Director’s liability and investor protection: a law and finance perspective

This article conducts an analysis of director’s liability in listed firms using modern finance theory. The paper describes how the use of special general clauses in Danish law regulates director’s liability. It is shown how risk and return combinations may assist in determining whether management has violated the business judgment rule. The analysis shows that this legal doctrine is optimal from an economic perspective. The article introduces the concept of “temporal relatively of the shareholder equality principle” which can be used to determine whether the interests of minority shareholders have been set aside. It is shown that the principle of shareholder equality must be subjected to both an ex ante, as well as an ex post assessment. Moreover, courts should be reluctant to interfere in situations where there has been an unequal distribution of gain (or loss) ex post. The theoretical arguments are illustrated by analyzing a leading Danish court case that involved the squeeze out of minority shareholders in the Danish telecom company. The paper also analyzes the incentive effects of derivate suits and suits commenced by individual shareholders. It is shown that the former creates a free rider problem whereas in the latter situation, shareholders are not fully able to internalize their externalities.     

破产法:美国的经验与启示

美国破产法经过长期的发展,于1978年确立了现行的制度架构。美国《破产法》关于公司破产的内容,主要体现在第7章和第11章中,也就是其中有关清算程序和重组程序的规定中。分析的结果显示,破产法面临内在的矛盾或冲突,不能同时消除"存伪"和"去真"两种错误,也不能同时实现事前效率和正确的投资与申请破产决策。从破产法的实际操作来看,无论清算还是重组,都会造成一定的价值损失。中国还处在从计划经济向市场经济转轨的过程中,为了解决预算软约束问题,需要严格的破产法。这样的破产法将是债权人导向的或者说对债权人友好的,将更多地运用清算程序。     

Bankruptcy around the World: Explanations of Its Relative Use

The law and finance literature highlights the role of investorrights in financial development, firm corporate governance,and financing patterns. For a panel of 35 countries, we investigatehow bankruptcy use relates to countries’ creditor rightsand judicial efficiency. Bankruptcies are higher in countrieswith more creditor rights, except for a "no automatic stay onassets" provision. Higher judicial efficiency is associatedwith more bankruptcies and appears as a substitute with morecreditor rights. Although only a first step, our findings suggestcreditor rights are complex, balancing prioritization of claims,ex ante risk-taking incentives, and an efficient resolutionof distressed firms.     

Out of Time: The Moral Temporality of Sex, Crime and Taboo

This paper discusses the relationship between law and morality. Morality does not necessarily coincide with the law, but it contributes to it. An act may be legal but nevertheless considered to be immoral in a particular society. For example, the use of pornography may be considered by many to be immoral. Nevertheless, the sale and distribution of non-violent, non-child related, sexually explicit material is legal (or regulated) in many jurisdictions. Many laws are informed by, and even created by, morality. This paper examines the historical influence of morality on the law and on society in general. It aims to develop a theoretical framework for examining legal moralism and the social construction of morality and crime as well as the relationship between sex, desire and taboo. Here, we refer to the moral temporality of sex and taboo, which examines the way in which moral judgments about sex and what is considered taboo change over time, and the kinds of justifications that are employed in support of changing moralities. It unpacks the way in which abstract and highly tenuous concepts such as “desire”, “art” and “entertainment” may be “out of time” with morality, and how morality shapes laws over time, fabricating justifications from within socially constructed communities of practice. This theoretical framework maps the way in which these concepts have become temporally dominated by heteronormative structures such as the family, marriage, reproduction, and longevity. It is argued that the logic of these structures is inexorably tied to the heterosexual life-path, charting individual lives and relationships through explicit phases of childhood, adolescence and adulthood that, in the twenty-first century, delimit the boundaries of taboo surrounding sex more than any other time in history.     

