The Status Quo Of China's One-man Company And The Legal Regulation System

One-person company is an emerging form of corporate businesses, attitude toward which differs among nations, making it a heated topic in corporate law research. It has become widespread tendency of corporate legislation among nations to recognize and regulate one-person company with the aim to realize its positive impact upon social economy while avoiding its negative sides. The emergence of one-person company constitutes a big smash to the foundations of traditional corporate theories; in particular, one person' s control over a company may, in the absence of restrictions and balance among multi-shareholders, well lead to abuse of corporate entity and limited liability, presenting extreme risk to its creditors or other stakeholders and prejudicing the principle of justice and equity.One-person companies had been ignored by China's corporation law for a long time, but they actually existed (including one-person companies in form and in essence). The lag between the law and real demand had made it necessary to update or amend the law. Fortunately, amendment of the Corporation Act was adopted on the eighteenth session of the Standing Committee of the Tenth Nation Assembly, China's one-person company system thus introduced and the nation's corporation law perfected.In the author' s opinion, China needs to consider overseas advanced risk control mechanism, and to establish a full set of corporate risk control regime from the points of capital guarantee, information disclosure, internal supervision as well as denial of corporate status. The main ones are minimum capital, name alarming, relevant information and financial disclosure, internal supervision and denial of corporate personality. The denial of corporate personality of one-person company, among others, stands not only as a form of judicial remedy, but as a...