Legislative Restriction Of Company Reinvestment

China in 2005 through amendments to the "Company Law", in turn the question of investment, the abolition of the company's ratio of investment to investment restrictions and the expansion of the company's investments in the target company to the investment decision-making power by the company's charter stipulates that the realization of the investment companies to switch to self-government. Values from the efficiency point of view, the company invested a great degree of autonomy of the progress, and is conducive to the company's diversified operations and large-scale effect, the promotion of the company bigger and stronger, to seek more benefits. However, the investment companies to switch to self-government will also have a series of drawbacks, our existing legal system and regulation can not be a good investment to many problems, the new "Company Law" adopted by the existence of self-government investments may be harming the interests of small shareholders and defects in the interests of creditors, thereby endangering the idea of free competition in the market. Therefore, we must invest in the company to reasonable restrictions, it can encourage investment, while protecting minority shareholders and creditors. The dissertation contains four parts:The first part is on the company to the investment restrictions of the need for analysis. Investment companies to switch to self-government and corporate stakeholders are in conflict to protect the interests of the company to invest in self-government with social and public interests of the conflict, the balance of interests should be used as investment companies to switch to the Legislative Council values the company to invest in reasonable restrictions to both the development of economies of scale, the expansion of capital utilization, while protecting public interests and corporate interests of stakeholders.The second part is about the investment company and to limit the scope of the discussion. New "Company Law" to expand the company's investment targets is extended to include all corporate, which is in line with international trends and social development in line with China's national conditions. New "Company Law" should be further relaxation of companies to switch to the possibility of investing in the partnership.The third part is about to invest in the company's investment limit restrictions."Company Law" of the investment companies to switch from the restrictions on the amount of experience is not limited to changes, but does not limit the practice of security has an impac on the ecnomy. The amoun of investment necessary to reasonable restriction .Common law countrie limit investment to adop a more lenent requirement can not be separated from its specific institutional environment. Investment in civil law countries limit the amount to adopt a more cautious approach, the amount of investment restrictions, and disclosure of information, comprehensive restrictions limit the right to vote. China's "Company Law" should be the amount of investments carried out a comprehensive restrictions on differential treatment. China's "Company Law" should be the amount of investments carried out a comprehensive restrictions on differential treatment.The fourth part of the company's investment decision-making mechanism to limit. Restrictions on shareholder voting rights at stake is the national legal practice. China's new "Companies Act" the right to vote, restrictions on the number of listed companies is the lack of parent and subsidiary company formed to invest in the regulation. New "Company Law" should be further investment on the transfer restrictions under the shareholders the right to vote to improve. The interests of minority shareholders that the relief mechanism is a mechanism to limit the investment decision-making through information disclosure system, the right to share buy-back request system and the system of the subrogation right of restrictions to protect the interests of minority shareholders.The last part of the investment companies to switch on the issue of monopoly in the formation of the restrictions from the Company Law. Companies to switch to the formation of investment is a way of monopoly."Anti-monopoly law," the company's monopoly on the conduct of the regulatory system, but within the Enterprise Group of monopolistic behavior are excluded from the "anti-monopoly law," the object outside the regulatory system."Company Law" should be denied legal personality of such a system of internal regulation of monopolistic behavior.