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Study Of The Limited Liability System

Posted on:2006-07-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y L XiaFull Text:PDF
GTID:1116360155475874Subject:Political economy
Abstract/Summary:PDF Full Text Request
Efficient institutional arrangements are the source of economic growth, and the reasonable systems are the key to the development of a company. The Limited Liability System evolutes from the Unlimited Liability System and proves to be a more effective system replacing the original system or producing a new efficient one. It is an activity that the system-subject overcomes the limitation of the system itself and enlarges the institutional supply for the potential earnings.The Limited Liability System takes a dominant place as one of enterprise forms. It is the core evidence that enterprises are conceptualized as Limited Liability System. To do further study on the operating efficiency of the Limited Liability System is crucially important for the economic construction in China.Looking back to history, we can see Limited Liability System has experienced the following stages: no any basic principle → a single basic principle→dividing of the single basic principle. Its forms has changed as Limited Liability Limited Liability System → Piercing the veil of corporation →Adverse-piercing the veil of corporation. It shows that the institutional changes and creation are a continuous process. In this study, the author divided the developing stages and sorts out a clear the evolution locus of the Limited Liability System at different times both at home and in abroad.From the point of technological evolution, the Limited Liability System ongoing in the socialist countries was introduced from the capitalist countries, especially has the same roots with the continental law systems. By a horizontal comparison, the author integrates various theories, which are opposite to each other but being reasonable. Limited Liability System is analyzed on the ground of a wide cultural scope. It reveals the three system models of technical styles and the related social conditions and concludes that introducing freethinking and measurements is important for avoiding the stereotyped conclusion.In terms of methodological application, Law is a norm of "what should be exist", and Economics is narration of "what exists" . This Study, by methodological innovation, takes Limited Liability System as an endogenous stable result in the game programs of such fields as economy, society and politics, drawing the conclusion on the basis of reasonable analysis instead of "tool theory". As an efficient means of allocating the rights and obligations, Limited Liability System reflects the lawmaker's basic policy-thinking implicitly in any institutional arrangements. Usually, this kind of policy-thinking is unable to be explained through law. While adopting the methodology of law economics, it is significant for a legislation to reduce the blindness, improve serviceability and public awareness.Aiming at building fair and efficient institutional systems . With the development of modern market economy and hi-technology, people are faced to more risks in their economic activities. Investors in different fields need protection under the Limited Liability System. Thus it is necessarily important to design and establish efficient systems motivating the investors and accelerating the company's development.Designing efficient practical institutional arrangements . The social enterprises always take the path with lower risks, costs and taxes. The Limited Liability System matches this tendency.Suggesting some policy options for preventing the institutional risks of Limited Liability System . Learning new tendencies of Limited Liability System in different countries as modification of the ten percent funds for bankrupt terms , mandatory insurance programs, etc. Based on the Chinese situations, some policy options are suggested.Building the reasonable dynamic operating models of Limited Liability System . One partner's minimizing-cost choices could be conflicted with the other's choices. The reasonable institutional arrangements brings not only the short-term but also the long-term benefits for the business partners, moreover, it is a starting point for the better going of the relevant rules and regulations.Promoting the efficiency of Chinese legislation . Company is the core of modern enterprises, while limited liability is the "king rule" of company. This Study takes Limited liability as research subject and adopt empirical and law-economics analysis to reconstruct the limited liability system under the principle of fairness and efficiency. It will produce good social benefits for reducing the inherent conflicts, accelerating company's operation and the overall economic development in China.Integrating the conflicting but reasonable theories . Law codes are sourced from the accepted everyday common practical rules. The roles of a judge are to seek for solution mechanism, which is suitable to the willingness of the groups around him. The nature of limited Liability system makes it matches the environment of the rational people's assume. Thus, although seeming to be conflict, the continental law system and that of U.S.-Britain would actually reach the same goal by different routes and finally get common understanding . This Study is intended to make up such limitations as unfairness and low efficiency in both legislation and justice by comprehensive analysis on Limited Liability System.
Keywords/Search Tags:Limited Liability, System, Operation, Theory, Mechanism, Policy option
PDF Full Text Request
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