Disqualification Of Company Directors The Legal System To Study

The proposition of this dissertation is that the institution of disqualification of corporate directors is an important institution to regulate directors of chinese corporations,especially under the period of economic transformation,which have so many limitations in corporate governance.So to transplant such rules is both important and necessary.This dissertation is to research on disqualification of directors mainly based on Company Directors Disqualification Act 1986 of the United Kingdom,and recommends China should enforce its own legal regime regarding disqualification of corporate directors.This dissertation is composed of four chapters besides preface and conclusion.In the preface,I study on the following issues:to put forward the question of disqualification of corporate directors,the merit and background of this thesis,current research productions and its summarization,the object and the structure of this article,the research methods of this dissertation.The text includes four chapter,namely the analyzing frame of legal regime regarding disqualification of corporate directors,the premises of disqualification of corporate directors,the procedure of disqualification of corporate directors and the relieves of disqualification of corporate directors.In practice,there exists the phenomenon of supervising directors not well,and the following issues.Thus,to establish strict legal institution on disqualification of corporate directors is essential to harmonize the interests of the public and the corporation.I attempt to define this concept from view of corporate governance and regulation and separation of ownership and managemnet.I suggest that from the history of company it is sufficient to demonstrate that the legal regime of disqualification of corporate directors accords with corporate governance,and its origin is based on the requirement of companies as an independent entity for rules on competency of directors.The legal system of disqualification of corporate directors is the result of regulating on company and balancing interest of companies and the public by the state.In the article I also study on the essentiality and inevitability of the legal regime of disqualification of corporate directors from the view of institution merit.The premises of disqualification of directors is to define the bound of this institution,namely where there are conditions which triggering legal rules,under which the courts can apply rules of disqualification of directors.Disqualification of directors is to forbid persons to occupy the office of directors through courts' order or other manners.The applicants of case of disqualification of directors is the secretary of Departmnet of Trade and Industry,while the defendants are directors to be disqualified by courts.The courts which have jurisdiction over the suits of disqualification of directors are courts which have jurisdiction over liquidation and bankruptcy of corporations.The conditions under which the court can make an order to disqualify directors are breach of duty of good faith and breach of duty of care where the corporations are bankrupted.The period of disqualification of directors is correlated to the extent positively.The institution of register can dynamicly force to publish information about disqualification of corporate directors.Meanwhile,to relieve the effect of system of disqualification of directors to the disqualified directors,there establishs substitute institutions,namely promises of directors and granting of directors,which are important guarantee of corporate directors.I indicate from the view of system theory that the legal regime of disqualification of corporate directors is an important part of the category of corporate governance based on comparative analyzing of rules of other countries regarding legal regime of disqualification of corporate directors.I prove that the legal regime of disqualification of corporate directors is in favor of protecting companies and corporate debtors because it provides legal rules for them.I state that it is obviously in need of studying on the position and effect of the legal regime of disqualification of corporate directors.We can educe several suggestions from the corporate scandals of companies in Western countries,one of which is that in the process of the rights expanding of corporate directors,the progress of corporate inherent paradoxy constitutes the ultimate causation and contents.Thus,the legal regime of disqualification of corporate directors is an important component of corporate governance, and its reform is equally important.The setting up and strengthen of legal regime of disqualification of corporate directors may be an effective way to resolve current issues in corporate governance.I indicate that the tendency of the legal regime of disqualification of corporate directors is to strengthen on the whole which constitutes an innovation of current study.We should focus on legal reform of the legal regime of disqualification of corporate directors in the world.In China,under the background of economic transformation,to strengthen regulation is to dominate the whole process of the reform of the legal regime of disqualification of corporate directors.In this view,although to relieve regulation is an important aspect of China's company law reform,it is equally important to strengthen the legal regime of disqualification of corporate directors.Base on these analysis,I put forward that the setting up of the legal regime of disqualification of corporate directors which is mainly to resolve China's corporate governance should pay attention to systematic consistence.We should establish an system of statutory information publicity of the legal regime of disqualification of corporate directors and strengthen the liability of corporate directors,meanwhile provide relieves for breaching of legal rules.To regulate directors as corporate controllers is eternal thesis of corporate law.In China,to transplanting the institution of disqualification of directors is a long term task.