To Explore The Company Deadlock And Its Solution

Corporate deadlock occurs often in the course of the company's practice. It has complicated causation, and it has deal with all the parties in the company and the company system. Furthermore, in some degree, it cannot be avoided. Serious corporate deadlock frequently leads to company's normal business on the verge of a standstill, and its organizations in a paralyzed state, and furthermore, this state can do seriously damage to the company, shareholders, stakeholders and the whole society. So, it is necessary to deal with it in some legal response and regulation. In reality, it is a major issues for most countries in their theoretical exploration and practice of the company law that how to find an effective way to prevent and resolve corporate deadlock. Although our new company law and relevant judicial interpretations has made some appropriate provisions of the impasse, that is, we have stepped forward the first step, from the overall point of view, they are still too rough, in lack of maneuverability, and have more defects. In many other country, they study the corporate deadlock early, and have already form relative self-contained relieve mechanism. Considering the fact that our related regulations, judicial relief or non-judicial remedies, are still not in a perfect state, based on advanced experience and judicial practice of United States, Germany and other countries, I put forward some suggestions and practical proposals against corporate deadlock under our existing legislative system:Making good use of the company's articles of association to make pre-arranged relationships and take preventive measures; More attention to non-judicial mediation and larger freedom to company's self-rule in dealing with corporate deadlock; Playing the important role of commercial arbitration, to minimize the negative impact of corporate deadlock to the greatest possible degree; Introducing compulsory share purchase mechanism, and trying best to maintain the company's business; Establishing judicial separation system in company to make a reasonable balance among different interests; Perfecting the system of judicial dissolution of company, which is the last line of defense.