Reinvestment Legal Issues

Corporation reinvestment is a kind of operation of company,but also a important problem that national "Company Law" focuses on. It has two impacts:on the one hand,companies can expand scale and saving transaction costs,improve their market competitiveness,but will cause capital inflated,for example,corporate governance and other structural imbalance negative impacts.Therefore,how to regulate the company reinvestment well,eliminate the negative consequences and make it do good for the companies and social services are the target of "Company Law" legislation. Through analysis of the basic legal issues of corporation reinvestment,discussing the main strategies of other country's legislation and analyzing and exploring our Iegislation,then raise legislative proposals to improve China's reinvestment legislation.There are three parts in this paper including the introduction,the main body and conclusion. The main body mostly expresses following issues:First,the basical leagal problems of coporation reinvestment. Including the concept,legal characteristics,basical classification and implications of coporation reinvestment. By analyzing the characteristics of coporation reinvestment and the positive and negative impacts brought about by it, increase awareness to the theoretical depth,providing theoretical support to raise perfect proposals to legislation and making it more reasonable.Second,other country's legislation evolution and principles of regulation about coporation reinvestment. Their legislatios are ealier than ours and there are many advanced experiences to reference. Analyzing these experiences can make our corporation reinvestment legislation merge with the international legal system and have More forward-looking.Third,the legislative process of China's corporation reinvestment. This section includes two issues:First,China's "Company Law" promulgated in 1993 about the corporation reinvestment legislation.Second,"Company Law" promulgated in 2005 about the coporation reinvestment legislation and its important changes on it.Recognizing the state of legislation can help us targeted to make more reasonable and practical legislative proposals.Fourth,legislative proposals to improve corporation reinvestment. Improving the corporate lifting veil;Invoking deep stock doctrine; Improve information disclosure system;Norms related enterprises and so on.Researching reinvestment behavior has a certain theoretical and practical significance. Our continuous study will make the reinvestment legislation more reasonable.