Research On The Application Of The Corporate Personality Denial System In The Case Of Significant Capital Shortage

In the context of rapid economic and social growth and the ever improving of legal system,legal practitioners have conducted profound research on the corporate capital system.Plus the reform of this system has lifted limit on the minimum statutory capital and fully deregulated fixed period of capital contribution.Timely,the system of disregard of corporate legal persons' personality emerged.Meanwhile,capital deficiency began to plague companies,and such issues tended to undermine the rights and interests of shareholders and the legitimate interests of creditors.Under this circumstance,the effective application of the system of disregard of corporate legal persons' personality is of particular significance to safeguard the interests and achieve equilibrium in the benefits of all parts involved.Currently,the application of various systems is still in the pilot phase and a feasible and established criterion is yet to form and some challenges are facing the legal community,such as the limited research on the application of the system,serious inadequacy of regulations governing the legislation,insufficient cases of reference in practice,and the disorderly application of articles of law in the practice of litigation.Such endeavors can not only make up for the deficiency in legislation but offer guidance to the application of it in juridical practice.From the perspective of the application of the system of disregard of corporate legal persons' personality,this essay aims to analyze the identification and application of this system in the context of marked capital deficiency.First,generalize the research on this system at home and abroad.Second,accurate identification of the state of marked capital deficiency determines whether or not the system can be applied in case of it.The identification involves the definition of "marked capital deficiency" and the standard and the time nodes of "marked deficiency".Only if the state of marked capital deficiency is identified can judgment be made on whether the state can be applied and thus require shareholders to shoulder unlimited joint responsibility.Third,after identification,judgment need to be made about its function as the foundation for,principles and conditions of the application of the system of disregard of corporate legal persons'personality.In the light of the relaxation of China's corporate capital system,we cannot be more prudent when apply the system of disregard of corporate legal persons'personality in case of marked capital deficiency.We should not deal with all cases indiscriminately,and distinct systems and treatments should be adopted when handling issues concerning creditors and shareholders to strike a balance between the maintenance of creditors' interests and the shareholders' enthusiasm for investment.