Corporation's Trans-investment

Corporation is a legal person established by shareholders for profit in accordance to law. As the legal person,corporation has the personality. According to article 36 of "general principles of civil law",legal person has the civil right ablility and behavior ability. Corporation is the product of law,an imitation of law and obviously imaginable.Different from natrual person,however,corporation's right ability is confined in essence,law and regulations. Among these confinations,some is bom ,and can not be changed. Some can be replaced in that they are for legal consideration,such as the limitation to corporation's trans-investment ability and the limitation to invested objects. But with the development of social economy and the progress of human being's civilization,these confinations have been abolished in mondern law,which shows the limitaion degree is mainly decided by the progress situation of law,the law is more pregressive,the corporation's right ability is broader,and the the limitation is looser.No matter confine corporation's trans-investment or loosen the limition,it is a choice between the value of efficiency and fairness for legislators in fact. In the modern time advocating to construct socialism harmony, the priority to efficiency is the demand of social development and the first persuit of law. Through loosening the limitation of trans-investment,largening corporation's autonomy of operation,enhancing the development of the whole ethic industy and commerce,builting a worldwidly famouse group,the capital would flow in the whole socilism market economy.The trans-investment may lead to the empty growth of capital and the relative bissness between mother and son company. However ,these can not become the reasons to limite trans-investment. As the legislators,they should take the liquiding measures,not limit too much and make obstacles.for the new problems in trans-investment,the risk protection beforehand,nanagement ,and salvation later should be advocated,such as the perfection of information reveal system,the gurantee of shareholders'rights,the legal liabities of trans-investments. Facing the problems in economical development,the way should be regulating by law,not obstacle the economical development for sake of law.Since the new "corporation law" is published in 2005,the legislative limitation to the corporation's trans-investment is getting looser and looser,and this brings the corporation more development opportunitis. Through analising the trans-investment,This thesis attemps to give some advices about the limition to corporation's trans-investment.