The Perfection Of The System Of Defective Creation Of Company

Establishment of a Company is a series of actions to enable the company to obtain legal personality according to the law in general. Generally, there are two consequences of the establishment of the company, to be a success or a failure. Detective Incorporation is a no normal morphology between success and failure. Defective Incorporation means the company has been approved by the company registration authority to register and obtain a business license of the company, in the process of establishing the conditions or procedures are not folly in accordance with the provisions of the Act to establish the circumstances. Detective Incorporation has been in existence ever since the company setting up to produce birth. As for the personality of detective Incorporation, law experts have different opinions, mainly for two processing modes.One is conclusive certificate principle for common law countries and another Disregard principle for continental legal countries, conclusive certificate principle confine the personality once the company obtain the certificate from registration authority while the Disregard principle not confess the personality regardless the certificate ever got. In our country, administrator means are generally used for defective incorporation, which contains the mandatory of the country. That seems impair for those who are honest and following the rules of the law. And more often, it will rise up the cost of trading and marketing. Here I hope I can summarize and analyze the theories through the existing general theory system for horizontal and vertices almost-dimensional analysis and to find out which method we can use in our legal system as for defective incorporation. To be further, I hope I can take a glimpse into Chinese legislation and make conclusion of the defects and trapping in our legal system and try to recover it.