Research On Legal System Of Company Investment

The Law of Corporations of the modification cuts down the control of the corporations, given the right of the company and the independence management of investors, the chapter of the investment in the new The Law of Corporations gives expression to this principle .But, when the company and investors can decide a company and investment on theirs own , the companies may violate the benefits of other creditors, persons or enterprises ,so how the companies can be specified by legislation and judicial process in the area of investment is very important ,it is benefit for easing or removing the disadvantage of company investments.For the investment of the companies, investment is a kind of behavior that the companies purpose to earn money, the companies invest other business enterprises. The most important problem is whether the companies make money as purpose or not. According to the consideration of legislation, the investment of companies should be a kind of right investment, we should overcome the shortcomings of the investment and analyze investment in economic aspect, a company can through an investment use the company funds, technique...etc. of the company. Expediting the circulation of the captain to earn money. The companies will develop in special field and unification. Then the Chinese companies can compete with the western multinational companies in open market. The flaws of the investment of companies include the surface layer irregularity of the investment and deep irregularity, the surface layer irregularity of the investment is mainly expressed in the capital to falsely result to economic appearance and confusion, the third person without the realization of the companies which invest in other companies carry on bargain with this companies, his or her benefits will probably be subjected to damages. The company deep irregularity of the investment is lying in the rightness the investment to be made use of, the companies will violate the rights of another company in wrong way. The main performance through the control of power that the investment obtains his company , to make use of the control of his company to strive the benefit in this process, the small shareholders, creditors and other companies which are invested may be subjected to damage very much.Investors invest to establish a company, hoping the funds can be increased and the company acquires the ownership of funds, the companies deal with their properties, the shareholders can invest and obtain the shares, the company obtains the ownership of the company. The company can freely deal with the problems throw in part of or all capitals to another company. Because the rights compulsory duties, each right and obligation should be equal, the company can't with evil intent make use of various methods to make legal rights to sink in to liquidate of danger. When a company make use of investment to become a shareholder or big shareholder to control his company or may invest another company very much, according to economic benefits and more larger benefits than small shareholder in regardless of other shareholders in this company , the company law should provide protection to these minority communities in fair worth. Equity and efficiency are any social legal systems pursue and support to be very important value target, for investment law system, how does the company choose between equity and efficiency .More reasonable way is that our country should study from the company law of west nation, we should give the company freedom and make company can get autonomy, and make a decision according to the need of variety and oneself in market. In the same time, the law wants to medium small shareholders and the rights of the creditors in advance to protect and help the weeks. after damages the small shareholders will obtain judicial succor.On the provision of the investment , old The Law of Corporations use property as cardinal number and 50% restrictions , the rules are short of protecting creditors'a benefits to be first lawmaking purpose, and because of lack maneuverability, some companies escape from this rules of law. New The Law of Corporations Article 15 formulate that the restriction which cancels the company investment quantity, changing the rule by the constitution of company, this more direct body appears the pursue of capital benefit disposition of capital, and also built a terrace for the companies, so the shareholders who can make decision on their own. For investment of provision, new The Law of Corporations cancel the corpus of unlimited liability.According to the legal right of creditor and the company and its investor, The Law of Corporations should not make a restriction to investment. For the shortcomings that the investment brings with, we shouldn't in brief solve the problems in restriction of investment, because investment is the key point for a company. We should give the freedom to the companies to carry on investments, and the law should build up the establishment of other systems in the company law with perfecting the irregularity of investment, to guarantee the benefits of other related benefits corpuses. First, from the investigation of protection company creditor benefits, The Law of Corporations should build up announces which a system standard a company an investment, in order to prevent companies to trade in dark or be deceived, the company will correctly choose ample information . If the parent company make use of own domination and control position in justly transfer the property or pass on risk toward the subsidiary, to violate the benefits of subsidiary creditor, so the creditor of subsidiary can deny principle to protect its own legal rights with the company law personality. Second, if the small shareholders'benefits investigated from the protection company, the company law should perfect accumulation vote system to medium the succor of small shareholders'right in the way of voting, for the small shareholders can participate a company in management and the board of directors will make decision to protect the rights of small shareholders. The rights which limit big shareholders with perfect and independent board director's system. From the investigation of protection company benefits, we should recommend the damage theory of the civil law in The Law of Corporations to promote the system of investment, protect the small shareholders'legal rights and prevent the damage and shortcomings from investment, if the companies are violated, in the certain condition, the companies can claim to investment company infringement to compensate the damage of companies.