Study On Legal Issues Of Interrelated Guarantee Within Company Group

The company group interrelated guarantee, is referred specifically as a type ofinterrelated party transactions occurred in the company group between interrelatedparties. As a special type of associated transaction, who’s appearance is familiar with theevolution of traditional single company, and the developing of modern corporate system.Under the condition of market economy, company group interrelated guarantee is aneffective way to achieve financing and resource optimization within group. It is playingan important role on saving transaction costs and performing strong economies of scale.Anyway, company group interrelated guarantee is an inevitable and rational existence.Therefore, it is assertive for prohibiting or restricting simply, otherwise, the scope oflegal adjustment about company group interrelated guarantee should be the unfair ones.Within the group of companies, based on the control and affiliation or other economicrelationships, interrelated guarantee may become a way for controlling shareholders ormember companies to undermine the interests of affiliated companies, other minorityshareholders and creditors, by abusing limited responsibility or squandering interrelatedrelationships, all off these tend to triggering a variety of interests conflictions. In thiscase, this paper is based on the legal theory about company group interrelated guarantee,and combined with useful experience of the current research theories and legaladjustment rewarding company group interrelated guarantee. Oriented by interestsbalance, this article is formed by following five sections, to make an exploratory studyon how to achieve effective legal adjustment about company group interrelatedguarantee.Part one: Expounds the basic problems about company group interrelatedguarantee from a theoretical perspective. Including analysis comparatively aboutcompany group interrelated guarantee and general interrelated guarantee, from having alegal definition of the concept about company group and interrelated guarantee, aims tolay a theoretical foundation for the later discussion.Part two: From the rationality of existence and possible interests conflicts, thispaper makes a value judgments about group interrelated guarantee. Then, value-orientedby balancing of interests, analyses the necessary of legal regulation towards groupinterrelated guarantee, from its regulatory target and problemsThe third and fourth parts: First of all, thinks about the current regulatory situation and problems towards group interrelated guarantee by combining the relevantprovisions in "Company Law","Securities Law" and other concerning legislation in ourcountry. Then, makes a comparative study about company group and legal adjustmentof related transaction abroad. Combined with the former study, this article investigatesthe important implications of regulations, such as the "The Deep Rock Doctrine" and"Piercing the Corporate Veil", for improving security adjustment about groupinterrelated guarantee, which is based on the conclusion of extraterritorial regularexperience abroad.Part five: Finally, to the nucleus of interests balance, combined with extraterritorialregular experience, this paper considers about the legal path of improving legaladjustment towards group interrelated guarantee, by focusing on enhancing controlcompany’s fiduciary duties, having strict conduct regulation, improving accountabilitymechanisms and judicial relief remedies afterwards.