{"id":12707,"date":"2026-10-15T08:32:46","date_gmt":"2026-10-15T00:32:46","guid":{"rendered":"https:\/\/fdlaw.com.tw\/blog\/shareholder-deadlock-exit-buyout\/"},"modified":"2026-10-15T08:41:07","modified_gmt":"2026-10-15T00:41:07","slug":"shareholder-deadlock-exit-buyout","status":"publish","type":"post","link":"https:\/\/fdlaw.com.tw\/en\/blog\/shareholder-deadlock-exit-buyout\/","title":{"rendered":"What if 50 shareholders can&#039;t reach an agreement? The options are: equity transfer, buyout, company takeover, and court dissolution."},"content":{"rendered":"<style>.fd-shareholder-exit-article {max-width:1140px;margin:0 auto;color:#26364a;font-size:18px;line-height:1.9;overflow-wrap:anywhere;}\n.fd-shareholder-exit-article * {box-sizing:border-box;}\n.fd-shareholder-exit-article p {margin:0 0 20px;}\n.fd-shareholder-exit-article > p,.fd-shareholder-exit-article .exit-section > p,.fd-shareholder-exit-article .exit-section > h2,.fd-shareholder-exit-article .exit-section > h3 {max-width:860px;margin-left:auto;margin-right:auto;}\n.fd-shareholder-exit-article h2 {font-size:29px;line-height:1.5;color:#142f50;margin-top:48px;margin-bottom:24px;}\n.fd-shareholder-exit-article h3 {font-size:23px;line-height:1.6;color:#142f50;margin-top:28px;margin-bottom:16px;}\n.fd-shareholder-exit-article h4 {font-size:19px;line-height:1.5;color:#142f50;margin:8px 0;}\n.fd-shareholder-exit-article a 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{grid-template-columns:1fr;}\n.fd-shareholder-exit-article .exit-four,.fd-shareholder-exit-article .exit-five {grid-template-columns:repeat(2,minmax(0,1fr));gap:12px;}\n.fd-shareholder-exit-article .exit-answer,.fd-shareholder-exit-article .exit-cta,.fd-shareholder-exit-article .exit-module,.fd-shareholder-exit-article .exit-note,.fd-shareholder-exit-article .exit-company > section {padding:22px 20px;}\n.fd-shareholder-exit-article .exit-answer h2,.fd-shareholder-exit-article .exit-cta h2 {font-size:24px;}\n.fd-shareholder-exit-article .exit-actions {align-items:stretch;flex-direction:column;}\n.fd-shareholder-exit-article .exit-button {text-align:center;}\n}\n\n.fd-shareholder-exit-article .exit-three {display:grid;grid-template-columns:repeat(3,minmax(0,1fr));gap:22px;margin:30px 0;}\n.fd-shareholder-exit-article .exit-three > section {background:#edf3f8;border-top:3px solid #b59b63;padding:25px;}\n.fd-shareholder-exit-article .exit-three h3 {margin-top:0;}\n.fd-shareholder-exit-article .exit-six {display:grid;grid-template-columns:repeat(3,minmax(0,1fr));gap:16px;margin:24px 0;}\n.fd-shareholder-exit-article .exit-six > div {padding:20px;background:white;border-bottom:2px solid #b59b63;}\n.fd-shareholder-exit-article .exit-six span {display:block;color:#927943;font-size:25px;}\n.fd-shareholder-exit-article .exit-warning {padding:28px 32px;background:#f7f4ec;border-left:4px solid #b59b63;margin:32px 0;}\n.fd-shareholder-exit-article .exit-warning > h3 {margin-top:0;}\n.fd-shareholder-exit-article .exit-errors {display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:15px;}\n.fd-shareholder-exit-article .exit-errors p {padding:18px;background:white;border:1px solid #ddd6c5;margin:0;}\n.fd-shareholder-exit-article .exit-checklist {display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:0 32px;background:#f1f5f8;padding:24px 30px;}\n.fd-shareholder-exit-article .exit-checklist > section {padding:5px 0 20px;border-bottom:1px solid #ccd8e2;}\n.fd-shareholder-exit-article .exit-checklist h3 {margin-bottom:12px;}\n@media(max-width:767px){\n.fd-shareholder-exit-article .exit-three,.fd-shareholder-exit-article .exit-six,.fd-shareholder-exit-article .exit-errors,.fd-shareholder-exit-article .exit-checklist {grid-template-columns:1fr;}\n.fd-shareholder-exit-article .exit-warning {padding:22px 20px;}\n}\n<\/style><div class=\"fd-shareholder-exit-article\"><aside class=\"exit-answer\"><h2>In a 50-50 shareholder deadlock, don&#039;t immediately equate &quot;exiting&quot; with the company refunding your money.<\/h2><ol><li>First, confirm whether the company is a limited liability company, a general joint-stock company, or a closed joint-stock company.<\/li><li>Confirm the exact shareholding and voting rights of each party, as well as whether the board seats are also equally divided.<\/li><li>Check the articles of association and shareholder agreement to see if there are any mechanisms for equity transfer, preemptive purchase, sale and purchase rights, valuation, or exit.<\/li><li>The capital invested by shareholders in a company is not a loan in principle, and they cannot demand that the company return their original investment simply because they do not want to continue operating the company.<\/li><li>A truly viable exit strategy usually involves a buyout by other shareholders, a transfer to a third party, an exit by contract, or, if legal requirements are met, a corporate law procedure.<\/li><li>A company&#039;s ability to buy back its own shares is restricted by company law, and not all shareholders have the right to &quot;demand a company to repurchase&quot; their shares.<\/li><\/ol><\/aside>\n<p>Two friends started a business together, each contributing 50%.<\/p>\n<p>The beginning is the fairest.<\/p>\n<p>However, when a real dispute arises within the company, a 50-50 equity structure can become one of the most difficult to handle.<\/p>\n<p>Common scenarios include: the two shareholders have completely different views on the company&#039;s direction; neither can obtain a majority of support; each has their own people on the board of directors; bank accounts or seals require the cooperation of both parties; one party wants to continue operating while the other wants to leave; both parties feel that they should stay in the company; but there is no consensus on the share price.<\/p>\n<p>Ultimately, the company may face the following problems: shareholders&#039; meetings cannot be held; the board of directors cannot make decisions; important contracts are stalled; employees do not know whose advice to follow; and the company gradually loses assets and customers.<\/p>\n<p>This is a typical example: <strong>Shareholder deadlock.<\/strong><\/p>\n<p>However, when truly dealing with shareholder deadlock, it&#039;s not enough to simply ask: &quot;Who is right and who is wrong?&quot;<\/p>\n<p>Instead, we should ask: <strong>Should the company continue?<\/strong><\/p>\n<p><strong>Who wants to stay?<\/strong><\/p>\n<p><strong>Who wants to quit?<\/strong><\/p>\n<p><strong>How is equity transferred?<\/strong><\/p>\n<p><strong>How is the price calculated?<\/strong><\/p>\n<p>as well as: <strong>If they can&#039;t reach an agreement at all, what legal recourse is there?<\/strong><\/p>\n<p>While people often use the colloquial term &quot;breaking up a partnership,&quot; the relationship between company shareholders is not a civil law partnership; the withdrawal of company shareholders should still be handled in accordance with the Company Law, articles of association, shareholder agreements, and equity transfer regulations.