Intention and Attempt

Anglo-American criminal law traditionally demands a criminal purpose for an attempt conviction, even when the crime attempted requires only foresight or recklessness. Some legal philosophers have defended this rule by appeal to an alleged difference in the “moral character” or “intentional structure” of intended versus non-intended harms. I argue that there are reasons to be skeptical of any such differences; and that even if conceded, it is only on the basis of an unworkable view of criminal responsibility that such a distinction would support a rule restricting attempts to criminal purpose. I defend instead the “continuity thesis,” according to which attempts are functionally continuous with endangerment offenses: both are legal efforts to regulate unreasonably dangerous conduct. The upshot of the continuity thesis is that there is little substantive difference between attempt and endangerment in principle, no matter how they are labeled in law.     

Contracts, Necessity and Ex Ante Optimality

In this paper I return to the issue of incentives to justify a narrowing of the applicability of a fair price rule to contracts of necessity. It is argued that such contracts should be viewed as part of a set of ex ante choices, one of which will minimize the costs of dealing with the risks associated with a period of temporary necessity. The Pareto optimality of a contract of necessity depends on whether the contract price would be seen by a potential victim of necessity as optimal ex ante, relative to her other choices with which to deal with the risk. It is shown that in the special case of a discrete choice set a fair price rule of law may not lead to efficient behavior on the part of both agents.     

When is Negligent Inadvertence Culpable?

Doug Husak suggests that sometimes an actor should be deemed reckless, and not merely negligent, with respect to the risks that she knowingly created but has forgotten at the moment of action. The validity of this conclusion, he points out, depends crucially on what it means to be aware of a risk. Husak’s “neutral prompt” and “counterfactual actual belief” criteria are problematic, however. More persuasive is his suggestion that we understand belief, in this moral and criminal law context, as a concept whose meaning is determined by its function as a culpability standard. Husak concludes that inadvertent actors are often less culpable than knowing-but-later-forgetful actors; this is plausible, but there are also numerous counterexamples.     

Interdisciplinary research on international relations theory and international law in China over the past 10 years

From the origin, there has been a strong connection between international relations and international law. In the development of the history of different academic subjects, the research on international relations and international law are interdependently promoting each other. As a result, the realization of interdisciplinary research on international legal theory and the study of international law is inevitable. As a matter of fact, even though the interdisciplinary research of the two subjects has been separated for almost half a century, the need for the development of the subject and the changing world political and economical status give them a new chance for reunification. Recently, the interdisciplinary research on international relations theory and international law by the Western academic is becoming the order of the day, which has become the latest shining point of the recent development of the two subjects, which is even regarded as the new revolution of international relations theory and the study of international law. In this context, the past ten years is a period of emergence of Chinese international relations and the interdisciplinary research of international law. In the past ten years, some scholars have overcome “the difficulty of interdisciplinary research,” “the prejudice within the subject” and “the gap among different subjects,” and made pioneering research in the field of “systematic connection” and “issues in overlapping field.” Moreover, they gradually make the interdisciplinary research to be a popular method and a common recognition. Based on the current studies, interdisciplinary research will have a broad future in the fields such as “the interchange of concepts,” “the exchange of method,” and “the mutual assistance of materials,” which will provide scholars in this area with a broad space for research.     

论破产法上债务人高管人员民事责任的追究

The Enterprise Bankruptcy Law has designed the regime for debtor’s senior managers to bear civil liabilities, while the framework design concerning the prosecution mechanism of civil liabilities is still unclear. How to establish a prosecution mechanism of civil liabilities of debtor’s senior managers in line with the purposes of the bankruptcy regime is a substantial issue during the implementation of Enterprise Bankruptcy Law. The realization of the civil liabilities regime of debtor’s senior managers depends on the establishment and operation of a relatively well-developed prosecution mechanism of civil liabilities. The focus of the prosecution mechanism of civil liabilities is to determine the subject of prosecution of civil liabilities, the way to realize civil liabilities, and the special hearing proceedings and authorities of the court. Taking steps to clarify and improve the prosecution mechanism of civil liabilities focusing on the subjects of prosecution (debtor’s senior managers) and authorities of the court, is the essence and systematic safeguard of realizing the civil liabilities regime of debtor’s senior managers in the Enterprise Bankruptcy Law. Gan Peizhong, Ph.D, is a professor of law and director of the Research Center for Enterprise and Company Law at Peking University. Prof. Gan is a recognized expert on economic law, company law, bankruptcy law and the reform of state-owned enterprises in China. He has released numerous articles on Chinese law journals and published many books. His major publications include Encyclopedia of Chinese Economic Law (vice editor-in-chief), New Studies on Economic Law (co-editor), New Studies on Enterprise Law (author), Studies on Chinese Economic Adjudication (editor-in-chief), Studies on Foreign Economic Law in Beijing (editor-in-chief), General Theories on Economic Law (co-editor), Legitimate Exercise of the Corporate Control Rights (author). Moreover, he was named the “leading young and middle-aged jurist” by Beijing Law Society in 1999. In addition, Prof. Gan is the deputy-president of the Securities Law Association, a member of the Standing Committee of the Economic Law Association under China Law Society. He also serves as the consultant of the Legislative Affairs Commission of the NPC Standing Committee and Beijing Municipal People’s Congress, as well as the Haidian District Court of Beijing.     

