Economic Analysis Perspective Defective Incorporation Sound System

The Defective Incorporation is relatively common phenomenon in the practice of the Companies Act.it not only affects the continued existence of the company personality and the interests of stakeholders, but also affects the security of transactions and the stability of the trading environment.In this paper, the use of law and economics cost-income theory, legal benefits maximization theory analysis Defective Incorporation this issue. According to the concept of China’s legislative and legislative practice, the defects established recognition system maintenance mechanism of legislation and opportunity costs are slightly lower than deny mechanism, but admitted to maintain the implementation of the mechanism and social costs can not be ignored, therefore, I believe that China should established to admit to maintain the mechanism, supplemented by different mechanisms of denial "dual track" clear difference between denial mechanism to implement defects in this system.