Managerial Power, Discretionary Investment and Executive Compensation

Of course, judges can not exercise discretion arbitrarily.

However,because principle is necessary connection with discretion,reasoning by principle will be very arbitrary;especially when principles contradict with rules.

The connection between rules and principles is that of rigid regulations and discretions.

Ethical Dimensions of Administrative Compulsion —— free judgment, conformity to objectives and appropriateness of selection;

Administrative free judgment is a vital right which is entrusted to administrative institution by law.

The principle of "Trust and Honesty" originates from Civil Law containing honest contract and trusty suit, the two aspects of which in current civil law, that is honest and trusty requirement and the right of free judgment, are the further development to it.

The power of free adjudication externally exists in judge s valuation of evidence.

However, owing to the provisions of the Company Law regarding the number, registered capital and the joint liability of shareholders for investors to establish one-person companies, though these provisions are conducive to maintaining the safety of transactions, they seriously constraint the freedom of investment and influence people’s initiative to set up one-persons companies.