Legal Issues Of Corporate Guarantee

Emerged with the development of corporate institutions, corporate guarantee has played an important role in the management of corporation for a long time. Under the market economy, it can significantly improve the financing capacity and credit force of the corporation. What's more, it provides opportunities of business development to the company and is an indispensible way for the development of the corporation. Although the positive role of corporate guarantee to the corporation is tremendous, the drawback is also obvious, as it may bring equivalent impact to the benefits of marketing, corporate shareholders and creditors. Thus, corporate guarantee must exist under supervision so as to enhance the autonomy and activity of the corporate, and to avoid the possible interest risk of the corporate.The concept and classification of corporate guarantee is introduced in the first part of the essay, then the drawbacks and significance of corporate guarantee is analyzed theoretically, which establishes a massy theoretical foundation to the intensive study of the following part of the paper. At the same time, it enables the readers to get a deeper understanding from the view of value for the harm brought to company by corporate guarantee and the necessity of corporate guarantee, without which there will be no modern complete corporate regulations.In the second part of the paper, the content of each composition of corporate guarantee is introduced, and the main body as well as the judgment of the improving of corporate profit principle is analyzed in the entity. For the procedure, the legal rules, the procedure limitations of articles of incorporation to corporate guarantee and public principle of corporate guarantee are analyzed.In the third part, we first introduce the development of corporate guarantee regulation and the briefly depict the three classic model of modern corporate guarantee. The corporate guarantees in America, England and Taiwan district of our country represent the modern worldwide companies'different attitudes towards corporate guarantee. Each system suits perfect with its cisborder social condition, which has a lot of valuable prospects to us.As to the fourth part, we first briefly introduce the modern condition of corporate guarantee of our country to depict a general map of corporate guarantee regulation. Then the shortages of our modern corporate guarantee regulation was analyzed in detail from the violation of and the effectiveness of corporate guarantee of articles of incorporation. The effectiveness of illegal connected guarantee is not to be admitted, so the resultant responsibility taken should be ascribed to the specific person. While to the corporate guarantee that violates the articles of incorporation, the effectiveness will be generally evaluated according to "Promoting profit standards". On the other hand, by means of shareholder litigation can the illegal guarantees'effectiveness be denied. And at the end of this paper, some perfection advices to the corporate guarantee of our country are put forward as to make up the negative parts of our present laws in order to build our corporate guarantee legislation system.