On The Inheritance Of Equity Of Limited Liability Company

The original shareholders’death leads to the fact of shareholding inheritance, and it will undoubtedly result in a wide range of changes for a limited liability company, which has few shareholders in general, and bring far-reaching effects afterwards. If this problem cannot be handled properly, it will be easy to cause internal crisis of confidence affecting the efficiency of company’s management, and lead to the tragic ending of forced dissolution based on corporate deadlock in some serious cases. Although Chinese "Company Law" Article76has offered a legal arrangement for it, the terms are too abstract to solve series of problems in practice, which occurred in the old and new shareholders alternating phase.This thesis discusses the issue by the structure of raising, analyzing and solving the problem of inheritance of shareholder’s rights in China. Firstly, based on the doubt about inherent inherited rights of property and non-property rights, the thesis focuses on the relation and contradiction between personal nature in corporation and changes in people’s relationship, and leads to the problem of inheritance of shareholder’s rights in Limited Liability Company with the preface of two cases. Secondly, to figure out inheritance of shareholders rights’details, thesis analyzes this problem through three levels-interpretation of Article, induction of controversial point in practice and multiple perspectives on its specific impacts. Finally, the thesis provides some proposals on risk preventions by the thinking of "benefit weight", suggest shareholders of a limited liability company pay attention to do some financial arrangements before death, and separate the ownership and management of company as soon as possible. Also, they can develop reliable professional managers inside timely or consider setting up a testamentary trust, in order to inherit wealth in a better way.In addition, the thesis also provides some suggestions on how to deal with corporate deadlock in judicial process more effectively refer to foreign legislation. Our country is suggested to be introduced into the system of compulsory acquisition of shares in the corporate deadlock disputes. The court are suggested to add necessary pre-mediation process before making the final judgment, and make arrangements in liquidation together when the judgment is made.In this thesis, we have investigated the issue of shareholding inheritance from theory to reality, based on a number of actual cases. We look forward to help keep well balance between personal nature in Limited Liability Company and protection of people’s right of inheritance or legacy. And wish it could help Shareholders, companies, and successors handle the complex influences of this issue properly at the same time.