| In October,2005, Article 20 of the company law of the People's Republic of China comes into effect, which marks the disregard of corporate personality is formally established in our country.However, the legislative norm is so abstract and rough that makes the administration of justice face with daunting difficulties under the background of Chinese legislation which has seen written law as the resources of laws traditionally.Especially in the company of personality confused which damaged to the creditor, the article can not be applied directly.In the case of Xuzhou construction machinery group Co., Ltd. v. Chengdu Chuanjiao industry and trade Co., Ltd., the personnel confused, the business confused and the financial confused among the three defendant corporations cause the respective property is failed to distinct, inevitably leading to the confusion of corporate personality. Under this circumstance, the application of Article 20 of the Company Law of the people's republic of china in this case lacks the direct juristic basis, but the personality confused among the corporations as same as between the corporate and shareholder in the essence and harm of behavior, when the corporations confused are met certain conditions, may refer to the article, the corporations will take the responsibility. Which not only shows the remedy value of the Disregard of Corporate Personality, but also furthers to improve the Company Law. Thus, in order to bring into full play the role of the Company Law, and avoid the corporations confused, it is necessary to further refine judicial explanation and legislative normalizing. On one hand, applicable condition and norm of the law should be specified; on the other hand, it is requisite to reinforce the guided function of judicial precedents. |
PDF Full Text Request