Deep Rock Doctrine Study

With the economic development, the relationship between the companies has been more and more complicated and different legal entities have formed a controlling relationship because of various reasons. They achieve their commercial schedule and also avoid legal responsibility on the principles of corporate independent responsibility and shareholder's limited responsibility which damage the relative's interest seriously and bring challenge to the traditional legal system. Thereafter, how to regulate this relationship in order to protect the relatives'interest becomes more and more important for us."Deep Rock"as a principle established in the American case law has great influences since it's foundation.It introduces the creation, definition, the development in English and American legal system countries and China and it's theory foundation in the first chapter. And then the writer addresses the necessity of bringing this rule into Company Law and it's importance in the protection of the creditor in the aspects that the traditional legal regulations is difficult in protecting the affiliate company's creditors and"Deep Rock"'s function in protecting the creditors in the second chapter. Then in the third chapter, the writer analyses the difficulties when we bring in this principle and makes some advices, in which the ratification level of affiliate companies and judgment level of the associate transaction fairness have been stated in details.