On Legal Regulation Of Business Transfer

In recent years, along with the growing depth of the innovation of the system of the property right of the Company, the trading market of the property right of the Company has gradually formed. Business Transfer as a form of the innovation of the system of the property right of the Company has widely used in small and medium enterprises (SMEs). Business Transfer or Asset Acquisition is a kind of act in which a business,as an organism sells all or part of its main property to others by means of contracts.Business Transfer is also an important form of the Company's Reorganization. The Company Law shall set the Business Transfer system. In the Business Transfer exchange, the direct result of the exchange is the asset of the Vendor Company transferred to the purchaser; the indirect result is the Vendor Company stopping business, excising liquidation and finally losing the qualification of the Company because of a sale of assets. One of the important characteristics is that the purchaser shall not bear the debts of the Vendor Company. Such that may satisfy the need of the Company which only purchases the assets, and at the same time it makes a clear distinction between the Business Transfer and the Company's Merger. In the course of the Business Transfer, its content involves obligatory right and debt,prohibitory rules against competition ,labor contract and anti-monopoly as wel1. Thanks to the loss of the Business Transfer in our current law, there are many factors which are not canonical and legitimate in the cause of the Business Transfer so as to bring additional blindness and disputation.