On Several Legal Problems Of Companies In Establishment

The establishment of the company is not so fast. Which must need go through aslowly process. First, some people want to set up the company, so they need make aagreement about the company, at the same time, they also must provide the money forthe company and propose the name of the company. Before the company established,the promoters also make a lot of contacts with the third parties, such as: the laborscontract, the trade contract about materials the loan contract with the bank. Will wesign the contracts with others in the name of the promoters or the company? Whowill be responsible for the contract? How should we regulate the behaviors in order toprotect both the interest of the promoters and the company? These questions areworthy of our reflection. Indeed some issues come out Supreme People’s Court on theapplication of<Companies Act People’s Republic of China>Provisions on SeveralIssues(three)"(hereinafter referred to as "The provisions") was issued.,which filledthegaps inthe Act about liabilityprovisionson the Establishment ofthecompany insome extent. However, theydid not make effectivelyregulate about the ability of theestablishment of the company. Which need improved fatherly.The first part of this article explains the concept and how to define the establishmentof the company from the defined and characterized in terms of the company, thesecond part of the article explain the legal nature of the establishment of the companyin order to elaborate the legal status of the company. The third part illustrate theestablishment of the company has a legal capacity and capability from establishmentof the civil aspect. The fourth part of the article explores the contact and differencebetween the two legal systems and the establishment of our company, combined withthe supreme law “provides three”. Finally, some comments and suggestions onimproving the establishment of the company are proposed in the hope that relevantlaws as soon as are made to resolve the conflict between the theory and the practiceabout the establishment of the company, which will protect the interest of the relevantpeople and uphold the authority of the law.