Discussion On The Disregard Of One-man Corporation's Personality Of Our Country

The Corporate Law formally actualized on January 1, 2006 ordained two new systems: one-man corporation system and piercing the Corporation's Veil system. One-man corporation is that all of the company's shares or investment attributable to a single shareholder. Disregard of corporation's personality also known as"piercing the corporation's veil"or"lifting the veil of corporation"is a measure to prevent the abuse of an independent personality and protect the interests of company's creditors and social public interests, on the specific legal relationship of the particular facts and denied the company and its underlying shareholder independent personality and limited liability shareholders. The company's shareholders (including shareholders and corporate shareholders natural persons) are ordered to take responsibility of creditor's interest or the public interest, to achieve the target of impartiality, justice. The provisions of this two systems is great breakthroughs and progress of company law legislation. It plays a great role in promoting on the social and economic. China's current economic development situation needs legal recognition on the one-man company system. While the recognition of one-man company, a number of shortcomings will become apparent. The Corporate Law of our country stipulates Disregard of corporation's personality and Disregard of one-man corporation's personality. However, only 2 articles is not enough. So we must step up the research of foreign-related system and best practices and theories of its localization transformation.First part of this article is about the overview of China's one-person Ltd. It describes from the need of one-man company's development to a person's legal characteristics, the special one-man company. The second part compares the foreign disregard of one-man corporation's personality to Chinese disregard of one-man corporation's personality. Then it comes the shortages and the reasons. The third part is about judicial application of the specific issues, including the allocation of the burden of proof, properties confuse and other circumstances. Part IV is after the Second part and the third part,I make recommendations on related systems to solve the problems.