<\/p>\n<p><a href=\"https:\/\/fdlaw.com.tw\/en\/shareholder-dispute-lawyer\/\">Lawyers specializing in shareholder disputes and equity controversies<\/a>We will first distinguish between exit, corporate governance, and accountability;<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholder-dispute-company-deadlock\/\">Complete legal handling of shareholder disputes and corporate deadlock<\/a>It is also necessary to compare the shareholding and control structure.<\/p>\n<section class=\"exit-section\" id=\"exit-section-1\"><h2>1. Does the fact that each party holds 50% of the shares (TP3T) mean that neither party can do anything about the other?<\/h2>\n<p>uncertain.<\/p>\n<p>A 50-50 split simply refers to the equity ratio.<\/p>\n<p>The true control structure of a company also depends on: company type; articles of association; board seats; chairman of the board; voting rights; preferred shares; shareholders&#039; agreement; banking authority; seals; and the actual management team.<\/p>\n<p>For example, if each party holds 50% of the shares (%), but one party controls a majority of the board seats, the actual governance situation may not be completely symmetrical.<\/p>\n<p>Conversely: if the equity is 50\/50; the board of directors is also 1\/1; and major decisions require the consent of both parties, it is easy to create a real business deadlock.<\/p>\n<p>Therefore, the first step is not just to look at: 50% vs 50%.<\/p>\n<p>Instead, it establishes: <strong>Equity structure diagram + governance diagram.<\/strong><\/p>\n<aside class=\"exit-cta\"><h2>The two shareholders have completely broken off negotiations, but the company is still operating?<\/h2><p>If both parties hold nearly equal or 50% each, and disputes have already arisen regarding the board of directors, shareholders&#039; meetings, company seals, bank access, or equity withdrawal, it is advisable to first compile information on the company type, articles of association, shareholder agreement, equity ratio, board seats, financial data, and the actual plans that both parties wish to keep or withdraw. Then, it is necessary to determine whether to first discuss a buyout, audit, asset preservation, or initiate corporate law proceedings.<\/p><div class=\"exit-actions\"><a class=\"exit-button\" href=\"https:\/\/line.me\/ti\/p\/@723pifhz\" target=\"_blank\" rel=\"noopener\">LINE inquires about shareholder deadlock\/equity exit<\/a><a class=\"exit-button secondary\" href=\"tel:0277093611\">Call directly for company equity cases.<\/a><\/div><p><a href=\"https:\/\/fdlaw.com.tw\/en\/shareholder-dispute-lawyer\/\">Legal services for shareholder disputes and equity controversies<\/a><\/p><\/aside>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-2\"><h2>Second, the first thing to determine in a 50-50 stalemate is: what is really causing the problem?<\/h2>\n<p>Different deadlocks require completely different legal tools.<\/p>\n<p>For example:<\/p><div class=\"exit-types exit-procedures\"><section><h3>Shareholder deadlock<\/h3><p>No one could produce the desired voting result.<\/p><\/section><section><h3>Board deadlock<\/h3><p>With equal seats on the board, important resolutions repeatedly fail to pass.<\/p><\/section><section><h3>Deadlock in management<\/h3><p>The two sides are vying for control of the company seal, bank, employees, or system.<\/p><\/section><section><h3>Financial deadlock<\/h3><p>One party is unwilling to invest any more funds, while the other party believes that the company still needs to increase its capital.<\/p><\/section><section><h3>Breaking the deadlock<\/h3><p>Both sides agree that someone should leave, but: Who should leave?<\/p>\n<p>Who will buy it?<\/p>\n<p>How much?<\/p>\n<p>They couldn&#039;t reach an agreement at all.<\/p>\n<p>First, you need to identify which type it is before you can choose the right tool.<\/p><\/section><\/div>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-3\"><h2>3. If I say, &quot;I don&#039;t want to continue working here,&quot; can I directly ask the company to return the money I initially invested?<\/h2>\n<p>This is not usually the correct way to understand it.<\/p>\n<p>The investments made by shareholders in a company\u2014capital contributions, share payments, and capital\u2014are different legal relationships from loans made to the company.<\/p>\n<p>If the initial investment was a genuine acquisition of equity, the company is not obligated to return the original investment to the shareholder simply because the shareholder now wants to leave.<\/p>\n<p>Therefore: Investing 5 million yuan initially does not necessarily mean that you can demand a refund of 5 million yuan from the company when you withdraw from the investment.<\/p>\n<p>The company may: have grown; have incurred losses; have substantial assets; or be heavily indebted.<\/p>\n<p>The current value of the equity and the initial investment are two different questions.<\/p>\n<aside class=\"exit-note\"><h3>The real issue in shareholder deadlock is usually not who has the greater legal power, but rather how to safely separate the companies.<\/h3><p>Disputes involving 50-for-50 equity stakes often involve corporate governance, equity transfer, accounting, company valuation, personal guarantees, and exit negotiations. Addressing only one of these issues, even after the equity transfer is completed, may leave behind subsequent problems such as bank guarantees, director liabilities, shareholder loans, or company assets.<\/p><p>When handling shareholder and equity disputes, Fidelity Law Firm first restructures the company&#039;s equity, governance, and financial structure before determining whether to pursue equity buyout, third-party transfer, shareholder agreement, corporate governance, preservation measures, or court proceedings.<\/p><p><a href=\"https:\/\/fdlaw.com.tw\/en\/shareholder-dispute-lawyer\/\">Lawyers specializing in shareholder disputes and equity controversies<\/a>The handling method will be arranged according to the company&#039;s rights, value, and exit objectives;<a href=\"https:\/\/fdlaw.com.tw\/en\/team\/charles-lee\/\">Lawyer Li Yusheng<\/a>Assist in integrating corporate law, financial and transaction risks.<\/p><\/aside>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-4\"><h2>Fourth, the most common way for shareholders to exit is actually through &quot;equity transfer&quot;.<\/h2>\n<p>In practice, the most direct way to exit is usually: Shareholder A sells their shares to: another shareholder; other existing shareholders; or a third party.<\/p>\n<p>However, whether a transfer is possible must be confirmed first: <strong>Company type.<\/strong><\/p>\n<p>The rules for limited liability companies and joint-stock companies are not the same.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-5\"><h2>V. If a limited liability company wants to withdraw, it must first review...<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 111 of the Company Law<\/a><\/h2>\n<p>Limited liability companies have a strong personal element.<\/p>\n<p>according to<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 111 of the Company Law<\/a>In principle, for a shareholder to transfer all or part of their investment to another party, the following conditions must be met: the consent of more than half of the voting rights of the other shareholders.