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The Research on the Legal System about Defective Incorporation
Author: PengYan
Tutor: WangYuanMing
School: Hunan University
Course: Civil and Commercial Law
Keywords: Defective incorporation The validity of the general principles Rectification system Rectify defective Lawsuit of defective incorporation Civil liability
CLC: D922.291.91
Type: Master's thesis
Year: 2009
Downloads: 182
Quote: 2
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Abstract
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During the establishment of corporation, the defective corporation can’t virtually resist the business risks even though he gains the company registration. And the defective incorporation has negative effect on the stability of the corporation that will also do harm to the interest involved the company, shareholders, and creditors. And it will finally do great harm to the stability of economy order. Despite the differences between the two major law systems, it can be drawn a conclusion that there is much coincidence between them. And the coincidence is upholding validity of defective incorporation. Even if the different regulations in the civil and the common law system on the defective incorporation, they also aim at lacking the harm brought by uncertainty of the legal personality of defective incorporation and the efficiency of business trading. Unfortunately, our Corporation Law only has some rough and fragmentary stipulation and is defective with the following problems: ambiguity about existence of the legal personality of defective incorporation, too narrow a scope of defect, lack of liabilities of related parties, and etc. We should take advantage of the two major law systems, should clearly admit validity of defective incorporation and furthermore perfect the institutional arrangements including remedy of defective incorporation, lawsuit on defective incorporation and incurred civil liabilities. I expected the advices will do some favor for the legislation about the defective incorporation in China.
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CLC: > Political, legal > Legal > Chinese law > Economic Law > Corporate law, company law
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