A Study On The System Of Expulsion Of The Limited Liability Company

The limited liability company (LLC) is essentially one of the capitaljoint ventures, but it also has evident nature of person joint. And it is theidealistic invention of the legislators, which has been so popular withinvestors in Europe and America since it was created that up to now itbecomes the most abundant form of enterprises in most of the countriesincluding our country.In practice, with the drawbacks of the LLC, such as insufficientdisclosure of internal information, inadequate external observation andshareholders’ abuse of power, the LLC is often involved in disputes. Asconflicts among the shareholders will be evoked when the change of factorsof one shareholder himself or an activity of one shareholder contradicts theoverall interests of the company or other shareholders, the basis of thecompany’s person joint will also be ruined. And because of the naturalclosure of LLC, the company may be trapped in plight by one shareholderwhich may bring damage to the other shareholders, or even lead to thedismissing of the company. In our current system of the company law,when the operation of the company is endangered by one specificshareholder, the other shareholders can bow out of the company bytransferring his shares or asking the company to buyback his shares, andwhen the company falls into a deadlock, shareholders can sue to dissolutethe company. But the dissolution of the company means all things perishtogether, it is not the best result for the company and the shareholders who hope the company can continue, and it is also the shareholder’s hopelesschoice to give up the company.On this condition, what the company and the other shareholders needis to expulse the specific shareholder, so the system of the expulsion of theLLC emerged. This system has been developed for several decades in somecountries and regions represented by Germany. It is a pity of the lake of ourcompany law. So to build the system of the expulsion in our company lawthrough researching on it is the purpose of the article.This thesis is divided into three parts, the preface, text and conclusion.The preface summarizes the important position of the LLC in ournational economy and the status of the current laws and regulations, andanalyzes the necessity to build the system of the impulsion in our country.The text is divided into four chapters.The first chapter is about the essence of the LLC. The second chapteris the introduction of the system of the impulsion of the LLC. The thirdchapter compares the systems of the impulsion of different countries toprovide some reference for our country. The fourth chapter provides someadvises to build the system of impulsion in our country from substantiveand procedural aspects and finally reaches the conclusion that we shouldintroduce the system of impulsion into our country.