<\/p>\n<p>If the person transferring the shares is a director, the threshold is even higher: more than two-thirds of the voting rights of the other shareholders are required to agree.<\/p>\n<p>However, this does not mean that other shareholders can lock those who want to leave the company indefinitely simply by saying &quot;I disagree&quot;.<\/p>\n<p>because<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 111<\/a>It also stipulates that shareholders who disagree with the transfer have the right of first refusal; if those who disagree are unwilling to accept the transfer under the conditions, the law will have corresponding consequences.<\/p>\n<p>Therefore, when a shareholder of a limited liability company withdraws, the most important question is not simply: &quot;Does the other party agree?&quot;<\/p>\n<p>The following information should also be provided: the transferee; the price; the payment method; the transfer conditions; and whether other shareholders have acquired the shares.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-6\"><h2>6. What if one of the two parties, each holding 50% in a limited liability company, wants to sell their shares to a third party?<\/h2>\n<p>This is a very typical problem.<\/p>\n<p>For example: Product A: 50%; Product B: 50%.<\/p>\n<p>A no longer wants to operate the business together and has found a third party willing to take over his investment for 10 million yuan.<\/p>\n<p>At this point, we shouldn&#039;t just stop at: &quot;Party B disagrees, so the sale cannot be made.&quot;<\/p>\n<p>Should be based on<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 111 of the Company Law<\/a>The specific transaction terms and conditions will be further confirmed, including: transfer notice; consent from other shareholders; preemptive rights; price; payment terms; amendment to the articles of association; and company registration.<\/p>\n<p>A true exit strategy must take legal procedures and transaction terms into account.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-7\"><h2>VII. The rules for shareholder exit in joint-stock companies are different.<\/h2>\n<p>In principle, joint-stock companies adopt the following policy: shares can be freely transferred.<\/p>\n<p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 163 of the Company Law<\/a>The regulations stipulate that, unless otherwise provided by the Company Law, a company may not prohibit or restrict the transfer of shares through its articles of association.<\/p>\n<p>Therefore, the problem with ordinary joint-stock companies is often not: &quot;The law does not allow them to be sold.&quot;<\/p>\n<p>Instead: <strong>Will anyone actually be willing to buy it?<\/strong><\/p>\n<p>Since non-listed companies lack a public market, even if they are legally transferable, they may still encounter problems such as: difficulty finding a buyer; lack of equity liquidity; the buyer&#039;s inability to obtain company information; disagreement on price; discounted control; and disputes over the value of minority shares.<\/p>\n<p>Therefore, &quot;shares can be transferred&quot; does not mean that &quot;shareholders can definitely withdraw.&quot;<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-8\"><h2>8. For closed-end joint-stock companies, their articles of association need to be reviewed separately.<\/h2>\n<p>A closed joint-stock company is essentially a privately held company whose share transfers are restricted.<\/p>\n<p>Company law requires that restrictions on the transfer of relevant shares be stated in the articles of association.<\/p>\n<p>Therefore, if the company is a closed joint-stock company, the general principle of &quot;shares being freely transferable&quot; cannot be directly applied to general joint-stock companies, and the analysis ends here.<\/p>\n<p>First, you must see: what restrictions are actually imposed by the company&#039;s articles of association.<\/p>\n<p>For example, it may involve: consent from other shareholders; preemptive rights; specific eligibility; specific transfer conditions.<\/p>\n<p>Therefore, the first important document in every equity exit case is usually: <strong>Company Articles of Association.<\/strong><\/p>\n<div class=\"exit-three\"><section><h3>Limited Liability Company<\/h3><p><strong><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 111 of the Company Law<\/a><\/strong><\/p><p>The transfer of capital contributions requires the consent of other shareholders in accordance with the law. Shareholders who do not agree have the right of first refusal, and the threshold for obtaining the consent of directors to transfer their capital contributions is relatively high.<\/p><p>Common exit strategies include: transfer by other shareholders, transfer by a third party, and buyout by agreement.<\/p><\/section><section><h3>General Joint Stock Company<\/h3><p><strong><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 163 of the Company Law<\/a><\/strong><\/p><p>In principle, shares can be transferred, but unlisted equity may lack buyers and market prices.<\/p><p>The company&#039;s acquisition of shares is subject to restrictions under Article 167 and other regulations.<\/p><\/section><section><h3>Closed-loop joint-stock company<\/h3><p><strong>Core: Articles of Association<\/strong><\/p><p>Restrictions on share transfer should be stated in the articles of association. Before withdrawing, check the transfer restrictions, other shareholder rights, and the shareholders&#039; agreement.<\/p><p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 356-1 of the Company Law<\/a>and<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 356-5 of the Company Law<\/a>Establish regulations to restrict the transfer of articles of association of closed-end companies.<\/p><\/section><\/div>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-9\"><h2>9. It is very important if the shareholders&#039; agreement includes an exit clause.<\/h2>\n<p>A well-established shareholder agreement may stipulate in advance: preemptive rights; tag-along rights; drag-along rights; buy-sell options; exit in case of material default; equity handling upon founder&#039;s departure; valuation method; payment method; and deadlock resolution procedures.<\/p>\n<p>If such clauses already exist, in the event of a shareholder dispute, the following should be confirmed first: whether the clauses are valid; whether the triggering conditions have been met; who can exercise them; how to give notice; and how the price is determined.<\/p>\n<p>This is usually much easier than redesigning the exit mechanism after a dispute arises.<\/p>\n<p>Further reading: <a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholders-agreement\/\">Shareholder Agreement, Voting Rights and Exit Mechanism<\/a>.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-10\"><h2>10. Even without a shareholders&#039; agreement, it is still possible to negotiate a &quot;buyout by one party&quot; arrangement.<\/h2>\n<p>Can.