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On the Inheritance of Shareholder’s Rights in the Limited Liability Company

Author: WangLi
Tutor: LuoPeiXin
School: East China University of Political Science
Course: Legal
Keywords: Limited liability company Inheritance of shareholder’s rights System improvment
CLC: D922.291.91
Type: Master's thesis
Year: 2009
Downloads: 58
Quote: 0
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Abstract


May the heir inherit shareholder’s rights when a shareholder dies in a limited liability company? What rules should be abided by if the heir inherits deceased’s rights? To solve these problems, this article has made an intensive study on the nature of shareholder’s rights and the other countrys’legislation by using a comparative and law interpretation study of methods, etc. and confirmed our new Company Law legislation. At the same time, this article also made an analysis on some specific issues, formed an elementary academic and institutional system of the inheritance of shareholder’s rights in the limited liability company.It is suggested that the deceased shareholder’s rights in the limited liability company can be inherited by the heir. In terms of nature, shareholder’s rights does not mean the personal rights, and the personal combination of the limited liability company is insufficient to become the obstacle of inheritance of shareholder’s rights in the limited liability company. Granting the inheritance of shareholder’s rights and taking personal combination in the limited liability company into account, legislations of many countries permit the company to make special provisions by articles of association. Chinese Company Law also adopts this legislative pattern. However, due to the provisions of Article 76 is not detailed enough, it is not easy to operate in reality. So by analysis on some specific issue, this article provided the theoretical basis for the actual operation. To avoid the deadlock caused by the inheritance of shareholder’s rights, shareholders must pay attention to the formulation of the company’s association and make full use of its function of limitation and exclusion.The inheritance of shareholder’s rights in the limited liability company is a complex issue which both relates to the protection of rights of deceased shareholders and their heirs and the maintenance of personal combination in the limited liability company. The Company Law of P. R. C established the system of the inheritance of shareholder’s rights in a limited liability company, but many issues need to be further study. Relying on law and articles of association, the company and its shareholders should make arrangements for the inheritance of shareholder’s rights in advance, in order to achieve the maximization of the interests of all parties and promote the progress of economy.

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CLC: > Political, legal > Legal > Chinese law > Economic Law > Corporate law, company law
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