Development And Improvement For The System Of Personality Denied By Corporation In China

As the market economy has just been established in our country, the legislation for corporation has just started, which makes the legal system of corporation imperfect. There is no conception of disregard of the corporate entity in the normal legislation of our country. But with the fast development of our modern market economy, some phenomena of abusing the corporate entity and the limited liability to infringe the interest of the corporation's creditors and the public has arisen in our modern economic life. Therefore, this article is meant for a suggestion on how to establish the system of disregard of the corporate entity in China to perfect the system of the corporate entity by study on the system of disregard of the corporate entity in foreign countries, as well as by practice observe and study on some shareholders' abusing the corporate entity to infringe the interest of the corporation's creditors and the public in our country.The system of Modern Corporation, which includes two important principals of corporate independent personality and limited liability,has played an important role in investment and economic development.However, the corporate personality independence and the creditors'interests will be both abused if these two principles are absolute. In order to keep the balance between investors and creditors, safeguard the fair and justice of law, improve the corporate system, the Provision of Disregard of Corporate Personality was first created in the western countries. On 27th Otc.2005, the Provision of Disregard of Corporate Personality was stipulated in the new PRC Corporate Law.Meanwhile,because the relevant provisions are abstract, how to understand and applythe provision properly will be an important text for study in the future.To serve the judicial practice much better, this paper tries to have a subtle research on the relevant aspects of the Provision of Disregard of Corporate Personality.