A Dialectic Study of the Structure and Basic Concepts of Traditional Chinese Law and an Analysis of the Relationship Between li (ceremony) and fa (law)

In the course of history, the meaning of fa (a Chinese character with an approximate meaning of “law”) has not been invariable, and its connotation in modern times has been enriched constantly, so as to incorporate many elements of ancient li (ceremony). If the modern concept of law, already changed and still changing, is to be used to mechanically compare and interpret traditional Chinese law, misunderstandings might arise. Actually, li and fa are indispensable components of traditional Chinese law, and the lack of necessary study of the li will prevent us from understanding and explaining the spirit of traditional Chinese law. In traditional Chinese law, “fa” usually refers to an institutional dimension, especially after Qin and Han dynasties, whereas li, especially li yi (moral basis for rites and ceremonies), is where the value and spirit of traditional Chinese law can be found. Translated from China Social Science, 5^th Issue, 2003 in Chinese     

“Convergence of three nets” and its law transformation in China

The convergence of the three nets of telecommunication, television and Internet is a general trend of development. Though the “convergence of three nets” promotes the competition in the relevant markets, it causes relatively big impacts on the existing legal order. To meet the challenges brought forth by the “convergence of three nets”, many countries and regions have successively adopted effective measures for legal transformation, not only integrating laws and regulations on the telecommunication industry, but also attaching high importance to the transformation of the legal adjustment and control mode where increasingly more emphasis is laid on the influence and functions of competition law in the “convergence of three nets”. China’s antimonopoly law shall also play an important role during the process of the “convergence of three nets”. With respect to the definition of the relevant market and identification of monopoly practices, we shall closely combine the features of the “convergence of three nets” and pointedly apply the antimonopoly law.     

Democracy, rule of law and human rights protection under gradually developed constitutionalism

With the shifting of the economic pattern and the developing of administrative law, the modern constitutionalism of China has adopted a progressive development process. Over 20 years, the development of democracy, the rule of law and the human rights protection clearly illustrate this point. For the gradually developing constitutionalism, the theory of limited rational is a theoretical basis, the stability of society is a social basis, the changing economic system is a economic basis, and Confucianism is a cultural basis. Constitutionalism of China should continue to go in such an active, steady and gradual way. Wang Zhuojun, Professor and Director of Administrative Affairs of Soochow University (till now) and as a visiting scholar in the Department of Government & Politics, University of Maryland, USA (1996.1–1997.1), whose research focuses on culture, politics and science of law. So far, his publications are “The Political System in the Perspective of Culture”, “A History of Epistemology”, “A Study of the External Economy of China’s Universities”, and his translations include “Introduction to Culture and Anthropology”, “Challenge to Culture from Science and Technology”, etc. Moreover, He has presided several research projects sponsored by The Ministry of Science and Technology of China and the Education Department of Jiangsu Province, China.     

