A Study On The System Of Defective Resolutions Of Companies In China

The study of the defect resolution system in companies has always been a focus and difficulty for China’s theoretical and practical circles.The "Judicial Interpretation of the Company Law(Ⅳ)" established the framework of the "three-part law" legal model of the defect resolution system by adding the effectiveness type of "resolution invalid" based on the "binary method" model of defect types.After the promulgation of the Civil Code,the company resolution behavior was included in the scope of civil legal acts,thus building China’s system of defect resolution in companies.However,with the continuous development of China’s socialist market economy and the increasing frequency of business activities and disputes,the related legislative provisions are too general,principled,and abstract,causing various dilemmas in judicial decisions.This article starts with the basic theory of the defect resolution system in companies,explains its connotation,nature,and causes,and analyzes the legal nature of defective resolution behavior to conclude that it is the essential attribute of civil legal acts.It summarizes the legislative shortcomings and practical difficulties of China’s defect resolution system.Due to the overly abstract and vague structure of China’s current legislative system,a chaotic situation that is difficult to apply uniformly arises in practice.At the same time,the single remedy for defective resolutions in companies leads to disputes that can only be resolved through litigation,which raises more complex situations due to legislation’s incompleteness during the litigation process,making it difficult to defend legal rights.In addition,China’s application of the discretionary rejection system has not been fully detailed,causing inconvenience to the trial work in practice.Therefore,this article proposes that the exploration of the company’s resolution defect system should continuously deepen in line with China’s economic development status and the reality of business activities,and,combined with practical experience,conduct a deep analysis of the current system.It summarizes the feasible solutions to solve the defects in the company’s resolution,including unifying the application of defective resolutions and adding relevant provisions on external effectiveness of defective resolutions in companies’ systems design.It also optimizes the discretionary rejection system based on balancing corporate autonomy and judicial intervention to construct a judicial intervention system for the company’s decision-making procedure defects.This aims to improve China’s company defect resolution system and maintain stable business operations.