<\/p>\n<p>The real solution to many shareholder deadlocks is not a court ruling on who remains a shareholder, but rather: <strong>One side stays, the other leaves.<\/strong><\/p>\n<p>For example: A buys B; or: B buys A.<\/p>\n<p>At the heart of this Buyout Negotiation, there are usually five questions: 1. Who has the ability to continue running the company?<\/p>\n<p>2. Who really wants to stay?<\/p>\n<p>3. What is the company&#039;s current value?<\/p>\n<p>4. What positions and responsibilities will the departing person be relieved of?<\/p>\n<p>5. Should the price be paid in one lump sum or in installments?<\/p>\n<p>Simply talking about &quot;how much is one share&quot; is usually not enough.<\/p>\n<aside class=\"exit-module\"><h3>There is no single standard answer to shareholder exit.<\/h3><div class=\"exit-six\"><div><span>01<\/span>Other shareholders bought out<\/div><div><span>02<\/span>Third party acquires<\/div><div><span>03<\/span>Exiting in accordance with the shareholders&#039; agreement<\/div><div><span>04<\/span>Check the accounts\/valuation first, then discuss.<\/div><div><span>05<\/span>Corporate governance or preservation procedures<\/div><div><span>06<\/span>The court is being considered for dissolution in the face of a severe deadlock.<\/div><\/div><\/aside>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-11\"><h2>11. How is the exit price calculated for shareholders?<\/h2>\n<p>Company law does not have a fixed formula that applies to the exit of all shareholders.<\/p>\n<p>Equity valuation may need to consider: company net assets; cash; real estate; equipment; liabilities; accounts receivable; future profitability; customers; brand; technology; important contracts; litigation risks; taxes; related party transactions.<\/p>\n<p>In some cases, further consideration is needed: Is this a controlling stake?<\/p>\n<p>Or a minority stake?<\/p>\n<p>Is the company highly dependent on a single founder?<\/p>\n<p>Therefore, &quot;how much was invested initially&quot; is usually not the only valuation benchmark.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-12\"><h2>12. Before making an estimate, it may be necessary to check the accounts first.<\/h2>\n<p>The two shareholders have a large price difference, and often it&#039;s not simply a matter of haggling over the price.<\/p>\n<p>Rather, the two parties used fundamentally different information regarding the company&#039;s true value.<\/p>\n<p>For example, one party argues that the company only has 1 million yuan in its accounts.<\/p>\n<p>The other party argues that the company also has a large amount of: accounts receivable; inventory; intellectual property; related corporate interests; and unrecorded revenue.<\/p>\n<p>At this point, directly asking, &quot;How much are you willing to pay for my shares?&quot; is unlikely to yield any results.<\/p>\n<p>First, verify the following: financial statements; accounting books; bank flows; company assets; liabilities; major contracts; and related-party transactions.<\/p>\n<p>If the company fails to provide the information, further assessments can be made regarding shareholder audits or inspector procedures.<\/p>\n<p>Further reading: Shareholders&#039; requests to inspect accounts, company&#039;s refusal to provide accounting books, and requests for inspectors can be found here.<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholder-account-inspection-inspector\/\">Shareholders&#039; audit, company&#039;s refusal to accept accounting records and inspectors<\/a>.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-13\"><h2>13. Isn&#039;t &quot;having the company buy back my shares&quot; the simplest solution?<\/h2>\n<p>It looks the simplest, but it&#039;s actually the easiest to write wrong in law.<\/p>\n<p>In particular, joint-stock companies are restricted by company law from buying back their own shares.<\/p>\n<p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 167 of the Company Law<\/a>In principle, companies are prohibited from arbitrarily reclaiming or buying back their own shares, except in cases where exceptions are provided by law.<\/p>\n<p>Therefore, it is not appropriate to simply state in the shareholder agreement or negotiations: &quot;The company must repurchase the shares whenever a shareholder wants to exit.&quot;<\/p>\n<p>Then they assumed that it could be executed directly.<\/p>\n<p>Whether the company itself can acquire the property requires further verification regarding: company type; legal grounds; procedures; financial restrictions; and capital maintenance regulations.<\/p>\n<p>In practice, the real buyer in a &quot;buyout&quot; transaction is often: <strong>Another shareholder or third party,<\/strong> Rather than the company itself.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-14\"><h2>fourteen,<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 167 of the Company Law<\/a>It&#039;s not an &quot;exit button&quot; for ordinary shareholders.<\/h2>\n<p>Joint-stock companies are prohibited from arbitrarily buying back their own shares in order to prevent the arbitrary flow of company capital back to shareholders. This affects: company capital; creditors; and other shareholders.<\/p>\n<p>Although the Company Law provides for several exceptions that allow a company to buy back its own shares, each exception has the following: specific reasons; procedures; conditions; and purposes.<\/p>\n<p>For example<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 167 of 1<\/a>The company&#039;s share buyback system has its specific legal purpose and is subject to quantity and amount restrictions. It cannot be interpreted as meaning that every shareholder can ask the company to buy them out using this clause whenever they want to exit.<\/p>\n<aside class=\"exit-warning\"><h3>The company&#039;s share buyback is not a mechanism that ordinary shareholders can demand to exit at any time.<\/h3><p>A joint-stock company buying its own shares is subject to<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 167 of the Company Law<\/a>In addition to other relevant regulations and restrictions, if a shareholder agreement or settlement stipulates that the company itself will buy back shares, the company type, legal basis, and procedures must first be confirmed. &quot;Company buyback&quot; should not be treated as an ordinary right that all shareholders can assert at any time.<\/p><h4>Common errors<\/h4><div class=\"exit-errors\"><p>&quot;I invested 5 million, so the company should return 5 million to me.&quot;<\/p><p>&quot;If a shareholder agreement includes a clause about company buybacks, it is guaranteed to be valid.&quot;<\/p><p>&quot;If the company has money, it can directly buy its own shares.&quot;<\/p><p>&quot;If the other shareholder disagrees, I can never withdraw.&quot;<\/p><\/div><\/aside>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-15\"><h2>15. So, can a shareholder agreement stipulate &quot;company buyback&quot;?<\/h2>\n<p>An exit plan can be designed, but the wording must be very careful.<\/p>\n<p>If the agreement stipulates that another shareholder, founder, specific investor, or a third party bears the obligation to purchase, this is one scenario.