Compulsory Equities Acquisition

Due to the natural characteristics of the company,there is no doubt that the company is at risk of deadlock.However,China's current company law fails to provide an ideal legal way to solve the company deadlock,and the judicial dissolution system becomes the first choice system for judges to decide.The author through to the corporate deadlock,including judicial dissolution system,other settlement mechanism research,found that China's existing company deadlock crack system still has many needs improvements,especially the judicial dissolution system used most widely.First of all,the application of the company's legislation to the judicial dissolution system is too broad and lacks practical operability,leading to the strong subjective will of the judge in the trial.Secondly,from the perspective of empirical observation of judicial dissolution system in the actual effect is not very desirable,especially in the court of first instance,in most cases,treatment of company dissolution is approved attitude,this conservative sparked the author's attitude towards the judicial dissolution system in our country,the design of the original thought.As a result,the author further study found that,during the trial judge too conservative attitude tend to cover up the real contradiction between shareholders,really resolve the company deadlock legal is not exclusive to dissolution of the company,but to maximize the interests of all parties,including shareholder protection.Therefore,break the company deadlock legal avenues to create core should be as unwilling to continue to maintain the shareholders of the relationship between provide an effective exit path,the advantage of compulsory share purchase system is apparent,one can make transfers equity shareholders with reasonable price to quit the company,on the other hand also can make the company get good continuation.First of all,in the case of the acquisition subject in the compulsory equity purchase system,the shareholder can either act as the purchaser or as the buyer.Under the current rules in our country "company law",the company whether can purchase the body as the problem is that the answer is no,in the long term capital maintains principle in our country there are mitigating space,to reopen the company as the main purchase this approach is not out of the question.Second equity of compulsory share purchase system reasonable issues,the court should first respect the parties on stockprices have reached the purpose,only when the two sides is difficult to form a unified idea,the court will be based on the two sides agreed to determine the reasonable price of the stock in the form of public bidding,shareholders objected to this way,has the corresponding qualification assessment agency designated by the court to the company to conduct a comprehensive evaluation,in order to determine the final purchase price.Finally,it is possible to use the compulsory equity acquisition system as a predisposing relief procedure for the judicial dissolution system to complete the connection with the judicial dissolution system.Crack the ultimate goal of corporate deadlock is to achieve the maximization of shareholders' interests protection,therefore to improve the judicial dissolution system while it is necessary to actively seek alternative remedies,and compulsory share purchase system is a more ideal way.