China One Man Company Current Situation And The Rule Of Law

The promulgation and implementation of the new Companies Act in recent years, China’s one-man company did have a great development experienced a blowout fromthe beginning of development, to the present set up the stage gradually rational.However, we also see that the one-man company in the rapid development of many problems, caused by the reflection of people’s. Where is the problem of one-man company, there is no way to be resolved? Attempting to resolve the problem is what I will to do in this article. I adopt a more theoretical analysis and comparative approach to identify problems, solve problems, poor wording, but also to please the teachers and students criticized the correction.The full paper is divided into four parts:The first chapter a brief introduction of one-man company. Focus on analysis of the characteristics of one-man company in order to understand the special features of the one-man company, limited liability company form of organization, and also to do some comparative studies. The second chapter analyzes China’s recognition of a company of reason, and one company’s current development status, so that readers can understand the general situation of China’s one-man company.The third chapter discussed from the perspective of corporate law and business registration administrative law suffered the plight of a person in the development of legal reasons. The fourth chapter discusses the two preceding chapters, analysis, five recommendations to solve the problem, can not say symptomatic, feasible, and only hope that the idea for the healthy development of the one-man company to provide some of their own immaturity. The following detailed description of each part:The first chapter begins with one company briefly introduced, including concepts, classifications, characteristics, focus test analysis of its characteristics, because it will help us to identify the advantages and disadvantages of this form of organization from the one-man company to analyze its governanceproblem. Secondly, the one-man company and personal owned enterprises, state-owned companies, foreign-owned enterprises, the enterprises of the three types of comparative studies, learn more about a person’s unique from this comparison. Again, a brief history and current status of the developed countries, a company of a few representative, know one company in the development of the countries in the world have experienced a tortuous journey, but has finally been recognized by most countries. I hope to be able to find something to learn from China in the course of development of the national companies in the developed market economies. Finally, the pros and cons of one-man company, further in-depth analysis of the advantages and disadvantages of one-man company in order to achieve the purpose of avoiding disadvantages.The second chapter first analyzes China’s Company Law to recognize the purpose of the one-man company, both theoretical feasibility, but also the need for reality, and the current development status. The new Company Law from the capital system, audit system, the registration system of notification of legal personality to deny the system of regulation on the one-man company. Section II belong to the highlights of this chapter. The first part of this section by some examples and data illustrate the achievements of the one-man company in China, and analyze the characteristics of the development of the one-man company is still in the formative years, most of the development of stabilization, but also in part due to credit problems or financing various reasons the development prospects of woeful, and finally there are some one-man company changed its form, singular shareholders into plural shareholders, the intention of the survival and development. The second section discusses some of the reasons for these problems in the one-man company, such as corporate governance structure in one:one company different from the traditional limited liability company is the sole shareholder. Shareholders of the only classical governance structure makes the shareholders——Board of Directors——Board of Supervisors three separate checks and balances in the traditional company lost the basis for the existence, replaced by a single shareholder to manipulate the shareholders, the Board of Directors or Board of Supervisors, and thus in the governance structurethere is a dilemma. Then there are the company’s credit status. Problems in the development of the company one very important reason is that: the company’s credit is in poor condition, the impact, of transaction security. One credit in poor condition both its internal problems, external credit industry.The third chapter from the point of view of the existing legal analysis of China’s one-man company encountered difficulties in the development, of legal reasons. The entire chapter is divided into two aspects:The first section examines the provisions of the Companies Act on the one-man company, have made provision in each analysis, which analyzes the content exist under the Companies Law drawbacks. For example, first the capital system. Our understanding of the financial system needs to be changed. Second, the accounting and auditing system. The company’s accounting fraud, audit distortion is quite prominent, in terms of the one-man company, the employed system of corporate accounting and auditing is not rigorous, the favoritism multiple accounting fraud phenomenon is mainly due. Third, the legal personality to deny the theory. China’s legal personality denied the legal use and lack of strong legislative support. Section II also examines both positive and negative on the one-man company in China’s industrial and commercial registration registration administrative law system. That is, our company registration publicity system. The participation of the government first thinking, our company registration, the public system a long time to pay attention to the nature of public law and contempt private law nature, so that the system is not well for the main players in the market transaction security and convenience services.Chapter IV according to many problems previously identified corporate governance, the governance recommendations. Both the institutional level and technical level. Divided into five areas:the first section to improve the corporate governance structure of one. Start with an internal governance structure grabbed, to rebuild its board of supervisors, but also to change the appointment system employed within the current accounting system for the external. Section II, a sound credit system of one-man company. Chapter III has found a one-man company credit problems, so this section is proposed to change the accounting supervision system and improve the social credit system. Section III enhance the operab.ility of piercing the corporate veil. Denial System is a company with limited liability limit, but if the judicial practice in the application of too much will erode investors’enthusiasm for investment is not conducive to economic development. Therefore, the application of the system to enhance its operab.ility. The fourth quarter of one-man company registration, the public system perfect. China’s one-man company registration publicity system development is lagging behind, not able to play the service function of their market transactions, therefore this section is given in other countries practices on the basis of a sound proposal. Section V perfect one-person company’s financial accounting supervision system. Modern corporate governance structure is gradually transformed, shareholders will be disadvantaged, increase in the regulatory functions of the accounting and auditing system, and thus to timely perfect the one-man company financial and accounting oversight regime to prevent accounting fraud.