Legal Studies On The Validity Of The Company's Guaranty Contract

With the development of economy,there is a boom in the guarantee activities.As the company is one of the most important actor in this activities,it is necessary for us to perfect the legislation.Although the new company law had some related content,it is not clear.If the company violates its regulations or the related law,it is not clear enough to confirm the validity of the guaranty contract.So to solve these problems,there are three steps: firstly,qualitative the company law article 16 paragraph 1;secondly,analyze the impact of the company regulations;thirdly,analyze the examination duty of the secured party.To solve those problems,this article uses three cases to raise the key questions and makes suggestions: first,company law article 16 paragraph 1 can be defined as effective and enforcement article and those contracts which violate the article should be ineffective.Second,the company regulations can constrain the subject of the contract.Third,the secured party is only required to undertake the formal obligation.