A Study On The Issues Of The Disgorgement

Company Law and Security Law stipulate that the company can useits disgorgement in special cases. However, both of the laws haveshort-comings in the regulation of the disgorgement. These short-comingswill cause difficulties to the performance of the disgorgement and judicialpractices. So it is necessary to research the legal issues of thedisgorgement systematically.Through the research method of explanation, the author analyses thejurisprudence, legislation and performance of the disgorgement bases onthe legislation on the disgorgement in America, Japan, Taiwan district andChina' practices and points out the flaws of the disgorgement andprovides suggestions to improve it. The beneficiary should be introducedinto the subject of the regulation on the disgorgement. While in the use ofthe disgorgement, the board of supervisors should have the right to usethe disgorgement besides the board of directors. When it comes to thesubject of short-swing trading, one-side-theory should be used to thedirectors, supervisors and senior officers. Two-side-theory should be usedto shareholders. The short-swing trading should be regarded as cash tradeand the benefits must be disgorged into the company. Naturally, thedisgorgement is the right of information and its deadline is one year.