A Study On The Legal Issues Of Equity Contribution

This paper proposes a new framework within which to examine the relevant legal issues of equity contribution, and basing on the idea that the value and function of equity contribution is to a large extent consistent with capital system,the paper studies the nature and admissibility, the subjective and objective conditions, the performance, the value assessment, and the information disclosure of equity contribution, and also the link between equity contribution and corporate control. In particular, it focuses on the discussion that equity contribution is a method of capital contribution, which is subjected to the category of capital system, therefore it is concluded that the change from statutory capital contribution to authorized capital contribution is reflected in the deregulation of the form of shareholder's capital contribution .Chapter 1 discusses about the diversity of capital contribution and the admissibility of equity contribution. The diversity trend of capital contribution is researched by way of analysis and the priority of equity contribution is deeply explored. Then through the discrimination of equity, capital contribution, and share, it is concluded that equity has the nature of property rights, so it supports the point that equity is a new type of property rights, and possesses the admissibility of capital contribution.Chapter 2 investigates the requirements of subjects and objects of equity contribution by the way of classification. Firstly, it is pointed out that the subject of equity contribution is constrained by the general provisions to shareholders, and therefore retains the rights of disposition, close personal relationship and private nature, which restricts the subject to a certain scope. Secondly, as transferability is the basic condition of equity contribution object, the liquidity-restricted and power-burdened equity contribution should be confirmed under stern provisions. Finally, the operating conditions and nature of stock issuers should not be restricted in order to encourage and promote the establishment of companies.Chapter 3 probes the performance of equity contribution. With the basic theoretical analysis of transferability of equity contribution, a further research is...