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A Study On The Disregard Of Corporate Personality In The Debt Liability Of “Couple Companies”

Posted on:2021-05-11Degree:MasterType:Thesis
Country:ChinaCandidate:B ZhaoFull Text:PDF
GTID:2416330611960958Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
The nature of couple companies is controversial both in practice and theory.The couple company is often recognized as a one-man company,and the courts usually apply the provisions of one-man companies to couple companies.When dealing with debt disputes,the couple shareholders are required to bear the burden of proof for the independence of the company's property.If the couple shareholders cannot provide sufficient and effective evidence,they shall be jointly liable for the company's debts.From the judicial practice,it can be sure that the application of the rule of one-man companies has been expanded,which results in the abuse of the system of piercing the corporate veil.At first,the judgment above violates the basic requirements that the system of piercing the corporate veil should be used discreetly.Second,the judgment above conflicts with the provisions of one-man companies in the Company Law and rules of couple's joint debts in the Marriage Law.Third,the judgment above totally denies the independent individuals of the spouse.Finally,the judicial practise does not fully follow two basic commercial principles----the publicity principle and the commercial rechtsschein theorie.Even from the social environment encouraging entrepreneurship and transactions,couple companies should not be equal to one-man companies.The couple company is a special company between a one-man company and a general two-men company,which is still a two-men company in essence.Due to the special relationship between the couple shareholders,the risk of damaging the couple company's property and the interests of creditors increases.Thus,the standard of couple companies should be stricter than general companies.Once adopting more strict registration system,information disclosure system and improving the organizational structure of the couple company,the legal basis of disregarding of the couple company personality should be the Article 20.3 of the Company Law.
Keywords/Search Tags:couple companies, piercing the corporate veil, one-man companies
PDF Full Text Request
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