On Judicial Relieves Of Corporation Deadlock And Legislative Improvements

As one form of modern enterprises, corporation has become the most important and dynamic main body in market-oriented economy. With the development of the economy, there are some problems occurring in the managements and operations of the corporation, and corporation deadlock is one of them. That more and more lawsuits are brought to the court brings both to academics'and other people engaged in legal practices'great attention to this issue. Focusing on the limited liability corporations, this article analyzes the problems of corporation deadlock existing in it and explores the judicial relieves to the issue concerned. Through introducing the meaning and the classifications of corporation deadlock, the author analyzes the causes and the harmfulnesses of the above issue. Meanwhile, the author in this article ponders over the current situations both of legislation and judicial practices, and points out the legal impediments under the current legal system which prevent to resolve the problems of corporation deadlock. The new tries both in legislation and judicial practices illustrate the necessity of judicial relieves to corporation deadlock. For this point, combing introducing the relative systems of other countries with the current legislation and practices in our country, the author put forwards some suggestions to resovle the problems of corporation deadlock, including the system of corporation dismissal, the system of compulsory shares transference, and the system of temporary director appointment and so on.This article consists of six parts. In the preface, the author intrudes the emergence of corporation deadlock as well as its harmfulness, and points out that currently the judicial relieves on this issue is quiet limited. This deficiency brings about the necessity of legal perfections on the issue of corporation deadlock consequently. The preface also illustrates the meaning of making explorations on this issue and lays a foundation for the further discussion in the main body. On the bases of case analyzing and an introduction of the current situations of corporation deadlock, as well as its definition and classifications, the second part of this article analyzes the causes and the harmfulness of this question. Since there are more and more lawsuits of corporation deadlock presenting in the socialist market-oriented economy, the author advances that it's necessary to make perfections of judicial relieves as well as legislations such as Corporation Law, for the purpose of improvement of socialist market-oriented economy. In the third part, the author analyzes the legal theories of judicial relieves to the issue of corporation deadlock, and points out that in order to make perfections of corporation legal systems, judicial relieves are indispensable which are also important to protect the corporation, the shareholders, the interested parties and the economy. Meanwhile, the author makes detailed introductions of the contents of relative systems of other counties, which might provide useful references for us. In the forth part, it makes a comparison between the different results of the corporation deadlock cases according to stipulations of former Corporation Law and the amended one. Although the amended Corporation Law provides principle rules for judicial relieves in 183rd article, it's still necessary for the legislative departments to make detailed explanations on this issue owing to the simple current articles. The fifth part mainly illustrates the contents of the judicial relieves to corporation deadlock. The author sets forth the basic principles for the establishment of the system of judicial relieve to corporation deadlock. Under these principles, the system of corporation dismissal, the system of compulsory shares transference, and the system of temporary director appointment might be helpful to enrich the contents of judicial relieves to corporation deadlock, and provide better protections both to the corporation as well as the shareholders. Finally, the author emphasizes in the part of the conclusive remarks that both the judicial relieves and the improvements in legislations are indispensable to solve the problems of corporation deadlock. It's essential to establish a variety system of judicial relieves and make constant improvements, catering for the development of market-oriented economy and the resolvement of different kinds of corporation deadlock cases.