China Denial System

Corporation　is　a　typical　form　for　enterprise　organization　in　the　modern　society.　The　corporation　obtains　its　independent　personality　due　to　the　establishment　of　corporation　system.　The　system　also　entitles　the　stockholders　the　limited　liability.　It　greatly　stimulates　the　activity　of　the　investors　and　promotes　economic　development.　The　limited　liability　of　shareholders　is　the　cornerstone　of　the　modern　corporate　law,　it　is　the　key　of　the　corporate　laws,　which　constitutes　the　two　important　pillars　for　the　company　system.　But　the　limited　liability　system　lays　emphasis　on　protecting　the　benefit　of　shareholders,　and　neglects　of　protecting　communal　benefit　and　others.　But　the　limited　liability　system　lays　emphasis　on　protecting　the　benefit　of　shareholders,　and　neglects　of　protecting　communal　benefit　and　others.　In　practical　life,　the　advantageous　position　of　the　shareholders　of　the　corporation　is　bound　to　result　in　the　danger　of　shareholders　(shareholders　with　controlling　shares)　trying　to　intermingle　the　corporate　conduct　with　their　own　personal　wills.　In　attempt　to　maximize　their　interests,　the　shareholders　with　controlling　shares　will　use　their　dominant　position　in　the　corporation　to　engage　in　conduct　that　is　abusive　to　the　corporate　personality,　and　hurt　the　interests　of　creditors,　so　as　to　achieve　the　purpose　of　transferring　the　cost　of　business　risks　to　the　creditors.　With　the　rapid　development　of　the　economy,　the　problems　of　the　corporation　occur　with　a　regularity　and　things　are　getting　worse　and　worse.　The　concept　of　disregarding　the　corporate　personality　is　a　way　of　dealing　with　the　notable　problems　of　the　abuse　of　the　corporate　personality.　This　concept　dated　back　to　the　19th　century　America,　it　became　popular　in　UK　and　Germany　earlier　in　the　20th　century,　and　was　adopted　by　Japan　in　the　1950s.　This　concept　effectively　helps　to　achieve　equitableness　through　making　afterwards　remedies　to　the　negative　effects　the　corporate　legal　personality　system　produced,　makes　the　just　and　fair　goal　of　legal　spirit　into　reality,　and　thus　promotes　the　development　of　the　corporate　　system.　In　our　country,　the　concept　of　disregarding　the　corporate　personality　has　not　found　recognition　in　law　yet,　which　lead　to　the　difficult　of　solving　such　problems　in　practice.　The　legislation　still　lags　far　behind.　To　deal　with　the　notable　problems　of　the　abuse　of　the　corporate　personality,　it　is　essential　of　establishing　disregarding　of　the　corporate　personality　principle　in　our　legal　system.　In　view　of　this,　this　essay　attempts　to　give　a　preliminary　discussion　of　the　theory　on　disregarding　of　the　corporate　personality　in　our　country,　thoroughly　discuss　different　views　about　whether　to　establish　this　principle　or　not,　and　put　forward　some　suggestions　of　how　to　establish　it　in　our　legal　system.　There　are　three　parts　in　this　essay.　The　first　part　talks　about　the　real　meaning　of　the　concept　of　disregarding　the　corporate　personality.　Aiming　at　several　wrong　thoughts　about　this　concept　in　our　academic　circles,　the　writer　tells　about　the　original　of　this　name　through　the　way　of　translating　the　concept　of　disregarding　the　corporate　personality,　and　gives　some　suspicion　of　it.　The　writer　denies　wrong　thoughts　in　academic　circles　for　a　long　time　after　analyzing　the　logic　contradictions　in　real　meaning　and　external　meaning.　Furthermore　the　writer　talks　about　the　real　meaning　of　the　theory　through　the　responsibility　of　corporations　,the　practice　of　legislature　and　the　implementation　of　the　rules　in　many　other　countries. The　second　part　gives　a　brief　introduction　about　different　options　about　whether　to　introduce　the　concept　of　disregarding　the　corporate　personality　in　our　country,　and　puts　forward　different　view　about　"objecting　theory".　This　essay　suggests　that　the　theory　should　be　introduced　to　our　country,　and　such　as　the　significance:　making　the　just　and　fair　goal　of　legal　spirit　into　reality　and　promoting　the　development　of　the　corporate　law.　The　third　part　is　the　key　part　in　this　essay.　It　explains　the　design　for　the　introduction　of　the　legal　theory　to　our　country.　Based　on　our　country's　reality　problems　and　other　countries'　related　practical　conditions,　the　writer　analyzes　and　explains　the　application　of　condition,　elements　of　this　theory,　and　gives　suggestions　of　how　to　avoid　abusing　the　theory　in　the　practice.　The　writer　hopes　the　essay　will　provide　the　reference　to　the　further　practice.　　　　From　our　specific　operation　of　corporate　personality,　it　is　urgent　for　us　to　establish　the　concept　of　disregarding　the　corporate　personality.　Therefore,　we,　no　matter　in　academic　circles　or　practical　circles,　must　strengthen　the　research　and　exploration　on　the　issue　to　make　our　corporation　system　more　perfect　day　by　day.