犯罪人的本质属性辨析

The difference between criminals and non-criminals has always been a topic for criminal psychologists. It is easy to describe the features of offences by their social and legal attributes, while it is still difficult to find any significant difference of the features from ontological perspective of criminals. To get to know criminals from the point of personality, we may discover the essential features of criminals. However, while acknowledging the role of personality, the variables such as situations, moods and social relationships can not be neglected. Meanwhile, it is also necessary to study the personality mechanism of criminals. Zhang Shaogang, an associate professor in Communication University of China, also acts as compere in the program of the “Jinri Shuofa” (legal report) and “Dajia Kanfa” (all get close to the law). Since 2006, he became a Ph.D candidate at China University of Political Science and Law, majoring in the direction of criminal psychology. His publications include “TV Planning Outline”, “On the New Planning of TV”, “Television Programs and Program Planning”. The large-scale live broadcasts called “20 Hours of Life” referring to three cross-strait districts, presided by him, achieved the first prize of China News Awards in the category of live televisions.     

The battle for patent rights in plant biotechnology: evidence from opposition fillings

This paper describes and analyzes the occurrence and extent of oppositions initiated against plant biotechnology patents granted by the European Patent Office (EPO). The opposition mechanism is a legal procedure that allows any third party to challenge the validity of patents awarded by the EPO. Results indicate that the opposition rate is far greater in plant biotechnology than in other emerging industries. Consistent with theoretical predictions, the empirical findings suggest that opposed patents are disproportionately those that score high on features that proxy for their “value” or “quality”. In contrast to previous findings, however, the results show that large-volume applicants are more likely to be opposed. Because the boundaries of plant biotech patents are ill-defined, large patent portfolios do not promote cooperative behavior such as licensing or settlements. The analysis rejects the hypothesis that awardees are subject to “nuisance” or “frivolous” oppositions. Instead, the opposition procedure serves as an error correction mechanism.     

中美知识产权"刑事门槛"争端的法律问题

In April 2007, the United States filed an application with the DSB of WTO with respect to the issue of criminal law protection mechanism of intellectual property rights in China, which was the first dispute accepted by the DSB arising out of the issue of criminal law protection mechanism of intellectual property rights. The core of the dispute of the case is how to interpret the “commercial scale” under Article 61 of the TRIPS Agreement as the “criminal threshold”. It can be seen from the practice of the interpretation of the DSB that while each WTO member is entitled to interpret the term “commercial scale”, the boundary of interpretation is subject to Article 61 of the TRIPS Agreement. It is unnecessary for China to lower her “criminal threshold”, since China’s criminal law protection in intellectual property policy is in compliance with the TRIPS Agreement. In fact, the United States should change from lowering the criminal threshold to how to strengthen the criminal crackdown on piracy under the circumstance of lowering the price of genuine works when imposing pressure on China in the protection of intellectual property rights. He Xiaoyong, Ph.D, is presently a professor in the Faculty of International Law in the University of East China University of Political Science and Law. He studied as a visiting scholar at the University of San Francisco (2001). He was awarded a Chevening Scholarship in 2002 sponsored by British Council and Shanghai Outstanding Teacher Award in 2004. He has released more than 80 academic articles on WTO issues and international financial law, and his monographs include Legal Aspects on Supervision under Financial Globalization (2002), International Trade Dispute Settlement and China’s Perspective: Under the WTO framework (2006) and new issues under the WTO (2008).     

What is Inhuman Treatment?

In this article, I propose and argue for a conception of inhuman treatment. In the human rights context, I claim, inhuman treatment is that which is grossly degrading. Relative to “cruel,” “inhumane,” and “degrading,” “inhuman” has received little attention from moral philosophers. My aim here is to analyze this concept in greater depth in order to determine what it brings to discussions about punishment and other kinds of treatment. I begin by drawing distinctions between “inhuman,” “inhumane,” and “degrading.” Then, I discuss analyses of “inhuman treatment” proposed by Jeremy Waldron and John Vorhaus. Although I find both conceptions problematic, discussing each helps me to set the stage for my proposal. After articulating and arguing for my own conception, I conclude by briefly explaining some of its implications.     

