On Applying Denial Of A Corporation's Personality To The Financial Holding Company

How to apply for the system of denial of a corporation's personality is emphasized in the law educational world and the practical realm. Because the essence of denial of a corporation's personality is denial of the shareholder limited liability in the specific situation, denial of a corporation's personality has the function balancing the corporate personality and the shareholder limited liability. In 2005, the basic principle of denial of a corporation's personality has been established in 20th and 64th of our "The Corporate Law". According to legislative technique, the content of 20th and 64th is simple very highly. This has carried on the possibility concreting the act in practice. Then it is a possibility to concrete the act in the special type company. For operating finance, at applying denial of a corporation's personality to it ,the financial holding company is different with common holding company greatly. These different mainly display the premise of applying denial of a corporation's personality to the financial holding company, and the behavior that the financial holding company abuses personality of the subordinate company. That is to say, we must carry on concreting the act in the financial holding company's management. In order to practicing the goal, it is the more reasonable way to concrete the act by special law of the financial holding company. Then the five legal matters should be provide by special law of the financial holding company. Fist, the opportunity of applying denial of a corporation's personality to the financial holding company is on the immediate damage compensate. Second, determining obligee and duty one. Third, determining the behavior that the financial holding company abuses personality of the subordinate company. Forth, establishing the threshold test on evidence. Fifth, administrative department decide on applying denial of a corporation's personality to the financial holding company.