Discussing Legal Liability Of The Failure Of Company Set-up

Establishing company will have two results:success or failure. In the course of its establishment, there are various civil activities. But once the company can not be established, who will undertake the consequences of civil activities, this is the legal problems which is must be faced. In the process of establishing company, the style of company is establishing company, and initiators are executing organization in establishing company. When company personality can not be admitted, which liability will initiators be assumed for its behavior, and how liability will capital verification institution be undertaken for its false behavior, these are noteworthy. In the beginning, when we analyze these questions, we discuss company concept in the course of its establishment, the principle and style of company establishment. In the following, this paper introduces the reason of failure of company establishment and the concept of initiators. In the last, this paper describes the relationship of between the initiators and company in the process of company establishment, and legal position of capital verification institution. Under failure of company establishment, initiators responsibility includes of external and internal responsibility. Generally, the initiators shall be liable for breaking a contract breach, liability tort, etc. Company sponsors have a powerful position comparing company shares, in the company law in China, the initiators responsibility is in favor of safeguard social justice and social stability. In theory, the responsibility of verification institutions has the responsibility of breach of contract, tort liability, etc. China adopts theory of the right infringement responsibility principle. The liability of capital verification institution can not safeguard the benefit of creditors, and confuse itself liability. In the last, I give some advices about main part, forms, principles of responsibility in the process of failure of company establishment, and these are benefit to our country's legal system construction.