Thoughts on the theories and practice of chinese private international law

“The parties can only choose facultative legal norms,” “the parties of all foreign-related civil and commercial cases may agree to choose Chinese law as the applicable law governing their legal relationship,” and “the applicable law to the contract chosen by the parties shall not avoid the mandatory provisions of Chinese law” —such viewpoints that have substantial influence among the theorists and in the judicial practices of Chinese private international law are actually based on misunderstandings of Chinese private international law. It is a task of the private international law community of China to eliminate such misunderstandings, hence facilitating the healthy development of Chinese private international law.     

试论"超越法律"的企业社会责任

The corporate social responsibility “beyond law” is the responsibility of enterprises beyond the mandatory obligations by force of law but in line with social values and expectations. Indeed, the legal norms on such kind of responsibility are “soft law”, which mainly incorporate social values and expectations in corporate business behaviors and governance structure, so as to realize corporate “self-regulation”. By protecting the substantive and procedural rights of stakeholders and improving their negotiation power, the “soft law” aims at realizing the spontaneous confrontation and balance of the market, and the corporate reputation mechanism and the functions of NGOs adds much to the performance of corporate social responsibility. He Zhaodan, Economics Doctor of Sun Yat-Sen University, mostly focuses on Law and Economics. She has published six research articles in the academic journals of China.     

罪刑法定视域中的刑法适用解释

The judicial interpretation of criminal law should be an application interpretation to individual cases that is guided by judges and participated by the prosecutor and the accused, for which the judicial judgment should be combined with the application of criminal law of specific cases, and the criminal precedents should be as a carrier. The Supreme People’s Court should change from the previous practices of issuing normative and abstract interpretation to the dual approaches of the interpretation of criminal law application through direct creation and indirect acknowledgement. Liang Genlin, Professor and Vice Dean of Law School of Peking University and as a visiting professor of University of Tuebingen (2001–2002). His main research focuses on criminal law and criminal policy, and his important publications include “On the Structure of Punishment”, “Liang Genlin’s Review on Criminal Policy, Volume I, Criminal Policy: Standpoint and Category”, “Liang Genlin’s Review on Criminal Policy, Volume II, the Arm of the Law: Expand and Limit”, “Liang Genlin’s Review on Criminal Policy, Volume III, Criminal Sanction: Manner and Choice”. Besides, he has also published over 40 discourses on criminal law and criminal policy since 1996.     

What Is The Wrong Of Wrongful Disability? From Chance To Choice To Harms To Persons

The issue of wrongful disability arises when parents face the choice whether to produce a child whose life will be unavoidably flawed by a serious disease or disorder (Down syndrome, for example, or Huntington’s disease) yet clearly worth living. The authors of From Chance to Choice claim, with certain restrictions, that the choice to produce such a child is morally wrong. They then argue that an intuitive moral approach––a “person-affecting” approach that pins wrongdoing to the harming of some existing or future person––cannot account for that wrong since the choice to produce such a child cannot, under the logic of the nonidentity problem, harm that child. The authors propose that we supplement the person-affecting approach with an “impersonal” principle that takes the form of their well-known principle N. In this paper, I argue that the authors are mistaken to suppose that a plausibly articulated person-affecting approach cannot account for the wrong of wrongful disability. We can retain an intuitive, comparative, “worse for” account of harm and still identify serious harms imposed by the choice of wrongful disability. In particular, I argue that harm, both to the impaired child and to others, comes not in the form of that procreative choice’s procreative effect but rather in the form of its many distributive effects. I also argue that the rare, residual case in which a person-affecting approach would approve of the choice of wrongful disability does not function as a counterexample to that approach. As a separate matter, I address legal claims for wrongful disability, which are closely akin to claims for wrongful life. The legal claim is brought by the impaired child, not against the parents, but rather against health care providers whose negligent failure to diagnose or inform parents of an increased risk of a genetic or congenital impairment results in the birth of the impaired child. The authors’ treatment of the moral wrong that is done as impersonal in nature suggests that courts are correct to dismiss any such claim. Once we identify harm, however, the person-affecting approach can identify a clear foundation in the law for the wrongful disability claim.