Disgorgement in Corporation Law:The Function and Computing Standard

Corporation Law Article 148 sets out the right of disgorgement,which plays roles as protection,prevention,and sanction. However,disgorgement doesn't result in extra protection and excessive deterrent,avoiding benefiting corporations improperly. The right of disgorgement shall be bound by the legal causation or proximate cause,and Chinese decisions pay too much attention to the factual causation. In specific situations,courts try to give assignees appropriate subsidies from corporations. In addition,the appropriate burden of proof facilitates the legislative purpose of Corporation Law Article 148 with strengthening accounting records system.