Our Reinvestment Legal Issues And Legislative

Corporation reinvestment like a double-edged sword:on one hand, companies can expand scale operation, dispersive the risk of management and improve their market competitiveness; on the other hand, corporation reinvestment trigger capital virtually increased, which result in the imbalance of the structure of corporate governance and harming the benefits of small shareholders and creditors ,and so on. In the legislation, the issue of corporation reinvestment has been paid attention to in different countries'"Company Law". Companies'reinvestment can achieve the maximum benefits of the company. Countries' legislation attitudes towards the system of corporate reinvestment have been less strict, so are the attitudes to our Company Law. The newly revised Company Law of our country has abolished the strict restriction to corporate reinvestment. It is the great progress of corporate legislation, but the regulation of corporation reinvestment system is too simple; therefore, it's necessary to continue research the corporate reinvestment system.The text has three chapters:In the first chapter summaries general problems of the corporation reinvestment, which explore the reinvestment's concept feature and so on, mainly introduces the strengths and weaknesses of corporation reinvestment.The second chapter introduces our corporation reinvestment's regulations and analysis of main legal problems, which point out the different provisions of reinvestment between old and newly revised Company Law, then labor the legal validity of reinvestment's procedure and entity.The third chapter introduces our corporation reinvestment's legal regulation and improvement. It suggests that China should introduce the"deep stock doctrine", improve the 1ifting the veil of the corporation and the disclosure system of information, control parent company transfer risk to subsidiary and strict limit the proportion of cross-shareholdings and voting rights. Finally, the author puts forward legislative proposals which improve reinvestment's procedure and legal relief of improper reinvestment.