Research On The Lowest Capital System Of The Limited Company Of China

The lowest capital system of the limited company aims to assure the profits of creditors. But the practice has proved that the lowest capital system can't realize the aim and has hampered the company. The western advanced countries have modified the lowest capital system and made it suitable to their own countries. However, the lowest capital system still exists in China. This thesis firstly analyzes the lowest capital system of the advanced countries, then analyzes the lowest capital system of our country and suggests the direction of the lowest capital system and construction and improvement of relative systems in China.This thesis consists of three chapters. Chapter one comparatively analyzes the lowest capital system between the Continental Legal System and Anglo-American Legal System; Chapter two analyzes the lowest capital system in our country; Chapter three suggests the direction of the lowest capital system and construction and improvement of relative systems in our country.Chapter one comparatively analyzes the lowest capital system between the Continental Legal System and Anglo-American Legal System. This chapter analyzes the reasons that the lowest capital system still exists today in the Continental Legal system and the reasons that it isn't ruled forcibly in Anglo- American Legal system. The reasons that the lowest capital system still exists in the Continental Law Legal system are followed. First, influence of the legal current. Mainly Influenced by the legal current that the profits of creditors are the most important; Second, introduction to the advanced capitalsystem of the limited company in the Anglo- American Legal system. According to the advanced capital system of Anglo- American Legal system, the continental legal system modified the lowest capital system and made it suitable to their countries; Third, influence of the Path Dependence. There is the Path Dependence when the system is changed. That is the system that will immediately strengthen itself and make it supported day by day when the vicissitude of the system is pushed. Based on the above means, the system will go ahead on the same road.The reasons that the lowest capital system isn't ruled forcibly in Anglo-American Legal system are followings. First, influence of the thought of the freedom. The lowest capital is so high that it deprives many people's rights to establish the company, which can't be accepted in America where the human beings' rights are regarded important very much; Second, that benefits the investors in the practice; Third, the advanced case system. The advanced case system assures the profits of creditors.Chapter two analyzes the lowest capital system in China. The author introduces the lowest capital system in the company law of our country and mainly analyzes the reasons why the lowest capital system exists in China. The following reasons are why the lowest capital system appears and exists in China till today. First, the background of the company law. In 1993, the policy of turning the national enterprise to the company model was put in our country. The Company Law was legislated to realize the policy. Though the lowest capital was so high, it didn't hamper the establishment of company because there was enough capital in the national enterprise. At that time the lowest capital system wasn't the main problem; Second, support of the theory. Influenced by the Continental Legal system, the theory of the company lawsupports the lowest capital system.The following analyzes the lowest capital system in our country. First, the lowest capital system can't really assure the profits of creditors. The lowest capital is stable when the company is established theoretically. After the company is established, the company capital will be changed when the company goes ahead. So there are no reasons from the theory to assure the profits of creditors depending on the registered capital. From the practice, the investment is strictly supervised ahead of time, then limited strictly, last supervised and punished. But there are still three credit crisis and the fact has proved that the lowest capital system can't assure the profits of creditors; Second, the defects of the lowest capital system in the practice. The legislative aim of the lowest capital system cheats the creditors, which influences the reason investment; It's difficult to entrance the market to the new company, which will not benefit the economic development of the underdeveloped region; The monopoly will easily become true, which will be harmful to the competition; It is difficult to establish the company to the research personnel; It will lead the capital waste; From the procedure, the cost of establishing the company is too high; It induces the actions that break the law so that it will raise the government cost of the supervision.Chapter three suggests the direction of the lowest capital system and construction and improvement of relative systems. In this chapter, the author suggests to think from the scratch, according to the conditions in our country, the lowest capital system should be reduced. The lowest capital system can't really assure the profits of creditors. The legislative aim of the lowest capital system should be turned. Relative systems should be established to assure the profits of creditors. Though the lowest capital system can't really assure the...