Study On The Legal Issues Of Dormant Investment In Limited Corporation

The matters of Dormant Investment appear frequently in legal practice. The SupremeCourt published the third stipulation on the Company Law in2011. In this stipulation,there are some special articles about Dormant Investment. And it affirms that the rights ofactual investor should be protected by law. So, on the base of this stipulation, we can studyon this issue further. In this dissertation, writer analyses the contract of dormant investment.When the contract is invalid, how to do with the interests between the actual investor andthe stockholder in name. And when the contract is valid, what’s the nature of it. After all,writer tries to solve the matters of dormant investment with Trusts.This dissertation is made up of three parts: preface, text and conclusion. And the textincludes three chapters.In the first chapter, it briefly introduced the definition, the origin and the legalcharacters of dormant investment. Besides that, it compared dormant investment with someother relevant conceptions. This part makes the bases of the whole text.In the second chapter, it studied on the current status of dormant investment. Itintroduced the status in common law and the status in civil law. And then, it concluded theregulations in China law and pointed some issues.In the third chapter, it analyzed legal relationship of dormant investment. This chapteris the core part of the text. This part concerned on the contract itself. When the contractwill be invalid? How to do with it? And when it’s valid, what’s the nature of it, agency ortrust?In the fourth chapter, it proposed the solution of the matters of dormant investmentwith the theory of trust. It introduced the definition, the origin and the legal characters oftrust. And there is some connection between dormant investment and trust. At the end, ittried to solve the matters with the theory of trust.In conclusion, when we try to solve the matters with the theory of trust, it doesn’tmean just applying the trust law and the company law at the same time. We should mix them together and get rid of the conflicts. Through this dissertation, writer wants topropose a new thought of solving matters of dormant investment.