Discussion About Company Tendering Guarantee To Outside

The company guarantees to the outside may reduce company's capital, damage the interests of company shareholder and creditor, so people generally hold suspicious attitude to it. However, guarantee to the outside is the effective means to expand market, under the pressure of the market competition, the company has urgent need of realizing freedom of tendering guarantees to the outside. For evading risk, our country at present has adopted prohibitive regulation to prevent company from tendering guarantee for risky target, but this method produces little effect, this proves that the prohibition is unable to realize the purpose of controlling risk, will just impel the company to evade the law instead, and escape supervision. Combining with the legislation of some other countries and regions, we can adopt the standard of " substantially benefit "Company, which is much more flexible and more effective than prohibiting tendering guarantee to some target, certainly this will rely on other systems on company law to cooperate with it too. This text will come to discuss these mentioned problems from four following respects:First, the pros and cons analysis which the company assures to the outside. First of all, the company guarantees to the outside that may damage the interests of the company shareholder . The behavior that the company tenders guarantee is regards as what the company bears or has debts, but can't be discharged its debt by guarantor, these companies must discharge with its assets as assuring , undertake to assure responsibility, or there is actual debts that debts become the company, this certainly will cause the reduction of company's net assets , involve the original interests of other shareholders . Though once the shareholder invests one's own property in the company, lose the ownership to this property, and only enjoy shareholder's right, and bear limited responsibility to the corporation loan within the limit of its investment volume, namely in the assets debt not enough to discharge of the company, the shareholder needn't be responsible for ! But when the guarantee responsibility which the company should bear has already exceeded its assets that have had actually, though the shareholder needn't bear responsibility for the corporation loan again, here in fact!, not only the investment return expected of the shareholder can not be realized, even the shareholder will also be exhausted the assets invested of the company. In a sense, risk that company manage improperly is it is it bear to come by shareholder to remain finally. Secondly, the company guarantees to the outside that may damage the interests of the company creditor . Though the creditor is different from company shareholder , the realization of its creditor's rights does not change with change of company's wealth , namely the realization and repayment of creditor's rights are agreed on by the contract in advance. But this is only set up in a kind of assumption , that is that debtor's management state is good, it is enough to clear up the debt, and does not have situation of breaking a contract on purpose . And when the debtor fallsVIinto the financial crisis, the creditor faces the risk that creditor's rights can not be realized or can't be totally realized. Moreover, the company guarantees to the outside that may cause the market risk . The company tenders guarantee for others, should exercise within its ability range in principle, but in what a large limit can the law there is no company to tender guarantee to make the clear regulation at present, causing some companies to seek loopholes, the guarantee amount that they offered has far gone beyond their assets total value, even up to a few percent hundred. Unrestricted externally with the limited responsibility system property of the company like this to tender guarantee, debt roller chain that can entangle on the urgent market progressively ; But such an excess guarantee difficult to count and control, risk accumulate but nobody perceive in a large amount. Once take place dispute over o...