Research On Guarantee Of Listed Companies From The Perspective Of Corporate Governance

The phenomenon of listed company provides guarantee for external corporations isvery common in capital market. Listed company is the best choice of acting as guarantorfor its high transparency in finance, operation and abundant capital. Nevertheless, thedevelopment of Chinese capital market is not mature, that lead to the business of externalguarantee is not very standardization. Since the beginning of the business of listedcompany’s external guarantee, it experiences two different periods. That is, the period ofcontrolling guarantee issues by big shareholders and the period of guarantee circle. Nomatter which period has caused indelible negative influence on listed company. Thus,many of them even trap into a prolonged predicament, struggle with illegal guaranteedisputes and litigation which had made a serious impact on companies normal operation,such as near the edge of been delisted. Listed company’s external guarantee trade hasbeautiful future, but faces challenges in short term. Such as, how to iron out currentproblems and how to prevent business risks.therefore, the practical extent has paid moreand more attention on listed company’s external guarantee. This paper will discuss listedcompany’s guarantee in the perspective of corporate governance.This paper consists of four chapters.The first chapter mainly discusses essential issues about company’s guarantee,including the origin, development and Function of the guarantee system. This partanalyses the different stipulation about external guarantee in old and new ChineseCompany Law, then introduces listed company external guarantee and its legal character,special legal provision.The second chapter roughly outlines the current situation, present hazard and chieflegal problems about Chinese listed company’s external guarantee business. On the basisof reviewing its development in the past years,this part utilizes examples and data toillustrate the existent problems and risks.The third chapter expounds the mutual relationship between corporate governancesystem and listed company’s external guarantee. This part analyses corporate governance system’s impaction on listed company’s external guarantee from internal and externalperspective. Then illustrate the inevitable relation between them in theoretically andpractically.The fourth chapter summaries the former three chapters’Content, gives out concreteprecautions of guarantee risks and seeks a more perfect settlement at legal level.