Research On Acquisition Of Equity Of Limited Company In Good Faith

With the basic idea to find the best balance between the property interests of the real right holder and the reliance interest of the buyer in good faith,acquisition in good faith is firstly used in the field of property rights,that is,if the interests of buyer in good faith are protected in first priority,then the interests of the real right holder will be damaged inevitably.However,this is a system choice to make the market trade run in order.The legislative purpose of this system is consistent with that of stabilizing the trade order and improving the commercial efficiency of the company law,which is the fundamental reason that the legislators use acquisition in good faith in shares trade.China has carried out market economy for many years.In order to accelerate the speed of developing market economy with high quality,our great nation has formulated many policies to benefit the society,therefore,many companies are established under such circumstances to enjoy the benefits from the policies.Shares trade has become an important part in the field of market trade,but the increased disputes from shares trade also put out new requirements on how to apply the company law into share trade market better.Compared with the joint stock companies,the shares of limited liability companies are not traded in the market,but keep property trade run in order is still the goal of developing our market economy better and healthy.Meanwhile,if the conflicts between the market trade order and the harmonious integrity of the limited liability company are not solved properly,it will surely cause the operation base lose and will also bring harmful hurts to the interests of the company,shareholders and right holders.Therefore,mores space and opportunities shall be allowed for the limited liability companies to apply acquisition in good faith in shares trade.Aiming at the current situation of shares trade market,this paper,by referring to the relevant references and files both home and abroad,analyses the necessity of acquisition in good faith applied in the field of shares trade,and summarizes controversies and problems existed in the Provisions of the Supreme Court of the PRC on How to Better Apply the Company Law of the PRC(III)(revised in 2020).Finding out typical cases,this paper analyses these cases to clarify the focus of judicial disputes,that is to say,different courts give different judgments for the same cases and the application scope is even more wider than its real purpose.For the above problems,this paper brings forward solutions and makes clear the boundaries of acquisition in good faith on shares trade,and then puts forward suggestion for the legislation and justice application to provide effective methods to save rights for the real right holders.Therefore,along with the increasing prosperity of China’s market economy,the types of equity trade have become increasingly complex,but many realistic problems also exist.By confirming the acquisition in good faith system applied to equity trade at the same time,we should be aware that this system should not be limited to solve the two circumstances of the equity sold by nominal shareholders and the same stock sold to two buyers,but also the cases such as fake signature or altered signature,so that the system could better resolve disputes.At the same time,the applicable circumstances and relief mechanism should be clearly excluded in order to better play the role of this system.Acquisition in good faith on shares trade has been applied in practice,the problems have also been constantly exposed.Only tested in the theory and practice constantly,the acquisition in good faith on shares trade suitable for China’s commercial environment could be explored.