The Nature Analysis and Legal Basis about Director’s Liability to Third Parties: Chinese corporate law development and Global Perspectives

Abstract

China's newly revised company law, on the basis of learning from foreign legislative experience and summarizing domestic judicial practice, has made specific provisions on the compensation liability of company directors for damage caused by others in the performance of their duties. However, due to the ambiguous definition of article and unclear scope of subject and object, it met a lot of problems during the process of application. This article mainly uses the comparative method and foreign theories to analyze the reasonableness and accountability, thus provides legal basis for it. By interpreting this article, it put forward creative measures to reconstruct Chinese special corporate system and find Chinese own reformation pathway.