Study Of The Legal Issues Of One-man Company

One Person Limited company takes the merits of both the Exclusive Investment enterprises and Limited Liability companies. It can not only fulfill the stockholders' limited liability profits but also can let the shareholders control the business management of the company as these ordinary exclusive investment enterprises. This kind of symmetrical arrangement of ownship structure will greatly ensure the inspiration between the managers' behaviors and the profits of the company. It can also reduce the policy decision costs and coordination costs; which makes it the best organization form for the medium-size and small-size companies. Traditional companies take the association as its basic feature and the foundation of independence personality and shareholders' limited liability is the division of the companies' own property and shareholders' property. But One Person Limited company has the definite control power of the company makes it easy to get involved in the abuse of independent personality system and limited liability system. It also gets the company into trouble in holding its own property, effective management and controlling balance. This makes the denial legal person system which can solve the problems abusing the power could be world widely used. And although the One Person Limited company lacks the power of controlling balance, it still has the person putting up capitals, workers and staff members and creditors. Under the guidance of human resource theory and relevant theories, it can still be contributed to a multiple-benefit principals' structure.