A Study of Equity Inheritance and Shareholder Qualification Issues Under Chinese Corporate Law
University of Malaya, Malaysia
Abstract
This study examines legal challenges in equity inheritance and shareholder qualification under Chinese company law. As limited liability companies dominate and founders age, unresolved succession issues emerge. The research clarifies the conceptual distinction between equity (a blend of property and identity rights) and shareholder qualification (a mechanism for rights execution). Using normative legal analysis, comparative law, and case studies from China, the UK, US, Germany, and France, the study identifies systemic flaws—especially judicial inconsistencies and vague company articles. It proposes a dual-track inheritance system: internal effectiveness at death and external effectiveness upon registration. This balances inheritance protection with transactional security. The paper further advocates shifting from equity transfer theory to equity succession theory, emphasizing that inheritance is a legal fact triggered by death, not a consensual act. Standardizing company articles is also urged to better accommodate inheritance, reduce disputes, and offer procedural clarity. The findings advance theoretical discourse and offer practical reforms for courts, businesses, and families.
Keywords:
Equity Inheritance; Shareholder Qualification; Corporate GovernanceData Availability Statement
This study does not involve personal or confidential data. All legal sources, statutes, and case references used are publicly accessible through official databases and repositories.
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