On The Expulsion Of Shareholders In The Limited Liability Company

Although Limited liability corporation (LLC)is one kind of Kapitalgesellschaft,it iswith strong personal relationship-oriented. Personal dependence among shareholders is ofcrucial importance to the LLC.The close corporational problems,which give rise to thecompany internal conflicts,have been the focus of legislation in various countries.When themisconducts or the personal circumstances of the shareholders ruin the personal relationshipof the LLC,producing trust foundation crisis among shareholders,the corporation operationwill be trapped in troubles,and the common interests of the shareholders will bedamaged.The remedy methods provided for the corporation and other shareholders inChina’s current “Company Law”,such as share transferring system,the withdrawingmechanism for shareholders,and the system of Judicial Dissolution in LLC etc, are not thebest choices for the corporation and the shareholders who want to continue thecorporation.The expulsion of shareholders in the LLC is the mechanism that directly acts onthe identity relations among shareholders,deprives shareholder’s identity by force accordingto the legal procedures.The expulsion of shareholders mechanism has irreplaceablesuperioriy on settling internal conflcts in LLC,has a positive impact on perfecting theinternal conflicts resolution mechanisms of the LLC,on the regulating the shareholdersbehaviors and on the securing the reasonable interests of the corporaion and the stayingshareholders.Meanwhile,the expulsion of the shareholders is established and recognised bymany countries.It is a great regret that we hasn’t established the expulsion of shareholders inthe LLC in our present “Company Law”.Based on the strong demand in the practice in ourcountry and solving the dilemma in judicial practice and company practice which due to thelack of legislation,it is necessary to introduce the expulsion of shareholders in the LLC.This thesis provides a systematic study on the expulsion of shareholders in theLLC,demonstrates the necessity and feasibility in transplanting the expultion ofshareholders,and puts forward my own ideas on constructing the specific operation rules ofthe expulsion of shareholders in the LLC.