Legal Issues Regarding The Equity Segmentation Owned By The Couple Of Limited Liability Company

As the practice of the reform and opening policy and the economy, in resent years, the divorce rate of many big cities in China had been continuously growing up. According to a survey, which demonstrates that in so many first-line city in China, above 50% divorce cases directly or indirectly in relation to the share split. This issue had been discussed in many laws and regulations, such as the Corporate Law, Marriage Law, Partnership Law, Securities Law and so on, which will not only be stipulated in one sole rules or regulations. At the same time, the segmentation of the community of the equity of the couple will not only affect the couple themselves, but also leave impact on the relevant third party. Therefore, the panel has to consider much more while dealing this kind of case, which indeed upgrade the difficulty of solving the problem. So far, most of the countries in the world have not issue any laws or regulations specially to face the segmentation of the community of the equity of the couple. Only a few of the country, such as France, had already made special litigation step regarding this issue. As for China, we still do not have any special regulation regarding this issue in our Corporate Law or the Marriage Law. We encounter such cases, the legal basis the court hold is usually coming from the Interpretation of the Supreme People’s Court about Several Problems Concerning the Application of the Marriage Law of the People’s Republic of China (Ⅱ). In fact, the regulation in the interpretation of the Supreme People’s Court about Several Problems Concerning the Application of the Marriage Law of the People’s Republic of China (Ⅱ) is sourced from the relevant regulation regarding the transfer of the share or equity in the Corporate Law. However, the Interpretation of the Supreme People’s Court about Several Problems Concerning the Application of the Marriage Law of the People’s Republic of China (Ⅱ) was issued in 2003 but the Corporate Law was updated in 2005. In this way, there will be so many regulation dilemma in the practice. Therefore we believe that it is necessary to discuss this issue. There are five parts in this paper discussing the segmentation of the community of the equity of the couple, pointing the shortage of the current method and offering the suggestions to improve. In the first part, we will focus on the laws and regulations regarding to the segmentation of the community of the equity of the couple. In the second part, we will focus on the estimation of the community of the equity of the couple. In the third part, we will introduce the current situation of the litigation and practice. In the last two parts, we will give the suggestion to improve the segmentation of the community of the equity of the couple.