Defects LLC is applicable provided that the shareholders and the company personality independent and separated from each other. If shareholders do not respect the company 's personality, contrary to the "separation principle", it could lead to abuse at any time and away from the original intention of the limited liability company 's legal system, to the detriment of the interests of creditors of the company and social welfare. The risk of abuse of limited liability that may occur at any time, in particular: Firstly, limited liability company has the potential to abuse the personality, in violation of the principle of separation of ownership and management rights dimension level, illegal manipulation of the minority shareholders in its individual
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If a person claims into the unlimited liability system to implement the "tort liability of shareholders according to the proportion allocation principle", that is when the company 's assets is not enough to satisfy the creditors request, to safeguard the security of transactions, the creditor shall have the right in accordance with the proportion of capital contribution of shareholders directly to shareholders claim; dual responsibility mechanism that retro GmbH, implement limited liability and unlimited liability coexist mode, and to replace the limited liability company; guarantee mode also advocated to learn from the British company law, the shareholders bear limited responsibility to ensure to make up for lack of limited liability to the creditor, and can prevent the abuse of limited liability, damage the interests of creditors. There is no denying the fact that some of these opinions are reasonable, but it can be concluded that the analysis can be concluded. First of all, the inherent nature of unlimited liability inherent in the problem, that is, the risk is too large for investors, and can not encourage a wide range of investment, and social production is not adapt. Secondly, although it is an earlier form, but this mode of responsibility destroyed the existence of modern corporate survival and …show more content…
But to the modern market economy stage, to the social order, the transaction security, the market fair and so on the inevitable request, how to improve the investment environment, create a fair competition market, maintain the social order of the stable and orderly become the purpose of law. However, we cannot deny the limited liability system because of the call to the fair and the justice value of the contemporary society. After all, limited liability system is the core and the cornerstone of the company legal person system, drive is to promote the vigorous development of the company, is a modern economic prosperity of countries in the world and the material prosperity of the founder. Therefore, the most valuable research attitude is not to want to implement limited liability to the company, but to explore how to improve the limited liability system and the company legal system. In this regard, the foreign legislative practice of this issue raised two solutions: first, the judicial practice in the company 's veil, "denied the corporate personality." Two is through a special company legislation to the shareholders (parent company) and the company (subsidiary) to make a direct rule of
If a person claims into the unlimited liability system to implement the "tort liability of shareholders according to the proportion allocation principle", that is when the company 's assets is not enough to satisfy the creditors request, to safeguard the security of transactions, the creditor shall have the right in accordance with the proportion of capital contribution of shareholders directly to shareholders claim; dual responsibility mechanism that retro GmbH, implement limited liability and unlimited liability coexist mode, and to replace the limited liability company; guarantee mode also advocated to learn from the British company law, the shareholders bear limited responsibility to ensure to make up for lack of limited liability to the creditor, and can prevent the abuse of limited liability, damage the interests of creditors. There is no denying the fact that some of these opinions are reasonable, but it can be concluded that the analysis can be concluded. First of all, the inherent nature of unlimited liability inherent in the problem, that is, the risk is too large for investors, and can not encourage a wide range of investment, and social production is not adapt. Secondly, although it is an earlier form, but this mode of responsibility destroyed the existence of modern corporate survival and …show more content…
But to the modern market economy stage, to the social order, the transaction security, the market fair and so on the inevitable request, how to improve the investment environment, create a fair competition market, maintain the social order of the stable and orderly become the purpose of law. However, we cannot deny the limited liability system because of the call to the fair and the justice value of the contemporary society. After all, limited liability system is the core and the cornerstone of the company legal person system, drive is to promote the vigorous development of the company, is a modern economic prosperity of countries in the world and the material prosperity of the founder. Therefore, the most valuable research attitude is not to want to implement limited liability to the company, but to explore how to improve the limited liability system and the company legal system. In this regard, the foreign legislative practice of this issue raised two solutions: first, the judicial practice in the company 's veil, "denied the corporate personality." Two is through a special company legislation to the shareholders (parent company) and the company (subsidiary) to make a direct rule of