Comparison On Limited Liability Legal System;

Analysis about the validity of transfering limited liability companies shares;

Company system with limited responsibility as the representative is one of the most rational forms of modern enterprise organization.

Social security is not equal to government s guarantee, government only takes limited responsibility in conformity with its financial burden ability and social security nature; social security is not enterprise s guarantee, enterprise only takes limited responsibility of paying social security fee for its staff to the social security organization; person who receives guarantee not only benefits f.

From the view of sociology,bankruptcy discharge is a legal affirmation of basic human rights;from a legal point of view,bankruptcy discharge could be viewed as a path for individuals to take limited responsibility;from the view of economics,bankruptcy discharge system brings more benefit to the whole society than it costs.

The theory of incentives shows that headquarters has to trade off the incentive cost including the ex ante limited liability rents and the expected revenue produced by induced effort due to the moral hazard and limited liability of division managers in capital budgeting within decentralized firms.

The transition from the unlimited liability system to the limited liability system lies in that a more efficient system is employed to replace the original system.

Limited Liability System,as an outcome of system revolution evolving from Unlimited Liability System to Limited Liability System,is more efficient than any of systems in the past and gain potential profits by extending system relief.