Study Of Legal Issues Concerning Company Donation From The Perspective Of Interest Balance

The basic proposition of this thesis is: Legal balance of interest conflicts incompany donation is to, under the guidance of corporate social responsibility theory (alsocalled stakeholder theory) and the premise of recognizing the profit-making attribute ofcompany, with the aim to balanced social benefits and the company interests, safeguardthe legitimate rights and interests of the company and its stockholders to the utmost, andachieve maximum interest balance of the uncompensated use of company property incompany donation.Traditional company law theory holds Principal-agent theory to companymanagement, adheres to the idea of “stockholders first” and believes the company’smanagement objective is the maximized interest of the owners or stockholders, and thatonly the management wielding its control on the basis of stockholders’ interest is theguarantee for effective company management. Under the influence of this perception,company donation is regarded as a conflicting action to company objectives and thusprohibited by law. As the economy progresses and the society develops, however,unbridled company profit-seeking brings a train of undesirable impacts on society, andcorporate social responsibility theory is born at the right moment, providing a basis forlegitimacy of company donation, following which the theory of company corporatecitizenship perfects the corporate social responsibility theory in that on the premise ofrecognizing the profit-making attribute of company, the company must, to the maximumextent, coordinate the interest of the outside shareholders other than that of thestockholders.At present company donation activities in our country have made great progresswith the scale of company donation repeating record highs and companies step by steptaking company donation as a company development strategy to give full play to theeconomic value and social value of company donation. However, company managementconcerns various interest groups whose respective represented interest is different fromand conflicting to each other all the time and since company donation is an action ofuncompensated company property transfer, it leads to reduced company property and tosome extent leaves the conflicting interests in the company assuming different featuresthus causing new conflicts. The interest conflicts and opposing tension brought up toeach shareholders of the company by company donation should not be overlooked. Therefore in the study of the legal issues concerning company donation, a variety ofinterest conflicts should be analyzed with the primary task of achieving interest balancebetween each shareholders of the company and unlimited to the domain of company law,studies on the realms of contract law, securities law, tax law etc. should be conducted.Establishing and improving related lawsuit and regulations, including the mechanisms ofdecision-making, information disclosure and tax incentives in company donation, puttingthe management of board of directors under the rules and regulations of law, and givingparticular shareholders the right of relief to reconcile the existing conflicts between socialbenefits, company interests and the interests of the principal parts in the company, ensureregular corporate operation and bring the positive effects of company donation into fullplay.