Analysis On Legal Dispute Settlement Of The Limited Liability Company’s Dormant Shareholders

Company is the most important Business forms in the world. It involves many stakeholders, having complexed legal relationships, and playing a very important role on taking social responsibilities. And unstable company relationships are easy to cause large amounts of litigations and social issues. As the person cooperation of limited liability company,having more stringent requirements on stable relationships. Large numbers of dormant shareholders, have a significant impact on the safety and effective operation of LLC.Many reasons make dormant shareholders being, and how to define it hasn’t confirm yet. In this paper, dormant shareholders is one that invest but entrust it to others and isn’t registered in the shareholder roll or articles of incorporation or company registration or other registerring documents. People choose to be dormant for avoiding regulations or not. Now,have formed four major theories about identifying it, there are essence, forms, actual controller and difference. And author agree with forms. In addition, there are few laws about dormant shareholders’disputes, and only in the third Judicial Interpretation of the company law has some, and mainly involve:the validity of dormant investment, the validity of show shareholders dealing Shareholders’rights without warrant, defected investment. Furthermore, there are some Special norms maded by Higher People’s Court.However, existing legislations can’t resolve all the problems about dormant shareholders. So, this paper based on basic theories and norms, by commenting on existing theories and legislations, combining relevant principles and precaution for reducing disputes, expects that we can resolve this disputes better in different means.