On The Legal Arrangement Of Control Condition For Non-Capital Rights In FDI

Direct investment in host nation by Multinational Corporations (MNC) is the representative modality of FDI, by right of solid economic strength and other advantages, MNC has a good control on subsidiary companies and obtain excess interests, which main method include Capital and Non-Capital Rights control. The study on Capital Rights control of MNC has been lasted for many years, much opinions with special features was founded. But there was still little discussion on questions of Control Conditions of Non-Capital Rights and Law countermeasure. By studying the case of Nantong COSCO KHI Ship Engineering Co, ltd., through demonstrative research,this article focus on the nonfigurative advantages of international investment, after analyzing characteristic of different advantages and the function of rights distribution of corporate governance, considering the precondition of Non-Capital Rights control is Assets for Governance Avail. However, control rights exceed Capital Rights sometimes become outside the law because apparent unfair and monopolized position was abused. This article analysis more comprehensive scope on the principles for rights of governance corresponding to capital rights, Clarified that full assets shall include both capital and assets for governance avail, and endow Non-Capital Rights control with validity, otherwise, there would be no real equitableness and rationality for balance among investment, rights and responsibility. Besides, give host nation government an assume to regulate investment activities. Therefore, the writer's purpose is to give further research to condition, right and obligation, way and extent of Non-Capital Rights control, as well as law enforcement, lead the study of corporate governance to a high level.