Comparative Analysis on the Legal System of Shareholding Between China and Foreign Countries

Abstract

There is a gap in the domestic legal system regarding the regulation of shareholding in lieu of ownership. Compared with the earlier common law and civil law countries, it is not perfect. In practice, problems arising from shareholding are frequent, and the imperfection of the law has led to many different judgments in the same case. By combing through the current situation of shareholding in China, it is found that the most prominent issues in practice are the determination of the validity of shareholding agreements and the criteria for determining the eligibility of shareholders. This article compares the current systems in common law countries and civil law countries, and concludes that the incorporation of the trust model into the regulation of shareholding, combined with the commercial appearance doctrine to protect bona fide third parties is more in line with the domestic situation, and has certain feasibility.