Application Of The Theory Of Corporation Personality Disregard To The One-person Company

China’s Company Law provisions in the legislation, one-person Disregard of CorporatePersonality, which not only conforms to the trend of social and economic development of China,but also the world trend of the legislation, is a big step forward and highlights for the "CompanyLaw". In terms of forms compared with other sort of company one-person company in the formhas its unique advantage, for example, one-person company’s responsibility is limited, thecompany management is relatively simple. As investment cost for one-person company isrelatively low and capital operation has high efficiency, many investors are attracted. But theattention must be paid, the existence of a person company at the same time also leads to manyproblems. What often happens is that one shareholder is relatively easier to misuse the company’sindependent personality, illegal transfer of property of the company, property of company andshareholder confused, escape from legal obligations and capital flight which make the companybecome a shell company, which requires law on the one-person company to make a specialadvance prevention and the subsequent regulatory measures. Obviously disregard of CorporatePersonality system play an important role and has best efficiency for regulation to one-personcompany.The first part describes the company’s personality to deny the need for theory applicable in theone-man company, which is mainly based on two considerations. On the one hand in order tocorrect the defects of the one-man company, on the other hand, in order to protect the needs of thecreditors.The second section expands the specific circumstances that the theory is applicable to one-person company. Including significantly less than one-man company capital, and the case of aperson to avoid legal obligations or contractual obligations, as well as parent company tosubsidiary corporations manipulation in the case.The third part of the article analysis of the legal effect of the theory in the application of theone-person company. Highlights Personality Denial situation of one-person company commitment to the subject of proceedings under the civil liability, the burden of proof and the notes fordisregard of corporate personality theory applicable to one-person company.The fourth part introduces the progressive and limitations of the theory that disregard ofcorporate personality theory applicable to one-person company regulation. And points out theexistence of inadequate aspects in the circumstance of the disregard theory of corporatepersonality applicable to one-person company and also proposed in term of how to improve thetheory to promote healthy development of one-person company.