On The Application Of Personality Denial System In One Person Company

As the rapidly developing economy of our country, one-person limited liability corporate has been introduced into China since 2005. There is no doubt that the special form of limited company has its own market demand. The advantage and disadvantage of one-man company has appeared after several years’ practice. In 2014, the minimal register capital system had been abolished in the newly amended COMPANY LAW, which means that anyone can found a company with only one yuan. Meanwhile, there is no denying that a big challenge in this Game Theory has turned up to the special limited company form—“one-person limited liability corporate”. The concentration of power and the inadequate regulatory mechanism present barriers to protect the interest of all the stakeholders and realize the value of law. Disregard of corporate personality system has suppressed the abuse of one-man company shareholder’s right to some extent. However, analyze and research on international legal experience carefully can help a lot on how to put the system into practice in China.