<\/p>\n<p>If the requirement is that &quot;the company itself must buy back the shares,&quot; then the restrictions under corporate law on a company buying back its own shares must be checked separately.<\/p>\n<p>We cannot ignore mandatory legal provisions simply because the contract states that &quot;the company shall repurchase&quot;.<\/p>\n<p>Therefore, the exit clause in the shareholders&#039; agreement should clearly state the buyer.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-16\"><h2>16. What if both parties want to stay?<\/h2>\n<p>This is also a typical 50-50 stalemate.<\/p>\n<p>A said, &quot;I built this company from scratch, so I&#039;ll buy yours.&quot;<\/p>\n<p>B also said, &quot;All the customers are mine, I&#039;ll buy from you.&quot;<\/p>\n<p>At this point, you can consider designing a negotiation mechanism: mutual quotation; third-party valuation; bidding; phased payments; exchanging different assets; business segmentation.<\/p>\n<p>However, the actual mechanism adopted depends on: whether the company can be divided; whether the brand can be dismantled; whether customers can be transferred; who owns the intellectual property; how employees will be arranged; and the lease agreement and bank financing.<\/p>\n<p>You can&#039;t just use an abstract concept like &quot;half for each person&quot; to handle all company assets.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-17\"><h2>17. Besides the price, what other matters need to be addressed during negotiations?<\/h2>\n<p>At least the following should also be addressed: Director positions; Changes in responsible persons; Bank authorization; Company seal; Online banking; Company credit cards; Guarantee liabilities; Shareholder loans; Retained earnings; Litigation; Accounting books; Customer information; Intellectual property; Non-competition agreements; Confidentiality; Employees; Past liabilities.<\/p>\n<p>If only the following agreement is signed: &quot;Party A purchases shares of Party B for 5 million yuan.&quot;<\/p>\n<p>The remaining issues remain unresolved; although the shareholders have withdrawn, the dispute may not be over.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-18\"><h2>18. Before leaving the company, make sure to confirm the &quot;Personal Guarantee&quot;.<\/h2>\n<p>Many shareholders are also: directors; responsible persons; guarantors of bank loans; joint guarantors of leases; and guarantors of suppliers.<\/p>\n<p>Even if the equity has been transferred, the individual may still be liable for debt risks if the original personal guarantee has not been released.<\/p>\n<p>Therefore, the exit agreement should confirm: which guarantees need to be released; whether the bank agrees to replace the guarantor; and when the original shareholders will no longer be liable.<\/p>\n<p><strong>Withdrawal of equity does not mean that personal guarantees automatically disappear.<\/strong><\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-19\"><h2>19. In a 50-50 deadlock, can one side secretly increase its investment to dilute the other side&#039;s capital?<\/h2>\n<p>Whether a capital increase is permitted depends on: company type; board of directors\/shareholders&#039; authority; articles of association; new share issuance procedures; shareholder subscription rights; and resolution procedures.<\/p>\n<p>Capital increases should not be simply regarded as a weapon to resolve shareholder conflicts.<\/p>\n<p>If there are disputes regarding the purpose, procedures, or authority of the capital increase, it may further trigger: board resolutions; shareholders&#039; meetings; new share issuance; and litigation related to management rights.<\/p>\n<p>If a company is preparing to take significant actions that could change control, it should assess as early as possible whether preservation procedures are necessary.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-20\"><h2>20. If one party is transferring company assets, is it still appropriate to slowly discuss exiting the business?<\/h2>\n<p>uncertain.<\/p>\n<p>If the following have occurred: a major asset sale; transactions involving unusual related parties; outflow of company funds; transfer of customers, trade secrets, or equipment; preparation for a change of directors; an imminent transfer of shares; or a potential irreversible change in company control, then the case is no longer simply about &quot;disagreements over share price.&quot;<\/p>\n<p>The following issues may need to be addressed first: preservation of company assets; shareholder rights; validity of the board of directors\/shareholders&#039; meeting; provisional injunction; or other civil proceedings.<\/p>\n<p>Withdrawal from negotiations and emergency preservation measures must sometimes be carried out simultaneously.<\/p>\n<p>If the doubts involve<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholder-company-funds-misappropriation\/\">Company funds misappropriated or related-party transactions<\/a>The specific cash flow and urgent risks should be clarified first before arranging negotiations and court proceedings.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-21\"><h2>21. What if the board of directors is completely unable to function?<\/h2>\n<p>If, in a joint-stock limited company, the board of directors fails to act or is unable to exercise its powers, and this has already caused potential harm to the company, <a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 208-1 of the Company Law<\/a>Given: <strong>interim administrator<\/strong> system.<\/p>\n<p>When the requirements are met, the court may, upon the application of an interested party or the prosecutor, appoint one or more temporary administrators to act on behalf of the chairman and the board of directors.<\/p>\n<p>This is a: <strong>Allowing the company to continue operating temporarily<\/strong> Tools.<\/p>\n<p>It does not mean granting a single shareholder permanent operating rights.<\/p>\n<p>No, it&#039;s not: a shareholder exit mechanism.<\/p>\n<p>Limited liability companies should also confirm the applicability of their respective company law provisions.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-22\"><h2>22. A provisional administrator and a company dissolved by the court are completely different.<\/h2>\n<p>It is important to clearly distinguish between:<\/p>\n<h3>interim administrator<\/h3>\n<p>Objective: The company must survive.<\/p>\n<p>Problem: The board of directors is no longer able to exercise its powers properly.<\/p>\n<p>Function: To temporarily maintain corporate governance and necessary operations.<\/p>\n<h3>The court ruled to dissolve<\/h3>\n<p>Objective: To close the company.<\/p>\n<p>Problem: The company&#039;s operations have encountered significant difficulties or suffered substantial damage.<\/p>\n<p>Result: The company proceeded towards dissolution and liquidation.<\/p>\n<p>Therefore: One is: <strong>Save the company.<\/strong><\/p>\n<p>The other one is: <strong>The company is closing down.<\/strong><\/p>\n<p>They cannot be used interchangeably.