Company Reinvestment Limit Comparison Research

Company reinvestment had two changes in the revised Company Law in2005.The first is the relaxation of reinvestment objects,and then the cancellation of reinvestment quota limit. Changes in this legislation is a significant step forward, which adapted to the objective needs of society.However,there are many deficiencies in the company reinvestment legislation compared with other countries and areas whose legal system is of integrity.I Try to explore the loss and vulnerability of our reinvestment limits and put forward advices through comparison other extraterrestrial measures and legislation of major reinvestment limits.This article is divided into six chapters.The first chapter is the Investment Overview,which first defined the concept of reinvestment,then introduced the formation of reinvestment in the common law countries and the status of reinvestment in the civil law countries.Finally,I discussed the drawbacks of the reinvestment and the inevitability to limit reinvestment.The second chapter Legal Limits of Reinvestment Object,I first consider legal limit of Britain and the United States,come to the conclusion that common law countries don’t limit the object.Then I examine Japan and Taiwan Japan had cancelled the limit of reinvestment object in the newly revised Company Law.And Taiwan remains the provisions of limiting reinvestment object.At1ast,I come to the conclusion that we should not limit reinvestment object.The third chapter Legal Limit of Reinvestment Quota.In this chapter,firstly,I introduced an important classification of reinvestment:one-way reinvestment and cross reinvestment.For one-way reinvestment,the quota is only restricted in some states of the United States.For cross reinvestment,most countries and areas have regulations,only differ on the specific amount.Secondly,I conclude that we should relax the limit on one-way reinvestment quota,and strictly limit the quota of cross reinvestment.The fourth chapter the Voting Rights Limits of Reinvestment-made shares.I discuss the voting rights limits in the United States,Taiwan,Japan,and conclude that we should introduce the voting rights limit mechanism. The voting rights of one-way reinvestment should not be limited, and that of cross reinvestment should be strictly limited.The fifth chapter Shareholders’Fiduciary Duty of reinvestment.I discuss the United States, and Britain’s controlling shareholder fiduciary duty and related regulatory measures and our provisions for the shareholders’ fiduciary duty.The sixth chapter the Principle of Piercing the Corporate Veil.I discuss the related legislation other the United States,Germany,Taiwan,and then proposed to improve the system of the principle of piercing the corporate veil.