Research On Corporate Guarantee Legal Issues

The 16^th article of Company Law aims at standardizing companies’ internal decision making process. The adjustment’s targets are the internal law relations of the company and without involving external legal relations between the company and the third party. The 16 th article of Company Law belongs to regulatory norms in terms of normative quality and it has two characters, which are Entitlement and Manageability, respectively. So it cannot be recognized as a highly effective regulatory norm. But now we can’t stop disputing only by judging a company’s guarantee capability in excess of authority and sometimes this will also lead to market disorder. When we evaluate a company’s guarantee capability in excess of authority, we should follow the 50 th article of Contract Law, and through judging whether the third party has goodwill or not, which means whether the third party has filled his obligation of formal examination or not, then we can be sure about the company’s guarantee capability in excess of authority effect.