An Analysis Of The Legal Issues Of Corporate Reinvestment In My Country

The pursuit of economic profit is a main body of business activity that is established by profit seeking company,and investing abroad is an important way for a company to get economic benefits.Relative to shareholders' investment in the company,the company will invest in the company's capital invested by shareholders and achieve the transfer of capital in its own name.Therefore,the company's external investment behavior is called trans investment.A company's reinvestment is a proactive and coexisting activity.It can not only make the company gain substantial economic profits and competitiveness,but also make the company get into a predicament of capital growth.Although there are regulations on the company's investment behavior in China's law,its regulation is not perfect enough.There are still many problems.In view of the problems existing in the company's investment in China,this article is divided into three parts to analyze this problem.The first part is the analysis of the meaning and the advantages and disadvantages of the transfer of Companies in China.This part of investment from the company's meaning,analyzes the concept and scope of investment I Ancient Chinese Literature Search company,defines the company's investment in a broad and narrow sense,broad company investment including debt and equity,and narrow company investment only includes equity investment.According to the fifteenth provision of the company law of the People's Republic of China(hereinafter referred to as the company law),the company shall not become a contributor to the invested enterprise jointly and severally,except for other provisions of the law.It can be concluded from this provision that the investment in China's law requires that the reinvestment company bear the legal consequences arising from the business activities of the invested enterprises.The company's equity investment behavior will make the company participate in the operation and management of the invested company and have the decision-making power,so as to undertake the debt repayment obligation of the investment company's business activities.Therefore,this article only analyzes the investment behavior of the company from the narrow sense.After defining the scope of the transfer of the company,the article analyzes the advantages and disadvantages of the transfer of investment,and makes clear that the advantages and disadvantages of the investment behavior of the company coexist.Corporate reinvestment behavior helps to expand investment company's business scope,increase earnings and enhance strength,but it is also easy to cause capital growth and stakeholders' legitimate rights and interests damage.In the second part,the article analyses the procedures and restrictions of Chinese companies to transfer investment.In the process,China's "company law" only provides the subject can make investment decisions,and no specific procedures for the resolution of the provisions,for example,the resolution requires representing 2/3 or more of the voting rights of the shareholders by resolution or by representatives of 1/2 to the voting rights of the shareholders by resolution,therefore,investment the provisions of China's "company law" in the not completely regulated company,according to the British regulations on this system,put forward the business judgment rule of directors.The investment in the company's restrictions,including object limit and limit the amount of restrictions in the object,the article focuses on whether the partnership enterprise can become the main body of investment,restrictions in investment amount,the article focuses on,in the articles of association of the company to transfer the investment amount stipulated under the condition of the company beyond the limit specified in the articles of association the implementation effect of investment.The third part,the article mainly analyzes the consequences of the company's transfer of investment and the protection of the stakeholders.A company's investment behavior may cause related transactions.Two corporate reinvestment behaviors may lead to cross shareholding.Three companies' investment behavior may lead to cyclic shareholding.The article analyzes their advantages and disadvantages respectively.In respect of the protection of the stakeholders of the company,the company puts forward the corresponding protection measures against the different circumstances of the stakeholders.