Research On Disregard Of Corporate Personality

The theory on disregard of corporate personality is the product of western civilization of the rule of law. It is the product of specific judicial practice in such countries that attach more importance to the specific judicial cases than on general regulations which are not specific. Based on the judicial practice, the theory on disregard of corporate personality first appeared and came into force in the United States. Subsequent to the United States, Britain and civil law countries have continually established the theory on disregard of corporate personality. In 2006, the Article 20 of the Company Law of China for the first time established the theory on the disregard of corporate personality. This provides foundations for the judicial practice in the respect of legislation on disregard of corporate personality, which offer appropriate laws to abide by. Hence disregard of corporate personality in China reach a new flourishing period.However, it is sort of late for the theory to be established in China, which accordingly leads to the weak theoretical basis. In China, there is lack of judicial precedents for reference and study. Laws on the disregard of corporate personality have been enacted, but those laws are doctrinal and lack maneuverability, thus they are of little help to courts at all levels in the judicial practice. Because of this, the systematic and comprehensive analysis of the connotation, characteristic, theoretical foundation and of applicable condition, various relevant theory in the Occident is of great significance .The most general core spirit of the theory on the disregard of corporate personality is summarized and at the same time we shall take into consideration China's specific conditions and economic development stages. The combination of the theory and China's practice will improve and perfect the theory construction and will be of extremely vital significance for China's specific judicial practice.During the progress of constructing and perfecting the theory with Chinese characteristic, we shall adhere to the method that theory should be integrated with practice. We must strengthen the theoretical study and innovation, and pay enough attention to the specific conditions in China oriented on our real situation of our country. With regard to theory, we must summarize the theoretical foundation for China, on the basis of the analysis of foreign theories. Theory is innovated once more combined with the China's judicial practice, making the theory on the disregard of corporate personality have China's characteristics and suitable for China's realities. The theory on the disregard of corporate personality and the theory on independent personality are the two cornerstones of company legal person system. Without either of them, the company legal person system cannot be carried out normally. The characteristic of induction of the theory on the disregard of corporate personality requires that we should first get possession of sufficient quantities of judicial practice, conclude the theory through the analysis of the legal case which can be good to guide future judicial practice. This requires that we should pay special attention to the role of judicial case. In the present stage, the extent to which our market economy develops is low and social integrity is not good. Compared to western countries, the behavior of abusing corporate personality is more popular. So we should relax standards which shall restrict the use of the theory of disregard of corporate personality in order to combat the behavior of abusing corporate personality and to maintain good social order.