Listed Companies In Foreign Illegal Guarantee

External guarantee of company, one important problem often encountered in business management, is the term for a company's activity offering its guarantee to the third party without the warrantor's debt with its own assets or credit. In market economy, it is a common way of financing guarantee for average business. In the meantime it is also a natural phenomenon advocated in the law of guarantee. If handled properly, it can promote financing and commodity circulation thereby to boost economy. However, the company takes some legal risks which may be transformed into tangible debts and make the stake-holder a stock-holder to have influences, directly or indirectly, on the creditors of the company. Therefore, it is necessary to standardize external guarantee of a company so as to enhance the public companies'normal running and management.A general view at other countries and regions'legal regulations on companies'shows that some are endowed with full rights to external guarantee believing it is the company's privilege for autonomous running; some are not. A few companies are rid of the right. In most cases, it is the right granted with limitation, which is the mode our country has adopted.By far the laws and regulations on public companies in our country, for various reasons, have not completely found a solution to the problem of violation, which embodies the superiority of the guarantee system. The thesis firstly focuses on the summary of external guarantee in our country, pointing out that a company's guarantee and a company's external guarantee have some connections and distinctions as well as classifies the external guarantee of a company. Secondly, it elaborates on the public companies'status quo as well as the internal and external causes for the guarantee behaviors. Finally, it sorts out and summarizes the regulations by the law and stock exchange to find out the weak points and put forward my humble proposal how to perfect them.