Legal Study On Abolishing Veil Piercing

Through the investigation to some theories and the consideration factors of the existing veil piercing, the article puts forward that the veil piercing theory is misty in boundary, the judge's discretion is broad, and the delicate reasoning and unified standard is absent, thus the utmost examination method we can turn to is the value of equity and justice in jurisprudence. Our academic theories do not evade from the standard of the United States, but try to make the theory more systematic and more logic. We should change our justice system to apply this theory. Due to veil piercing theory's abnormal occurrence and its target faintness, it hasn't the function of limiting the risk extension. The article claims to abandon the veil piercing theory, and establish abolishing veil piercing theory, persistent limited liability of new content, and clarify duties of the shareholders.The emergence and development of the corporate personality and limited liability has proved the shareholder's limited liability experienced long-term tests, and played an important role in rather long period of growth. But along with the development of the modern company, the crisis also appears from limited liability, the law takes means to limit it, among them piercing veil theory is most important one. The traditional limited liability privilege theory can't lift the ban on itself, the article puts forward new content theories of the limited liability. The article substitutes the efficiency standard for the equity and justice value which may bring confusion, argues to break the traditional agency theories and change company as the combination of contract from the hypostatic and contractual theories of business enterprise, the shareholder is just one side of the company interest body, need not to be responsible for company's liability. The article investigates four forms of companies, and concluded the limited liability is not the privilege of the shareholder, but the most efficient form of responsibility and all parties concerned will benefit from it. At the same time, several corporate governance structure and corporate'social responsibility also represent the tendency of weakening shareholder's control power. The article tried to make clear natural person shareholders'liability in voluntarily creditor and involuntarily creditors. The former includes the misleading prior to and after the contract, and the latter includes the application of the shareholder responsibility of participate the infringement affairs pursue and the related assistance means. The article suggests the connected enterprise and their responsibilities and the responsibility allocation be specially provided. The article puts forward some suggestions to shareholder responsibility...