The current Article 16 of the existing Companies Act has always been controversial. The guarantee contract cannot be simply identified as invalid on account of in violation of the mandatory provisions of law from the view of the most basic principle in the field of civil and commercial matters-autonomy of the Will and the law does not give additional obligations of reviewing to secured creditors. The company's own creditors can only be protected by other means despite their risks. Article 16 focuses on regulating the formation of the company's internal resolution. So the legal representative of the company enters into in violation of procedures for the guarantee contract does not necessarily invalid. The consequence of violating article 16 is more likely to be investigating the responsibility of the director violating regulations to the company on the organic law.