Research On The Business Entity Of The Mechanism Of Market Exiting

As the most essential part of economic entities, business entities start with the entry to business market for participating in the economy subject to the market access rules, and eventually exiting from the market mechanisms, due to the dissolution of companies, either active or passive, by the completion of required procedures, for instance, liquidation, cancellation of registration and others. Seen from the establishment to the termination, business entities’ lives are inseparable from the safeguard and regulation of a set of comprehensive legislation and rules. Given the relative well function of entry-into system for business entities based on the existing laws, this paper will mainly focus on the business entities’ market exit system on the basis of the analysis on current situation and issues in this legal regime as well as a comprehensive comparison with the market exit system in other jurisdictions, and the paper will be structured into four chapters.This paper begins with an introduction of the business entity exiting from the market referring to a legal activity of enterprises which, subject to the requirements on legal grounds and specific procedure, allows enterprises to quit from trade and competition in business market field and consequently withdrawing their qualifications of management and legal status, based on the examination of its four natures which are specific entity, diverse reasons, statutory procedures and the unique result, and with three primary functions of maintaining the stability of the social order, the efficiency of market competition and the public interest dimension solid balance.The reasons of the business entity to exit from the market, the routes to exit from the market, the weaknesses in the current business entity market exit system as well as the existing issues arisen in practice, which are the most important concerns in this research, will be highlighted in the following two charters. Primarily on the ground of the willingness of legal entity to quit from market, entity market exit can be classified into two forms: active exit and passive exit. Through the comparison between those two types of path under domestic and extraterritorial legislation, this paper will creatively propose two legal models for the establishment of a comprehensive legal regime for entity exiting market, by encouraging corporate to exit from market in proper time and on legal grounds, on the other hand by legal regulating on those business entities who passively and illegal exit from market.The cancellation system of registration is the last step and a significant symbol for business entity to withdrawn from market and it is mandatory, whether for active or passive exit, otherwise those business entities will become dormant in the market economy activities threatening the sound operation of the business market system. Therefore, this paper will suggest some effective measures with regards to introduction of log-out prompt, optimization of cancellation procedures and improvement on cancellation notice on the foundation of the experience of utilizing the cancellation system in domestic and international practice, by these measures, so that to optimize and further improve the market exit system for business entity.