On Researching The Legal System Of Corporate Donation From The View Of Protecitng The Interesting Of Shareholders

It is significant that the company plays an outstanding role in the prosperity of marketeconomy. Pursuing the interests is the nature of the company. But as an important member ofthe society, it which occupying much resources of the society, should bear a responsibility toimprove social welfare. Most companies make the company donation as one of the ways tofulfill society responsibilities, and benefit a lot from it. On the one hand, it establishing a goodcorporate image, enhancing the brand of its products; on the other hand, narrowing the gapbetween the rich and the poor, promoting the harmonious development of society, as well asachieving the win-win situation of the company and society. According to the stakeholdertheory, the company donation involving interests of many stakeholders, such as shareholders,employees, creditors, the donatee, the Government and so on. And the most important is toprotect the legal rights and interests of shareholders. As the investors, the shareholders are thereal right holders of the company. Therefore, the key objective of the company is to maximizethe interests of them. However,the company donation must inevitably lead an reduction on itsassets, which not meeting the short-term goals of the shareholder’s. This paper is intended toanalyse the status of company donation in the legislation and the practice, so as to give my allto protect legitimate rights and interests of shareholders better.The paper can be divided into five parts, and the main idea is as follows:The first part is an overview of the company donation. It define own characteristics ofcompany donation. It define own characteristics of company donation, by elaborating thecharacteristics of company donation, by elaborating the characteristics of gift, and has anoverview of connotation, classification, legal characteristics and significance of the companydonation with the tone of the development of the concept of donation.The second part is the comparison between company donations and company-relatedbehaviors. By analyzing the probability damage to shareholders’ interests caused by companysub-investment and corporation guarantee behavior, it is intended to confirm the inevitabilitydamage to the interests of shareholders caused by company donation.The third part is balancing the legal interest of corporate donation. By elaboratinginterest conflicts between the company and society,the company and the shareholders, it is tomake sure that the company should make the profit first and the fulfill their socialresponsibility in order to balance the interest between shareholders and companies.The fourth part introduces the reasons of the imbalance of legal interest. The first is thelack of legal regulation about company donation; the second is a lot of improper donationbehaviors, for the lack of philosophy of company donation and fiduciary duties of companydirectors in practice. The fifth part, the author mainly discusses the reconstruction of the legal principles andspecific system of company donation in the view of shareholders’ equity. Firstly, establishingthe basic principles of the compony donation, such as voluntary principle, articles ofassociation autonomy principle, the principle of open information, which provide the generalguidelines for the company donation. Secondly, improving the protection of the legal rights ofthe shareholders, such as the improvements of the company donation’s decision mechanism,restriction mechanism, supervision mechanism, and judicial remedy of shareholder equity.