Research On The Legal System Of The Inheritance Of Shareholder’s Rights In Limited Liability Company

As an important factor in modern society, stake is a very important commodity circulation and capital operation in today highly commercialized society. Chinese traditional enterprises are especially always family owned Limited Liability Company, in which folk capital accounts for a considerable proportion of Chinese economy. Heirs of individual shareholders after their death are widely concerned and cogitated. The death of a natural person shareholder could raise problems such as who should inherit equity, how to inherit, how to enable the company to the security transition but also won’t cause succession crisis, which are all widely considered. Equity of LLC contains both shareholder qualification and property content, which has the status of property, but not the personal right, could be transferred according to law, and also based on other legal facts. Because of equity of limited liability company is characterized by people combination, the other shareholders of this kind of company could limit shareholders to inherit the company equity heir.Generally accepted in legal circles, it is a must of the company to identify by the articles of association when shareholders limit the share equity inheritance. The articles of association of the company not prohibit or restrict the share equity inheritance, after the death of a natural person shareholder; the lawful successor party could gain the right to inherit the equity. According to China’s inheritance law, if heir objects are limited to property inheritance, the legitimate inheritance could start without asking others to agree in prior. Therefore the situation of inherited equity is named inheritance from seventy-sixth article of Company Law in China. However the essence could be regarded as transfer of shareholder status instead of inheritance, and also be used as "transfer law of succession" provisions. Due to a limitation on the number of shareholders of a limited liability company set in China’s Company Law, heir segmentation should be forbidden when inherit happened after ownership segmentation, or the inheritance could not conform to the Company Law’s provisions on the number of shareholders of a limited liability company limited.Based on the above problems, this paper takes equity inheritance of Limited Liability Company inherited as the research object, and based on the concepts of interpretation; try to start from the company’s inheritance theory, and analysis legislative status and problems of the share of equity inheritance of Chinese Limited Liability Company. Then, this paper intends to improve and modify the current legislation through study and analysis of foreign company inherit of equity and using legislative experience of them, aiming to thereby building a more objective and comprehensive equity inheritance system, and having a significance in the aspects of macro.Improve the share equity inheritance system work of LLC is not an easy progress, but also to resolve timely of the share equity inheritance disputes. It is to be pointed out that in the legislative process, timely modification and improvement legislative is definitely needed. Problems of practice need to gain judicial explanations and solutions as much as possible; and make equity inheritance to have maneuverability and tightness. On the other hand, shareholder participation in LLC leads to further improvement of the association articles of the company, contents of inheritance of shareholder’s rights needs to appear of the document format, operation system of the company of science need to be established, so as to promote the shareholders’ choices of the company, and to originally avoid the shareholders from the deadlock situation, and the result is to obtain a better and faster development.