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On Lmprovement of China’s One-man Company Legal System

Author: OuSongBo
Tutor: GaoZhong
School: Hunan University
Course: Legal
Keywords: one-man company legal system improvement
CLC: D922.291.91
Type: Master's thesis
Year: 2008
Downloads: 63
Quote: 0
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Abstract


One-man company has traditional strengths but also has its own characteristics, which will provide a boost to investor enthusiasm and initiative to encourage investment, promote the socio-economic development and prosperity. The new Company Law conforms to the trend of legislation of the world, adopts practices of the world, clearly gives one person’s company a legal status and all investors equally to set up investment opportunities for improving our country’s legal system, improves China’s market economy. The new system is good to the free competition, the prosperity of the private economy, and to participate in international competition. The new Company Law is in favor of reducing the diversity of investors under the cover of meaningful place in one of the companies disputes, changing China’s de facto one-man company status quo and further standardizing the market economy under the various types of the company’s development, which is conducive to the healthy and orderly establishment of a sound socialist market economic order.However, China’s new Company Law has a number of shortcomings, such as the characteristic of limited liability companies plays down; the regulations are too principle and interoperability is not strong; a company’s internal management structure doesn’t provide a comprehensive enough; the financial oversight provisions for one-man company are less developed, and so on. One-man company legal system has been running for more than two years, which also revealed a number of issues, such as operations in the course of the imbalance of power; shareholder property of the company mixes his personal property, damaging the interests of creditors; one-man company’s operating costs are relatively high; External oversight is not in place; the quality of entrepreneurs and corporate culture, ethics and so on.In the face of these problems, one-man company legal system needs to further improve the implementation and a number of measures should be taken, such as to further improve one’s constitution; further improve the scientific internal system of checks and balances system; strict capital system, strengthen financial supervision; increase public information, establish and perfect the sharing system, and strengthen the publicity style and to the application of the doctrine; the establishment and improvement of personal credit system; restrict the rights and establish and perfect combination of internal and external oversight; and improve social services and monitoring system. By analyzing the one-man company legal system and exploring its legal system, we hope to deepen their understanding of its system and serve to improve China’s legal system.

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