Discussion On The Complaint Of The Disregard Of Corporate Personality

Company's independent status of legal person and shareholder's limited liability is the core of modern corporate organization. These two characters not only facilitate investment but also ensure the maximization of investors'benefits. The corporation, relying on its independent status of legal person, has great contribution on stimulating investment, protecting shareholders'benefit and developing the economy. However, the abuse and absolution of company's independent status of legal person inevitably hurt the benefits of the creditors and social community. The introduction of piercing the corporate veil in the newly published'Company Law'brings this issue to the judicial practice. This paper describes the nature of piercing the corporate veil and the conditions it applies. Furthermore, it discusses problems that exist in the judicial practice from the perspective of lawsuit. These problems include qualified parties, applied cautiously, the allocation burden of proof,the substantial part of proof ,application of law for corporations.I hope the paper can provide an ideal solution to the lawsuit of piecing the corporate veil.