Studies on Limited Liability System

Limited liability system is an important system in the field of civil and commercial law, which is called a traditional corner stone of Corporation Law. The system has certainly applicable conditions and scopes. And its social and economic values include: decreasing and transforming risks, encouraging investment, shaking off the fetter of corporation development resulted from this system, cutting down dealing expense and managerial costs, promoting the effective development and expansion of corporations. But the system faces the problem of misusing this limited liability. Denial corporate personality is a kind of means overcoming the shortcomings originated from this liability, and the introduction of remunerative liability is a necessary choice of legislation in China.