A Study On Legal Issues Of Inheritance Of Shareholder's Rights In The Limited Liability Company

The inheritance of shareholder's rights in limited liability company is a particular behavior, which occurred in existing period of company due to the death of a natural shareholder. Owing to the specificity of shareholder's rights, it is necessary for limited liability company to handle the relations of rules between Corporation Law and Inheritance Law. When relative scholars in domestic studied the issues on inheritance of shareholder's rights, they hold inconsistent cognitions on object of inheritance of shareholder's rights . The phenomena above are caused by the individual understanding or confusion on legal concepts. On the basis of inheritance system, object of inheriting needs to meet certain requirments. As an independent civil right, the property, non-personal specific and the transfer of ownership of shareholder's rights have indicated that it can be inherited. Unlike most heritage, the inheritance of shareholder's rights can not be separated from the study of the heir. There are three main options to determine the heir, which is determined by statutory succession, testamentary succession and articles of association. The inheritance of shareholder's rights also faces the special heir with the question of the inheritance. Company practice must be combined with specific analysis of relative laws and regulations. As the product of the company system, adapting the inheritance of shareholder's rights in limited liability company have been limited by articles of association. In practice, limitations on inheritance of shareholder's rights mainly shows as follows:limitation on right of inheritance of shareholder's rights; limitation on division of shareholder's rights which is being succeeded. Though the 76^th term of current Corporation Law have regulated the inheritance of shareholder's rights in limited liability company, the legislation is relatively rough, without further consideration of details and related procedures. For protecting the rights of heirs and ensuring the successful completion of inheritance of shareholder's rights, we should modify the law procedure in two aspects: the exercising the right inherited , the legal recognition of heirs' shareholders' qualification.