Study On Shareholders’ Qualification In A Limited Liability Company

In recent years, researches about shareholder’s qualifications of limited liabilitycompanies have been a hot topic in academic and practical areas. Especially theresearch on identification standards of shareholder’s qualifications in a limitedliability company enjoys an increasing popularity. The reason is that there are noclearly defined accreditation standards in legislation concerning shareholder’squalifications in limited liability companies, which directly lead to the controversy injudicial practice for its recognized standards in dealing with cases of shareholdereligibility identification. In academic circles, there are various theories about thestandards of shareholders qualifications in limited liability companies. However, thenotion about shareholders qualification standards should not be rigid, and should bemade specific identification criteria according to specific legal relationship. It can notbe generalized. In specific difficult problems about shareholder qualification: inidentifying the qualifications of shareholders who are in lack of civil capacity, itshould be analyzed from the perspective of original acquisition and followingacquisition. Identification of anonymous contributors as shareholders qualificationshould be made different judgments based on different legal relationships. In theprocess of share transfer, changes in shareholders qualification are marked bychanges in register information of shareholders. In handling "a second sell" situation,acquisition of shareholders qualifications by bona fide third party and by means ofbona fide acquisition should be admitted. Due to the lack of current legislativeprovisions about shareholder eligibility in limited liability companies, the writerthrow out the suggestions: firstly, to clearly define general shareholders accreditationstandards; second, to clearly identify the order of legal effect of shareholderqualification documents in various forms; third, to improve relevant systems ofshareholder register; fourth, to expand the expulsion right of shareholders eligibility.