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On Perfecting the Legal System of Corporate Donation in China from the View of Protecting the Interests of Shareholders

Author: ZhuXiaoZuo
Tutor: XuMingYue
School: Chongqing University
Course: Civil and Commercial Law
Keywords: Corporate Donation Interests of Shareholders Corporate Social Responsibilities
CLC: D922.182.1
Type: Master's thesis
Year: 2009
Downloads: 203
Quote: 2
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Abstract

In modern society, corporate donation is an important activity for companies. As a typical way to fulfill social responsibilities, corporate donation fully reflects the corporation’s duty of morality----a Good Citizen, which contributes greatly to the harmonious development of both the corporation and the society. It is of great significant that corporate donation is playing an outstanding role in the prosperity of market economy as well as corporations’development. Therefore, corporate donation is an indispensable legal system on modern corporation law. However, due to the fact that the foundation and the forming of corporation law system in China is not as early as western counties, and as the new, dynamic and developing subject of promoting the development of social economy, the companies develop very fast, both of which lead to the result that the legislation of corporate donation in China is far from perfect. What’s more, legal scholars have not paid enough attention to this issue and it is rare to see monographs and papers concerned to it. In practice, because of the lack of legal regulation, the corporate donation arouses many benefit disputes, among which the most prominent phenomenon is that improper corporate donation dose great harm to the interests of shareholders. In view of it, this thesis will discuss the perfection of the legal system of corporate donation from the view of shareholders’interests, so as to give my all to improve the legal system of corporate donation in China.The paper can be divided into three parts, and the main idea is as follows:The first part is about the brief introduction of corporate donation and the influence of shareholders’interests from this behavior. Firstly, this part defines the behavior of corporate donation, including the meaning, classification and attribute by using the ways of conceptual analysis and horizontal contrast. Secondly, this part analyses the legalization of corporate donation from the view of history, and further deals with the theoretical basis of it. Finally, on the basis of analyzing the relation between the interests of company and the interests of shareholders, this part tells the difference between the proper corporate donation and the improper corporate donation, and reveals its influence on the interests of shareholders separately.The second part analyses the anomie of corporate donation and the reasons for it from the view of shareholders’interests. First of all, this part lists the ways and expression of the acts of corporate donation that do harm to the interests of shareholders by applying the method of empirical analyses. The harmful acts include that the corporate donation those disregards companies’economic strength, those results from the external pressure, those carries out for personal purposes, those lacks necessary procedures, and those violates the principle of good faith. Furthermore, in the light to the corporate donation that dose harm to the interests of shareholders in practice, this part analyses the reasons of this phenomenon from the following aspects: the shortage of the concept of modern corporate donation, the insufficiency of legal regulation and the restriction of external environment.The third part deals with the perfection of the corporate donation system in China from the view of protecting the interests of shareholders. To begin with, in order to guide the foundation of related legal systems and legal practices, this part elaborates the general principle of legal regulation for corporate donation, which includes five principles: proper donation, voluntary and unpaid donation, disclosing the information of donation, binding the procedures of donation and shouldering concerned responsibilities. In addition, this part gives three pieces of proper suggestion related with the perfection of corporate donation in China, that is the amplification of the inner management system of corporate donation, the establishment of the institution of valuing the appropriation of corporate donation, and the perfection of the relief system of protecting shareholders whose interests are violating or have been violated owing to the improper corporate donation.

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