<\/p>\n<div class=\"exit-company\"><section><h3>interim administrator<\/h3><p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 208-1 of the Company Law<\/a><\/p><p>The board of directors fails to act or is unable to exercise its powers, which could potentially harm the company.<\/p><p>Purpose: To maintain the company&#039;s necessary operations. Not for shareholders to withdraw.<\/p><\/section><section><h3>The court ruled to dissolve<\/h3><p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 11 of the Company Law<\/a><\/p><p>The company is experiencing significant difficulties or substantial damage in its operations.<\/p><p>Purpose: To terminate the company and proceed with dissolution\/liquidation. Shareholders applying for the closure of a joint-stock company must note: have held shares for at least 6 months and possess a total issued share capital of 10% or more.<\/p><p>A 50-50 deadlock will not automatically lead to the dissolution of a company.<\/p><\/section><\/div>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-23\"><h2>23. If the shareholders cannot reach an agreement, can they ask the court to dissolve the company?<\/h2>\n<p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 11 of the Company Law<\/a>Provided: Court-ordered dissolution system.<\/p>\n<p>if: <strong>The company&#039;s operations are experiencing significant difficulties or substantial damage.<\/strong> Shareholders may apply to the court for a ruling to dissolve the company in accordance with the law.<\/p>\n<p>However: Shareholders arguing does not automatically mean that the company should be dissolved.<\/p>\n<p>The court will consider: whether the deadlock has genuinely affected the company&#039;s operations; whether the problem can be resolved through other governance methods; whether the company can still operate normally; the extent of the damage; and the necessity of dissolution.<\/p>\n<p>This should generally be considered a tool for assessment only when corporate deadlock is very serious, not the first step in every shareholder disagreement.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-24\"><h2>24. A shareholding threshold is required for a joint-stock limited company to apply to the court for dissolution.<\/h2>\n<p>according to<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 11 of the Company Law<\/a>A joint-stock company must consist of: <strong>Continue for more than 6 months<\/strong> hold: <strong>Total issued shares of 10% or more<\/strong> The shareholders filed a petition.<\/p>\n<p>Therefore, when a court-ordered dissolution is involved, the first thing to confirm is: the company type; the shareholding ratio; and the holding period.<\/p>\n<p>Just because &quot;I am a shareholder&quot; does not presuppose that I am eligible to file a petition.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-25\"><h2>25. A court-ordered dissolution does not mean &quot;the court helps you sell your shares.&quot;<\/h2>\n<p>This is very important.<\/p>\n<p>If the court rules to dissolve the company, the legal effect is neither that the court finds a buyer for one of the parties, nor that the other shareholder must buy it out.<\/p>\n<p>Instead, the company is heading towards dissolution and liquidation.<\/p>\n<p>Therefore, if the original real purpose was simply: &quot;I want to leave, but the company is still doing well.&quot;<\/p>\n<p>Demanding the company&#039;s dissolution directly may not be the most economically beneficial solution.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-26\"><h2>26. When a company clearly has value, the usual approach is to discuss equity exit first, rather than shutting down the company.<\/h2>\n<p>For example, a company that: has stable revenue; has employees; has customers; has a brand; has technology; and has long-term contracts.<\/p>\n<p>The real problem is simply that the two founders are completely unable to work together.<\/p>\n<p>In this situation: allowing the company to continue operating, but having one person take over, often preserves more value than liquidating the entire company.<\/p>\n<p>Therefore, resolving shareholder deadlock cannot solely rely on the strongest legal weapons.<\/p>\n<p>You should look for: <strong>The best solution to preserve the company&#039;s and its equity value.<\/strong><\/p>\n<p>Involving<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/investment-litigation\/\">Equity investment and investment contract disputes<\/a>At that time, the original investment documents and the basis of the claim should still be confirmed;<a href=\"https:\/\/fdlaw.com.tw\/en\/commercial\/\">Disputes over company business and management rights<\/a>The company&#039;s continued operation and exit from the transaction must be considered simultaneously.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-27\"><h2>27. What documents should shareholders prepare before discussing exiting the company?<\/h2>\n<p>At least organize:<\/p><div class=\"exit-checklist\"><section><h3>1. Company Basic Information<\/h3><p>Company Type, Articles of Association, Company Registration<\/p><\/section><section><h3>2. Equity<\/h3><p>Who holds how much equity and when did the changes occur?<\/p><\/section><section><h3>3. Corporate Governance<\/h3><p>Directors, supervisors, chairman&#039;s voting rights<\/p><\/section><section><h3>4. Shareholders&#039; Agreement<\/h3><p>Exit Preferred Purchase and Tractor Sale Valuation<\/p><\/section><section><h3>5. Finance<\/h3><p>Recent financial reports: bank borrowings, shareholder transactions, retained earnings<\/p><\/section><section><h3>6. Company Value<\/h3><p>Key customer contractual assets brand technology<\/p><\/section><section><h3>7. Personal Responsibility<\/h3><p>Bank guarantee lease director&#039;s liability and other joint and several liability<\/p><\/section><section><h3>8. The Real Goal<\/h3><p>Should I stay?<\/p>\n<p>Do I want to quit?<\/p>\n<p>Or do you just want to save the company first?<\/p><\/section><\/div>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-28\"><h2>28. In a 50-50 shareholder deadlock, the most effective strategy is usually not to first launch a major lawsuit.<\/h2>\n<p>In many cases, what&#039;s truly needed in the end is to first clarify: legal rights; company control; company value; and urgent risks.<\/p>\n<p>Further decisions may include: negotiating a buyout; finding a third-party acquirer; enforcing the shareholders&#039; agreement; initiating a shareholders&#039; meeting or corporate governance proceedings; taking preservation measures; or assessing dissolution if the business truly cannot continue.<\/p>\n<p>Lawsuits are one tool, not the only solution to a stalemate.<\/p>\n<\/section>\n<section class=\"exit-section\" id=\"exit-section-29\"><h2>29. How does Fidelity Law Firm handle shareholder exits and corporate deadlock?<\/h2>\n<p>Shareholder exit cases typically involve: company law; equity; shareholder agreements; corporate governance; financial information; valuation; civil litigation; and negotiation.<\/p>\n<p>When handling these types of cases, Fidelity Law Firm first creates: a shareholding chart; a governance chart; a financial chart; a liability chart; and an exit strategy.