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The Research on the Company Initiator Qualification

Author: LiuShuGuang
Tutor: XiaoHaiJun
School: Hunan University
Course: Legal
Keywords: Company Promoter Qualification Legal consequences Improvement of legislation
CLC: D922.291.91
Type: Master's thesis
Year: 2009
Downloads: 100
Quote: 1
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Abstract


The promoter’s qualification system is of great significance in the company law,which guarantees trade security and promotes commercial trade.Compared with advanced foreign legislation regarding company promoter qualification,China’s Company law is obscure in this issue and needs to be improved.The prerequisites of being a company promoter include a certain number of persons of fixed abode within China,nationality correspondent to country of company forum to be located;behavior capacity;not holding a public post;the aim to profits;prescribed subject characteristics.With the development of China’s economy,there is increasing need to do research into certain specific subjects:labor union and relevant persons and enterprises in the course of a company’s transformation;persons without behavior capacity;non—profiting legal person;partnership,state functionary.If these conditions are not met for the qualification of being a company promoter,possible results are company establishment defects,invalid company establishment,or ineligible shareholder.From the principle of enterprise maintenance and economical efficiency,by adopting certain measures,however,the legal status of a company cquld be retained,enabling the company to survive;the concerned parties could be remunerated through legal channels . In the process of company reform and improvement,as long as the subject has the rights capacity and investing capacity,the permission does not counter its own tenet and aim,not danger is involved in terms of trade security and public order,no prohibition is prescribed in laws or regulations,the subject should be granted the qualification of being a company promoter.The legislature should respect the market rule and balance conflicting interests,instead of imposing overly control or barrier.Therefore,we should draw lessons from other countries’legislature and probe into China’s own conditions in order to throw light upon the reform of Company Law.It is expected that the stipulation would be:non-profiting legal persons and persons without behavior capacity shall have company promoter qualification;state organs,especially the legislature and power organ,state civil servant,persons with seriously poor credit, competition-prohibited subjects shall not have company promoter qualification.

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CLC: > Political, legal > Legal > Chinese law > Economic Law > Corporate law, company law
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