The Restrictions On Voting Right Of Flaw Contribution Shareholder

As one of the most important market parts, the steady development of corporation influence the entire market condition.The capital which was contributed by shareholders is not only the foundation of corporation’s establishment and operation,but also is the financial guarantee of the outward liability.Therefore,flaw contribution could be harmful to the legal interest of corporation,shareholders and creditors.What’s more,flaw contribution happens everywhere frequently,and how to prevent and punish flaw contribution effectively has been a serious problem that should be solved desperately.Our law has set responsibilities to flaw contribution shareholder,but not that effectively.This is because our law does not restrict the voting rights of flaw contribution shareholders,which is the most important reason of flaw contribution’s happening. So I try to solve this problem by restricting the voting rights of flaw contribution shareholders.The voting right is one of the most important rights of shareholders,but the corporation law does not restrict the flaw contribution shareholders’.voting right explicitly,which leads to the conflict judgments and stimulate flaw contribution indirectly.We should make up this legal flaw as soon as possible.From the eye of legal basis,the unrestricted voting right of flaw contribution shareholders is against the principles of equality,rights consist with obligations and good faith.In addition,voting right is a strong power to control the company and make crucial decisions.It ranks highly in the shareholder’s right system.It will damage the corporation and other shareholders’ interest if flaw contribution shareholders have the equal voting right as other shareholders.From the perspective of legal system,flaw contribution violate the corporate contract theory seriously by acting against the articles of corporation and investor agreement.In order to restrict the voting right of flaw contribution shareholders,the first step should make up and modify the unclear provisions of the company law.Secondly,it is necessary to design related procedures to make sure the application of restricted voting right.The shareholders who have the possession of the company,the board of directors who was responsible for the operation of the company and the board of supervision can apply for the restricting procedure.Normally,the board of directors should accept the application and make decisions after reviewing the materials.But sometimes,the directors should submit the materials to the shareholder meeting to make the final decision if the case is complicated or the capital is huge.