<\/p>\n<p>Further confirmation is needed: Was the deal bought out by other shareholders? Or was it acquired by a third party? Should it be handled according to the shareholders&#039; agreement? Should the accounts be checked first? Should corporate governance be addressed first? Or has the case become so serious that court intervention is required?<\/p>\n<p><a href=\"https:\/\/fdlaw.com.tw\/en\/team\/charles-lee\/\">Lawyer Li Yusheng<\/a>Having previously served as the legal director of a large accounting firm, when handling corporate and equity cases, I would examine corporate governance, transactions, financial data, and the ultimate business objectives of shareholders simultaneously, rather than simply addressing shareholder conflicts based on a single provision of corporate law.<\/p>\n<\/section><section class=\"exit-faq\"><h2>50-50 shareholder deadlock and common shareholder exit issues<\/h2><details><summary>What if two shareholders each hold 50% and can&#039;t reach an agreement?<\/summary><p>First, confirm the company type, articles of association, board seats, shareholder agreement, and the true source of the deadlock. Then, assess options such as share buyout, third-party acquisition, shareholder or board meeting procedures, preservation measures, and court proceedings if the company is experiencing severe operational difficulties. A 50-50 situation does not mean there are no legal solutions.<\/p><\/details><details><summary>If a shareholder decides they no longer wish to continue the business, can they request the company to return their initial investment?<\/summary><p>Generally, a shareholder cannot demand the return of their original investment simply because they want to exit. Equity investment and company loans are different legal relationships, and exit usually requires equity transfer, buyout agreement, contractual mechanism, or other legal procedures.<\/p><\/details><details><summary>Can shareholders of a limited liability company sell their investment directly to someone else?<\/summary><p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 111 of the Company Law<\/a>The transfer of equity in a limited liability company is subject to the consent of other shareholders and a system of priority acquisition; the transfer thresholds for general shareholders and directors are also different, and therefore should be handled according to the shareholder&#039;s status and specific transaction conditions.<\/p><\/details><details><summary>Can shares of a joint-stock company be freely transferred?<\/summary><p>In principle, a general joint-stock company shall...<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 163 of the Company Law<\/a>Shares are freely transferable, but there are still special legal provisions. Closed-end joint-stock companies can stipulate restrictions on share transfers in their articles of association, so the company type and articles of association must be confirmed first.<\/p><\/details><details><summary>Can I ask the company to buy back my shares?<\/summary><p>It cannot be generalized to assume that all shareholders have this right. A joint-stock company&#039;s right to buy back its own shares is protected.<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 167 of the Company Law<\/a>Despite these restrictions, there must still be a legal basis and compliance with relevant procedures. In practice, shareholder buyouts are often handled by other shareholders or third parties.<\/p><\/details><details><summary>Is the equity exit price based on the initial investment amount?<\/summary><p>Not necessarily. Equity value can be influenced by a company&#039;s assets, liabilities, profits, cash flow, customers, brand, technology, contracts, and other factors. The initial investment is only the historical cost and does not equal the current equity value.<\/p><\/details><details><summary>Can a company be dissolved by the court if there is a deadlock between 50 shareholders and 50 shareholders?<\/summary><p><a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 11 of the Company Law<\/a>The regulations stipulate that when a company faces significant difficulties or substantial damage, shareholders may petition the court for its dissolution. For joint-stock companies, shareholders may request an additional period of continued shareholding and a shareholding threshold (10%). The court will ultimately determine the outcome based on the specific deadlock and the company&#039;s operating conditions.<\/p><\/details><details><summary>Can a temporary administrator be appointed if shareholders disagree?<\/summary><p>If the board of directors fails to act or is unable to exercise its powers, and this puts the company at risk of harm,<a href=\"https:\/\/law.moj.gov.tw\/LawClass\/LawAll.aspx?pcode=J0080001\" target=\"_blank\" rel=\"noopener\">Article 208-1 of the Company Law<\/a>This may involve a temporary administrator system. However, the function of a temporary administrator is to maintain the necessary operation of the company, not to serve as a tool for equity withdrawal or permanent acquisition of management rights.<\/p><\/details><details><summary>If a shareholder withdraws, will the bank guarantee originally made on behalf of the company automatically disappear?<\/summary><p>The guarantee will not automatically disappear due to the transfer of shares. It is still necessary to confirm whether to terminate or replace the guarantor based on the original guarantee agreement and the creditor&#039;s consent. Therefore, personal guarantee liabilities must be dealt with simultaneously when withdrawing from negotiations.<\/p><\/details><details><summary>The company is transferring assets; should we discuss exiting the business gradually first?<\/summary><p>If there is an imminent risk of significant asset transfer, change of control, or loss of data, it may be necessary to first assess preservation measures or other court proceedings before simultaneously conducting equity exit negotiations.<\/p><\/details><\/section>\n<section class=\"fdlaw-related-posts\"><h2 class=\"fdlaw-related-posts__title\">Further reading<\/h2><div class=\"fdlaw-related-posts__grid\"><a class=\"fdlaw-related-card\" href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholder-dispute-company-deadlock\/\"><div class=\"fdlaw-related-card__image\"><img width=\"768\" height=\"429\" src=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-768x429.jpeg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" loading=\"lazy\" decoding=\"async\" sizes=\"auto, (max-width: 767px) calc(100vw - 40px), (max-width: 1100px) 45vw, 520px\" srcset=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-768x429.jpeg 768w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-300x167.jpeg 300w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-1024x572.jpeg 1024w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-1536x857.jpeg 1536w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-2048x1143.jpeg 2048w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_u5000au5000au500-18x10.jpeg 18w\" title=\"\"><\/div><div class=\"fdlaw-related-card__body\"><h3 class=\"fdlaw-related-card__title\">What to do when shareholders quarrel and the company is in a deadlock? First, confirm the shareholding structure, accounting records, board of directors, and exit strategy.