Piercing the Corporate Veil in China: Where is it Now and Where is it Heading?

33 Pages Posted: 4 Sep 2012 Last revised: 23 Oct 2015

See all articles by (Robin) Hui Huang

(Robin) Hui Huang

Chinese University of Hong Kong - Faculty of Law; 华东政法大学(East China University of Political Sicence and Law); University of New South Wales - Faculty of Law

Date Written: June 8, 2012

Abstract

This paper presents the results of the first comprehensive empirical study of China’s veil-piercing cases adjudicated under the statutory veil piercing regime as introduced in the 2005 company law reform. It provides insights into the way Chinese courts have interpreted and applied the veil piercing doctrine, an area of law renowned for its complexity and uncertainty worldwide. Some comparisons are drawn between the results of this study and those produced by similar studies in common law jurisdictions from which the Chinese veil-piercing regime was transplanted. The empirical findings are analysed to answer the question of whether and how China’s veil-piercing law has fulfilled its stated mission to protect creditors. In doing so, a number of suggestions are made with a view to improving the efficacy of the veil-piercing regime in China. The paper also applies the interest-group theory to explain and predict the development of China’s veil-piercing regime. The outcome of the research would be of considerable significance to, amongst others, foreigners who lend funds to, contract with, or invest in Chinese companies.

Keywords: piercing the corporate veil, China, empirical study, comparative perspective

JEL Classification: K22, K42

Suggested Citation

Huang, (Robin) Hui, Piercing the Corporate Veil in China: Where is it Now and Where is it Heading? (June 8, 2012). (2012) 60 American Journal of Comparative Law 743, Available at SSRN: https://ssrn.com/abstract=2140640

(Robin) Hui Huang (Contact Author)

Chinese University of Hong Kong - Faculty of Law ( email )

Shatin, New Territories
Hong Kong
852-39431805 (Phone)
852-29942505 (Fax)

HOME PAGE: http://www.law.cuhk.edu.hk/people/huang-hui-robin.php

华东政法大学(East China University of Political Sicence and Law) ( email )

1575 Wanhangdu Rd.
Changning, Shanghai 200042
China

University of New South Wales - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia
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61-2-9385 1175 (Fax)

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