even determine the success or failure of corporate management.When the existence of some shareholders leads to increase the corporate governance costs,or the trust benefits between some shareholders and others disappear,these shareholders should also be able to voluntarily or be forced to exit the company and be given appropriate compensation.Designing the shareholder exit system in the field of commercial law has become the consensus of national legislatures all over the world.Since the company law was enacted in China,the basic framework of shareholder exit mechanism has been formed.However,the design of shareholder exit system is too simple and the framework is not perfect.There is not enough theory and intensity of the research in this field.Moreover,the applicability is not strong enough.Compared with western developed countries,there is still much room for improvement in terms of legislations and procedures.The abovementioned problems can be solved by expanding the scope of applicable requirements of various exit paths for shareholders.defining the "fair price" and evaluation procedures for exiting shares,and designing looser and reasonable procedures to make the exit smooth.In addition to the introduction and conclusion,this paper is divided into five chapters.Chapter one and Chapter two introduce the relevant concepts and classifications of shareholder's exit,analyze the practical and theoretical basis,and the importance of this system from the two aspects:efficiency value and equity principle.The third and fourth chapters comment on the shareholder exit system in LLC under domestic and foreign legislations,judicial practice and theoretical research.The last chapter is the author's suggestions and summaries on the deficiencies.The suggestions have two folds:broadening the new channels for shareholders in LLC and improving the existing procedures.