Research on the Shareholder Delisting System of Limited Liability Companies

Abstract

Limited liability companies have become an indispensable part of the market economy due to their advantages in combining talent and capital, while continuously attracting more investors to participate. However, there are also some shareholders who intentionally fail to comply with the agreement and are unwilling to fulfill their capital contribution responsibilities. In this case, the shareholder delisting system has emerged. This system refers to the mandatory cancellation of the shareholder status of expelled shareholders in accordance with the company's articles of association or resolutions of the shareholders' meeting, in order to resolve internal disputes within the company, avoid escalating conflicts among shareholders, and ensure the normal operation of the company. At present, the shareholder delisting system in China still faces problems such as incomplete scope of reasons, lack of operability in procedures, and inability to protect the rights of relevant parties after shareholder delisting. Therefore, we need to improve the reasons and implementation procedures of the shareholder delisting system, as well as the relief measures for relevant parties after shareholder delisting.