Of A Limited Liability Company Shareholders Retire Equity

Once disputes around benefits happen, shareholders in limited liability companies will encounter various close corporation problems in withdrawing from the company, which will cause interest loss to shareholders. This paper mainly studies the withdraw right of shareholders in the limited liability company through which they can exit smoothly and their investment interests can be protected in an efficient way. At present, China's corporation act has initially established a system on the withdraw right of shareholders in limited liability companies in order to settle withdraw disputes. However, there are still many shortcomings. Thus, the system needs continuous improvement to fully exert its function in the protection of shareholders'interests.The paper consists of the introduction, the conclusion, and the following three sections.Section 1: The Birth of the Withdraw Right System and the Theoretical Basis. This section starts with a brief introduction of close corporation problems and a detailed analysis of its causes. Then the section illustrates the historical development of the withdraw right systems in different countries based on two law systems. And the theoretical basis for the withdraw right system is explicitly discussed.Section 2: A Comparative Analysis of Different Withdraw Right Systems. Laws on the withdraw right systems in four typical countries (America, Britain, Germany, and Japan) are analyzed and compared from the perspective of two main law systems. Differences between the systems in four countries are summed up in the end.Section 3: The Current Situation and Possible Improvement of Shareholders'Withdraw Right in Limited Liability Companies in China. This section gives an introduction of related articles in China's corporation act on the withdraw right of shareholders added with an analysis of the disadvantages of China's system. Based on Section 2, some suggestions on perfecting both the substantive law and the procedural law are proposed to improve the withdraw right system in China.