Essays in Chinese Business Law
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Essays in Chinese Business Law - Roberto Miguel Rodriguez
ESSAYS IN CHINESE BUSINESS LAW
BY
ROBERTO MIGUEL RODRIGUEZ
2018
Table of Contents
A Legal Person is of Much Greater Relevance to Business than a Natural Person
Works Cited
The promulgation and implementation of the Property Rights Law has ushered a nerw era where providing significantly heightened protection of private property rights in China is now possible
Works Cited
The Doctrine of Good Faith: An Important Pillar in Chinese Contract Law
References
The Doctrine of Force Majeure in the People’s Republic of China
References
China’s economy will continue to be impacted by international business law and regulatory regimes
The Growing Importance of Regional Economic Organizations and Trade Blocks and APEC’s Place in this Category
The Place of APEC among the Regional Economic Organizations
References
The One-Person Limited Liability Company: Potential for Abuse or Manipulation?
Concluding Comments
Works Cited
The Foreign-Invested Enterprises (FIEs) and the Company Law: Overlapping Governance Structures?
Works Cited
A Legal Person is of Much Greater Relevance to Business than a Natural Person
I do agree with the statement that compared with a natural person, a legal person is of much greater relevance to business. There are several reasons why: A legal person potentially can have indefinite life, which means that it can live forever. A natural person, on the other hand, even if in good health, will inevitably have to face death sometime in the future. When the natural person dies, any business that he or she might own will have to be transferred to the heirs, who may or may not have an interest in the continuation of the business. A legal person can continue in operation even if the Chief Operating Officer of the President dies, because the legal person has the mechanisms to substitute this individual for somebody else who has the necessary educational and work experience requirements.
Also, a legal person can benefit from the financial contributions of a number of stockholders while a natural person, even if very rich, usually has to limit his or her investments in the business to the resources owned or personal debts. The legal person, by being able to accumulate the financial contributions of many investors, is able potentially to accomplish great things. In addition, while a natural person has unlimited liability for anything that can go wrong, such as a lawsuit, the investors in the legal person have limited liability for only the amounts they have invested in the legal entity. The legal person, when it is a for profit enterprise, is a separate legal entity from the stockholders who own the stock, has potential perpetual life, has expansion possibilities, has the ability to attract an indefinite number of investors and lenders, offers protection of personal assets for the legal person’s stockholders and its ownership is flexible and transferable (Lal, 2013, 1).
The fact that the shareholders in a for-profit legal person are not liable for the corporate debts is an advantage of tremendous importance. The liability of the stockholders is limited to the investment made in the legal person (Legalzoom, 2013, 2). The possibility of raising capital has made many for-profit legal persons extremely powerful in the world economy. While the economic effects of such gigantic entities is highly debated, many countries in the process of development, including China, welcome the investments of these multinational corporations, not only for the capital that they can bring into an economy, but also because of the technological expertise that they can contribute to a national economy (Venables, 2005, 2). Some Chinese companies have achieved multinational status. Haier, for example, is the world’s 4th largest maker of home appliances and ZTE has become the world’s 5th manufacturer of telecommunications systems and equipment (Contessi