Limited Liability Company Shares Inheritance Analysis Of Legal Problems

May the heir inherit shareholder's rights when a shareholder in a limitedliability company dies?What rules should be abided by if the heir inheritsdeceased shareholder's rights?To answer these two questions,this articlehas made an intensive study from theories,legislations,practices and otheraspects,and formed an elementary academic and institutional system of theinheritance of shareholder's rights in the limited liability company.It is suggested that the deceased shareholder's rights in the limited liabilitycompany can be inherited by the heir.In the author's opinion,theinheritance of shareholder's rights is essentially a transmission ofshareholder's rights,with the characteristics of independence,integration andautonomy.Granting the inheritance of shareholder's rights and takingpersonal combination in the limited liability company into account,legislations of many countries and regions permit the company to makespecial provisions by articles of association;therefore,the company canexclude the inheritance of shareholder's rights.Chinese Company Law alsoadopts this legislative pattern.This article concretely analyzes several issueson the inheritance of shareholder's rights and the exclusion of inheritance.The inheritance of shareholder's rights in the limited liability company is acomplex issue which both relates to the protection of rights and interests ofdeceased shareholders and their heirs and the maintenance of personalcombination in the limited liability company.Basing on article 76 of CompanyLaw of P.R.C.and relying on articles of association,the company and itsshareholders should make arrangements for the inheritance of shareholder'srights in advance,in order to balance various interests farthest and promotethe smooth and steady development of company and the progress of economy.