On the Realization of Limited Liability and Limits of Its Legal Application

The limited liability system is adopted in business organizations like corporations,business trusts,and partnerships.It was achieved by construction of business organizations and assets partition in those enterprises.The important function of organization is to construct legal entities,promote assets partition and form independent corporate or trust assets by establishing corporations or business trusts,and then achieve the limited liability of the owners of business organization.The limited liability weakens the protection towards the interests of creditors,easily causing imbalance of interests.When the limited liability is abused,it should be corrected by imposing the systemized measures such as piercing the corporate veil and substantive consolidation rule.At the same time,the adoption of limited liability in professional areas should be careful,while emphasizing the strict accountability of experts.