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Of Corporate Personality Denial System in compulsory liquidation system

Author: ZuoYaPing
Tutor: WangZuo
School: Central University for Nationalities
Course: Legal
Keywords: disregard of Corporate Personality compulsory Liquidation protecting the corporate creditors interest
CLC: D922.291.91
Type: Master's thesis
Year: 2010
Downloads: 33
Quote: 0
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Abstract


The establishment of the system of legal person enables the company to obtain independent personality, and the shareholders therefore are granted limited liability, the enthusiasm of the investor is highly stimulated, giving great impetus to the economic development. However, in reality, this system also results in the abuse of the legal person by some people for illegal purpose. This phenomenon is not incidental but the inner defects of the system of legal person. Therefore, it give birth to the system of piercing the corporation veil which firstly appeared in American, and developed in great depth in many other countries. On the premise of accepting the independent personality of the corporation, this system pierces the corporation veil in specific legal relationships and directly claims the liability of controlling shareholder behind the corporation. It supplements the system of corporation’legal personality in important ways, in other words, it doesn’t deny but protect the corporation’ legal personality. The new Corporation Law of People’s Republic of China introduces the system based on theories and practices of other countries, but its provisions are too principal, with lots of details to be articulated. It dose not include detailed provisions about extension of legal entity, objective conditions, applicable elements and legal consequences. Uniform standard is either unavailable, therefore the operability is low. Company liquidation is a very important element of corporate legal system, which,,compulsory liquidation is important in maintaining the balance of interests, avoiding disputes arising from uneven benefits, to insure the long-term and stable social and economic order. For fixed the behavior of breaching settlement obligation, this article aims at analyzing the character, applicable elements, applicable conditions of the system of piercing the corporation veil and studying advanced and mature provisions of other countries, putting forward my opinion to contribute my own efforts to the development of the system.

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