Establishment Of The Company Legal Issues

Corporation, as the most active subject in market economy activities, plays an important role on Chinese socialist market economy. However, corporation can not be established in one move, it takes a long and complex process. The association, which happened in the course of establishing, is called the establishing corporation in China academic circle. There are limited special regulations for establishing corporation (the predecessor of corporation), although national laws have been going perfect. Then, it results in lacking of laws and regulations to solve legal conflicts in the course of establishing corporation. In addition, the updated Corporation Law (2005 version) just stipulates the issues occurred in establishing corporation on the aspect of responsibilities, it is far enough to solve complex and realistic issues.This paper works on the issue which came up from one case, by studying the concept, legal attributes and legal liabilities of establishing corporation, then attempts to solve the issues step by step. In addition, the paper gives several suggestions for Chinese legislation after comparing the world legislations, legal precedent and Chinese courts'points.