On The One - Man Company

The difference between the one-man company and traditional company is the oneness of shareholder. The merit and shortcomings become very brilliance due to the particular investment structure of one-man company: the merit is that one-man company charms the investors and has low cost and high efficiency. Also, the shortcoming of that is lacks of inter obligatory policy, so the creditors are prone to be cheated and the security of the exchange is affected. Therefore, it becomes the popular legal question that how to use the merit and avoid the shortcomings, and make it not only expedite the investment but also guarantee the justice of exchange through effective criterion of this one-man company. The one-man company was acknowledged for the first time in the revised Companies Law of our country recently. So it has operation significance for reforming, consummating the Companies Law and expediting the normative and rational development of market economy through searching the form reason, operation characteristic and criterion methods of one-man company.