The Research On Legal Regulation Of China's One-man Company

With the development of modern market economy, people encounter with a higher risk while dealing with economic activities. Every investor hopes to be protected by limited liability. One-Man Company resulted from the development of market economy when the individual operator Who offered money made the proprietorship into a limited liability company or joint-investment form only for the purpose of pursuing fortune of the limited Liability, one-man company with unique features to meet the various needs of investors, so in reality the business world has plenty of room for development and vitality. But with its appealing features, the emergence of one-man company brings great challenges to the traditional corporation theories. One-man company started as instead of one. One-man company has been officially recognized since Salomon v Salomon Co. Ltd in United Kingdom in 1897. Now, it is the worldwide company legislation and practice trend to recognize the legal position of one-man company and regulate it in the height of corporation law.The 18th meeting of PRC National Congress Standing Committee passed the amendments ("Amendment") to "Company Law of PRC" on October 27th, 2005, and the new corporation law took effective on Jan. 1st, 2006. Compared with the company law of 1993, the new Company Law made a lot of changes. In the second section III of chapter, it made special regulations on a limited liability company. This new company law officially recognizes the legal status of one-man company, and primarily sets up the legal system of one-man company in China. It stimulates the enthusiasm of individual investment and promotes the development of private economy. Because of its disadvantages, it must be regulated in order to take the most advantages of one-man company.This paper adopts the method of comparative study, makes a thorough study on the legislation of the countries in the two legal system, from which summarizes the advanced legislative experience of other countries to provide examples for perfecting the legal system of one-man company in China. This paper tries to make a study on the reasonableness of the new corporation law regarding one-man company through systematically analyzing one-man company, and raises the suggestions of the author for the limitations the new company law has.This paper is made up by four parts. Chapter I is the general introduction of one-man company which introduces the concept, characteristics and classification of one-man company, and makes a detailed analysis of the inevitability of recognizing the legal position of one-man company. Chapter II analyzes the legal regulation of one-man company in the two legal system. Chapter III ,IV are the main parts of this paper. In chapter III, the author introduces the status of legislation in China, and points out the reasonableness of one-man company in new "Company Law". Chapter IV analyzes the shortcomings of the legislation for one-man company in new "Company Law", and raises the suggestions for its perfection...