The Legal Regulations Of Corporate Donation

Corporate donation is a behavior that the corporation donated its legal assets,income to a third person for free in their own name, Our legislators and corporate lawscholars has not taken attention of the relevant legal regulation for a long time, Thereis no specific legislations in China, However, the corporate donation is particular, andnot can be entirely resolved by the general rules of donation, The event of Vankedonation for Wenchuan Earthquake reflected many legal problems of the corporatedonation, The donation may directly reduce corporations’ profits, and thus affect theCorporations ’ normal operations, and indirectly against the interests of theshareholders, Individual directors are also likely to be for personal gain, It will alsocause that the shareholders do not trust the directors, From the perspective of creditors,the corporations bear their debts and is unable to gain but still do the donation, willheart creditors’ rights,This paper mainly discusses this question from the following aspects: First is anoverview of the legal characteristics of the corporate donation, Second, summarizedcompare the corporate donation’s legal regulations of United States, Japan and China,as the background to give the proposal of our country donation, Third, discuss therelated interest conflicts of corporate donation and finding the problems of the way tosolve the interest conflicts, And at last, give the proposals of the way to completecorporate donation legal regulations, In my opinion, our legal regulations of corporate donation are still need to beimproved, First of all, it should be determined in Law in Chinese corporate law andclear the rights and obligations of the corporation in corporate donation, Secondly, weshould modify the Enterprise Income Tax Law to increase the tax-free proportion andwiden the scope of tax exemption, Again, our corporate law should determine thecorporate donation decision-making power owner is the shareholders’ general meetingor the board of directors, Finally, we should improve the corporate law system tosolve the problems of agency costs of directors and the protection of the rights ofthe shareholders and creditors.