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Study On The Effect Of Corporate External Guarantee

Posted on:2015-02-22Degree:MasterType:Thesis
Country:ChinaCandidate:Y Y DuFull Text:PDF
GTID:2266330428963118Subject:Law
Abstract/Summary:PDF Full Text Request
With the development of the market economy, corporate guaranteesystem is playing an increasingly important role in the company’s businessactivities. It can not only enhance the company’s reputation and promotefinancial inclusion while protecting the achievement of creditors’ right,butalso promote the flow of free money between market operators. Therefore,legislations of different countries (regions) generally consider corporateguarantee as a fundamental right of companies. Unlike ordinary businessactivities, corporate guarantee not only involves the interests of itself, butalso involves the interests of the creditors and shareholders of the company.If misusing the capacity of corporate guarantee, it will not only harm theinterests of the relevant person, even be harmful to the public interests.Therefore, it is of vital importance to restrict the action of corporateguarantee while admitting the right to maintain the balance of interests. Theembodiment of the restriction is the identify of the effect of corporateguarantee.The first part describes the restrictions and development of corporateguarantee in traditional company law and three legislation modes in theworld. This paper will reveal the necessity of restricting corporateguarantee by analyzing the reasons for limiting corporate guarantee of thetraditional company law and the chosen value behind the differentlegislative models, then teases out the selective reference from the threemodes based on the unique circumstances of our country.The second part discusses the legislative process about corporateguarantee in China, then summarizes the main provisions of corporateguarantee of our current legislation. This paper will describe the problemsabout the appliance of article sixteen of existing "Company Law" and therelevant provisions by describing different judges of judicial practice, thus revealing the necessity of clarifying the effect of corporate externalguarantee under different circumstances.The third part deeply analyzes the theories which influence the effectof the corporate external guarantee. Firstly, this paper thinks the articles ofguarantee in the article of association can restrict outsiders and outsidershave the duty to observe relevant provisions. Secondly, this papers arguesthat article sixteen of “Company Law” must be observed, otherwise, it willinfluence the effect of corporate external guarantee. Based on the foregoinganalysis, this paper analyzes the effect of corporate external guaranteeunder different circumstances. At last, this paper provides some suggestionson legislation and judicial practice.
Keywords/Search Tags:effect of corporate external guarantee, effective norms, external effect of the article of association
PDF Full Text Request
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