Study On Chinese Prevention Risk System Of One-man Company

One-man limited liability companies, on the whole, come through denying, conditional affirming, and completely recognizing in the process of corporate legislation in all nations & areas of the world. After fully preparing, studying & discussing, the National People's Congress Standing Committee approved the Company Law in October27, 2005. The most outstanding change was admitting the system of one-man company, and regulated & restricted it.The establishment of one-man company system helps to boost the investors' enthusiasm, develop & perfect corporate institutions, and promote the market economic progress. It can be utterly regarded as an important breakthrough with a great many benefits in the corporate legislation; however, the risks one-man companies bring also can't be ignored. If one-man companies function into the full play in the market economy, they may bring more & more hazards to creditors. In case of without well regulation & restriction, they are likely to damage corporate the interests of creditors & the public, and even endanger the entire economic order. Although some prevention risk systems has been established while one-man company system was planning in the Company Law, any new law institution, will experience the course of emerging, developing & perfecting without expectation. Therefore, it's very necessary to perfect Chinese prevention risk system of one-man company, in order to evade the risks to the great extent which one-man companies bring in practice.The paper includes three parts. The first part, mainly from the point of view of legal characteristics of one-man company, emphasizes to analyze several reasons why one-man company's risk produces, and illustrates the main representation forms of one-man company's risk. In the second part, it firstly analyzes the present situation of one-man company's risk control design in the lately-amended Company Law in China. Secondly, it compares Sino-foreign prevention risk systems of one-man company from the angel of the corporate registration capital system & public announcement system, etc., and then points out the primary existing problems in our one-man company prevention risk system. In the third part, on the basis of former analysis & comparison, the paper puts forward some suggestions on perfecting Chinese one-man company prevention risk system, in order to promote this new company form healthy development.