On The Corporation In Preparation

The corporation in preparation (or called"the corporation in forming","the corporation in setting up") is a temporary organization that takes the corporation's establishment as the goal and makes some necessary preparing work.It is an absolutely necessary stage in preparing a corporation. The corporation is an importance subject in participating in various activities of modern society. Corporations in preparation exist extensively in social life and they frequently have legal relationship with other subjects. If the legal status of these corporations in preparation are not prescribed, it will not only leave large margin in the legal adjustment, but also make the legal relationship with other subject more complicated and increase the transaction costs, undermine the principle of benefits. Having an effective regulation on preparing corporation would make the corporation system perfect and sound, which deserves attention from law and academia. But so far there is not clear definition on the preparing corporation in the laws of China and the corporation in preparation has not been endued with the corporate entity status in civil law. "Corporate Law", which only makes relevant regulation on setting up incorporated company and mainly focuses on the regulation of sponsors, does not make any general principles on legal status and liability bearing of the corporation in preparation. In order to standardize corporation's behavior of setting up, solve the practical problem of the corporation in preparation, protect the interests of party and the public and improve the corporation's system, the civil law should make overall and concrete regulation on legal status and liability bearing of the corporation in preparation.At present, to the study of the corporation in preparation, the academia mainly concentrates on research of the company while setting up; the explanation of the corporation in preparation mainly appears in the works of civil law, it is less discussed in academic papers; the academic discussion of the corporation in...