On Supervision And Legislation Of Share Contribution

With the enhancement of the economical globalization and unification, the function of company stands out as the kernel in the market competition. Company is not only the cell of the market economy, but also the powerful tool to enlarge the economy. In order to guard the competitive ability of a company, the legislatives in many countries are loosing their controlling on the company. The loosing mainly reflects in the field of the market entrance, market operation, market withdrawal and so on. Purely seeking the Chaodi Competition according to the Company Law, will attract the foreign investment temporarily and activate the economy, but on the other hand threaten the whole benefit of the society because of the shortcomings shaped by the profit-making nature of investors and the characteristics of company itself.Everything is linked and developed mutually let alone the company. Through deeply analysis of the internal and external situations in the company we can see that the company in market economy involves the benefits of such people as shareholders, high-ranking administrators, staffs, creditors and so on. Law is supposed to coordinate their relationship as a social balancing tool. As for the Company Law, its legislative inclination should be based on the balance of the benefits rather than partially defend the investors'benefits. The renewal of the thought will directly influence the construction of the concrete regulations. From the aspect of benefit balance, the result in the debate on the legislation and authorization on the company capital depends on how to define the function of the capital, which links closely with the market environment. Under the conditions of the sluggish economy and imperfect credit system, it is significant to emphasize the function of capital guarantees. Further it can be inferred that share contribution form as a branch of company capital system should still be supervised on the basis of benefit balance.To construct the share contribution form in accordance with the Chinese national conditions, the first step will be to make clear the characteristics of shareholding. Shareholding, as a special property right, has uncertainty in its value, which will directly influence the legislative design of the share contribution form. The characteristics of shareholding decide on the need for supervising. It is necessary to re-explain the definition of shareholding and discover the difference of share contribution and other ways through analyzing the participation of the shareholders. This shows the need and reasonability of share contribution theoretically. Further, there is basic analysis of share contribution. Compare the share contribution with other company behaviors by classifying the different standard of share contribution, which prepares for the proper supervision later. To discuss the supervision of share contribution, one necessary work will be to make clear the legislative situations at home or abroad, which will help us to know the new tendency and offer us a reference. On the other hand we discuss it from such aspects under Chinese national conditions, as the links between the share contribution and company capital system, company management, Company Law and so on. After making sure the need for legislative supervision, it mentions the main points of supervision from the development and process of share contribution. Share contribution can be separated into three stages of analysis, norm and law. On the basis of the particularities of each stage, the supervision can be carried out in several steps such as forbidding, limiting and permitting contribution according to the different forms of share contribution, which can be argued systematically in the respect of subject and object. Through the argument and combination with the Chinese practical situations, correspondent legislative suggestions are posed as following.