Research On Application Of Outsider Reverse Piercing The Corporate Veil In China

China introduced the system of piercing the corporate veil in the "CompanyLaw” of2005,which was a great attempt in perfecting system of corporatepersonality.However, in recent years, the variative forms of corporate system isincreasingly diverse.Such as shareholders transfer property to the company for free orat unreasonably low prices, taking advantage of the relationship between the parentcompany or sister company to transfer assets or confuse personality highly, so as toachieve the purpose of evading the shareholders’ debt.Face the above circumstances,the traditional piercing has been unable to solve.Outsider reverse piercing means that the corporate personality is denied, thecompany and its shareholders are liable to the shareholders creditors jointly andseverally when the company shareholders abuse the independent status of company toconvey property.Outsider reverse piercing the veil has a rich social value.The theorycan effectively regulate the behavior of alienation and correct the imbalance. As theexpansion of "piercing the corporate veil", outsider reverse piercing and traditionalreverse piercing constitute an organic entirety. The theory focuses on the substance ofjustice and the realization of individual justice.It enriches and improves the corporatesystem.China must introduce outsider reverse piercing system to regulate thevariative behavior.At present, China’s research on the Disregard of Corporate Personality isconfined to the traditional areas, the study of outsider reverse piercing is seriouslyinadequate..The study involved outsider reverse piercing also stays to exploring level,there are no deep investigation and analysis. As to achieve the purpose of "piercingthe corporate veil ",the judges often do justice technical process.This approach is notonly desirable, but also far from sufficient to meet the application of outsider reversepiercing in China.In order to apply outsider reverse piercing theory to regulate abuses,we mustconstruct fully in the system perspective.We should clarify the applicable conditionsand scope, combining with the judicial practice.Improve procedural law, such as the courts of jurisdiction and the rules of evidences.To determine the justification of thesystem on the legal level and provide a clear legal basis for the application of judicialpractice,the most important thing is to set up laws for the outsider reverse piercingsystem.