<\/h3><p class=\"fdlaw-related-card__excerpt\">When conflicts arise among company shareholders, the real difficulty often lies not in the &quot;disagreements,&quot; but in the fact that the conflict has begun to affect the company&#039;s accounts, board of directors, shareholders&#039; meetings, seals, bank accounts, important contracts, or business decisions.<\/p><span class=\"fdlaw-related-card__more\">Read the full article \u2192<\/span><\/div><\/a><a class=\"fdlaw-related-card\" href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholder-account-inspection-inspector\/\"><div class=\"fdlaw-related-card__image\"><img width=\"768\" height=\"429\" src=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-768x429.jpeg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" loading=\"lazy\" decoding=\"async\" sizes=\"auto, (max-width: 767px) calc(100vw - 40px), (max-width: 1100px) 45vw, 520px\" srcset=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-768x429.jpeg 768w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-300x167.jpeg 300w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-1024x572.jpeg 1024w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-1536x857.jpeg 1536w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-2048x1143.jpeg 2048w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2026\/10\/Gemini_Generated_Image_ysmpxsysmpxsysmp-18x10.jpeg 18w\" title=\"\"><\/div><div class=\"fdlaw-related-card__body\"><h3 class=\"fdlaw-related-card__title\">What if a company refuses to show its books to its shareholders? First, determine whether it&#039;s a limited liability company or a joint-stock company, then consider the auditor&#039;s application.<\/h3><p class=\"fdlaw-related-card__excerpt\">When shareholders conduct an audit, the first step is not to directly request an auditor to confirm whether the company is a &quot;limited liability company&quot; or a &quot;joint-stock company.&quot; First, confirm whether you still have legal shareholder status and the status of your shareholding or investment. Then, confirm whether what you truly cannot obtain are financial statements, shareholder meeting records, accounting books, bank statements, or a specific transaction. Leave it at that\u2026<\/p><span class=\"fdlaw-related-card__more\">Read the full article \u2192<\/span><\/div><\/a><a class=\"fdlaw-related-card\" href=\"https:\/\/fdlaw.com.tw\/en\/blog\/shareholders-agreement\/\"><div class=\"fdlaw-related-card__image\"><img width=\"660\" height=\"465\" src=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/02\/messageImage_1740755285095.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" loading=\"lazy\" decoding=\"async\" sizes=\"auto, (max-width: 767px) calc(100vw - 40px), (max-width: 1100px) 45vw, 520px\" srcset=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/02\/messageImage_1740755285095.jpg 660w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/02\/messageImage_1740755285095-300x211.jpg 300w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/02\/messageImage_1740755285095-18x12.jpg 18w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/02\/messageImage_1740755285095-140x100.jpg 140w\" title=\"\"><\/div><div class=\"fdlaw-related-card__body\"><h3 class=\"fdlaw-related-card__title\">A comprehensive analysis of common issues in shareholder agreements: What should shareholders pay attention to during consultation and negotiation? To protect your rights, start with understanding. A professional business lawyer will tell you.<\/h3><p class=\"fdlaw-related-card__excerpt\">This article focuses on quickly summarizing the key points that shareholder agreements should address first: capital contribution, voting rights, board seats, share transfer, shareholder exit, and dispute resolution mechanisms. If a shareholder dispute has already occurred, the shareholding structure, articles of association, corporate governance, and court remedies should be separately confirmed. Shareholder agreements should be reviewed along with the articles of association, board of directors, and shareholder meeting operations; and subject to company law\u2026<\/p><span class=\"fdlaw-related-card__more\">Read the full article \u2192<\/span><\/div><\/a><\/div><\/section>\n<aside class=\"exit-cta\"><h2>The real issue to resolve in a shareholder deadlock is not just who exits, but how to clearly separate the responsibilities of the company and individuals after their exit.<\/h2><p>Equity transfer is only one part of a shareholder&#039;s exit. A truly complete exit usually involves dealing with changes in directors and officers, consideration, shareholder loans, company books, bank authorizations, personal guarantees, undistributed profits, and past liabilities. If the two shareholders are completely unable to cooperate, the company&#039;s value and legal structure can be determined first, before deciding on a buyout, third-party acquisition, corporate governance, or court proceedings.<\/p><div class=\"exit-actions\"><a class=\"exit-button\" href=\"https:\/\/line.me\/ti\/p\/@723pifhz\" target=\"_blank\" rel=\"noopener\">LINE inquires about shareholder deadlock\/equity exit<\/a><a href=\"https:\/\/fdlaw.com.tw\/en\/shareholder-dispute-lawyer\/\">Shareholder dispute and equity dispute services<\/a><\/div><p><a href=\"tel:0277093611\">02-7709-3611<\/a><\/p><\/aside><\/div>","protected":false},"excerpt":{"rendered":"<p>50\u5c0d50\u80a1\u6771\u50f5\u5c40\uff0c\u5148\u4e0d\u8981\u628a\u300e\u9000\u51fa\u300f\u76f4\u63a5\u7b49\u540c\u516c\u53f8\u9000\u9322 \u5148\u78ba\u8a8d\u516c\u53f8\u662f\u6709\u9650\u516c\u53f8\u3001\u4e00\u822c\u80a1\u4efd\u6709\u9650\u516c\u53f8\uff0c\u9084\u662f\u9589\u9396\u6027\u80a1\u4efd\u6709 [&hellip;]<\/p>","protected":false},"author":4,"featured_media":12716,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","footnotes":""},"categories":[136],"tags":[],"class_list":["post-12707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-law"],"blocksy_meta":{"page_structure_type":"type-4","has_hero_section":"enabled","hero_section":"type-2","page_title_bg_type":"color","pageTitleBackground":{"background_type":"color","backgroundColor":{"default":{"color":"#152f50"}}},"pageTitleFontColor":{"default":{"color":"#ffffff"}},"pageMetaFontColor":{"default":{"color":"#e3eaf1"},"hover":{"color":"#d8bf80"}},"hero_height":{"desktop":"340px","tablet":"340px","mobile":"360px"},"styles_descriptor":{"styles":{"desktop":"[data-prefix=\"single_blog_post\"] .entry-header .page-title {--theme-font-size:30px;--theme-heading-color:#ffffff;} 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href=\"https:\/\/fdlaw.com.tw\/en\/blog\/category\/commercial-law\/\" rel=\"category tag\">\u5546\u6cd5<\/a>","qubely_excerpt":"50\u5c0d50\u80a1\u6771\u50f5\u5c40\uff0c\u5148\u4e0d\u8981\u628a\u300e\u9000\u51fa\u300f\u76f4\u63a5\u7b49\u540c\u516c\u53f8\u9000\u9322 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