An Analysis On The Legal Status Of The Dormant Investor In China's Corperation Ltd

In recent years, with the development of national market-oriented economy, the companies achieved their long-term evolutions in quality as well as in quantity. Inevitably, problems which come along with this tendency are growing in number and varying in types. For instance, the issues of dormant investment exist commonly in many corporations. What's the legal status of dormant investors? Do they quality themselves for the shareholders? What's the criterion? What's the legal nexus between dormant investor shareholder and the third party that is profit-related ?However, as for these issues, the legislative body hasn't formulated regulations and stipulations in the prevailing law. At the same time,being lacking in systematic theoretical research is another barrier to deal with these matters.So, the relative limit on legislation and theory makes it difficult to certify the legal status of dormant investors in practice. In virtual judicial adjudication,the local court always gives its own ruling according to self-understanding of dormant investment. This practice actually has undermined the unity and authority of the law. All in all, it can attribute to the indefinite criterion of identifying that whether the dormant investor possesses the shareholder-qualification or not. In view of the practice and theory,this paper attempts to make an academic approach on the legal status of dormant investor, and provide an assistance for handling those issues above.This paper is divided into five parts.Part 1 provides an overview of a specific case which acts as the study object throughout this paper. In this part,it briefly introduces the basic situation and the adjudication in the first and second instance of this case.Part 2 attempts to generalize the bone of contention in this case. By exploring the process that the charges and countercharges hurled back and forth, the focus of controversy comes into being:how to identify the legal status of dormant investors. In writer's eyes,the bone of contention mainly involves two factors in the field of law:the identification for dormant investors of shareholder-eligibility and the legal nexus between dormant investor,shareholder and the third party who is profit-related.Part 3 concentrates on the analysis and comments on the legal issues which are related with the bone of controversy in the case. It contains the following four aspects:(Ⅰ) the basic theoretical information about dormant investors. (Ⅱ) the identification of shareholder-eligibility in the limited liability company. (Ⅲ) the identification of shareholder-qualification for dormant investors.(Ⅳ) the relationship between dormant investors and the legal-related party that engages in the dormant investment. In this part of writing, the writer intends to refine the concrete ideas to deal with the issues of dormant investor's legal statusPart 4 focus on the analysis about the legal status of person A in a the typical case. While adhering to the two basic principles and the specific train of thinking in handling the legal status of dormant investor which have mentioned in part 3, the writer makes an effective comment.Part 5 displays the results of research. On the basis of the typical case,the writer expands the horizon of his thinking. By dissecting this case,the writer comes up with his own idea of identifying the shareholder-qualification and put forward a view on standardizing the dormant investment behavior.