Research On The Improper Control Of Company

The controlling power of company is the core issue in corporate governance. It is the power to control, and dispose the company's economic resource and to make decision on the business operation of the company. The controlling power of company is essential to the development of company and interest distribution system. Therefore, relative interest-holders take it as the object in company.It is a serious problem that he shareholder, actual controller, directors and officers of company tend to utilize the controlling right to trespass the source of the company, impair the legal interest of the company, shareholders and other stakeholders so as to obtain illegal interest for themselves in the corporate governance nowadays. In fact, the above-mentioned act constitutes improper control of company. The damages caused by improper control should be compensated by the wrongdoer. There are some remedies for the damaged parties. The judicial remedies include the rule of lifting the veil of the company, shareholder direct suit and shareholder representative suit. The legal liabilities of the wrongdoer include the liability to the company, to the shareholder and the stakeholders of the company. The liability principle should rely on the mistake of the wrongdoer. The wrongdoer should undertake the liability provided that there is (are) mistake(s) or mistake(s) concluded conducted by the wrongdoer.