Research On Legal Problems Of Corporation Re-investment

The emergence and development of the corporation re-investment have deep economic source. When the assets of the corporation exceed the needs of business demand, the company will have an impulse of investing surplus capital to other companies for a better return. Therefore, the pursuit of profit is the basic motive of corporation re-investment. But due to the demerits of corporation re-investment, the restrictions of the corporation re-investment are inevitable.The corporation re-investment system has been amended in new Corporation Law, and the restriction of investment has been loosened. But there is still some disharmony with other relevant systems. The demerits of corporation re-investment haven't been prevented effectively.Using the comparative analysis method, this thesis is trying to show the legal restrictions of corporation re-investment in the different period and the different legal systems. And the connection between the corporation re-investment system and one-man company system, partnership system is tried to find out in this thesis.The thesis is made up of six parts. Part1 starts from the legal definition of corporation re-investment to determine scope of research. Part2 analyses both the positive and negative effects of corporate re-investment, and thus draws a conclusion that it is necessary to prevent the negative effects possibly brought by re-investment. Part3 introduces the legal regulations in developed countries regarding corporation re-investment issues, and some relief measures of preventing the negative effects of re-investment. Part4 sums up the defects of corporation re-investment in China legislative provisions. Part5 analyses the connection between one-man company system, partnership system and re-investment system. The last part discusses about the coordination between the legal institutions, and the solution and improvement of relevant issues in the hope of meeting the needs of legal development.