Study On The State Of Inadequate Capitalization, As The Reason Of Disregard Of Corporate Personality

The dissertation holds an in-depth discussion about the state of inadequate capitalization, what is one reason of disregard of corporate personality. It expounds the system of disregard of corporate personality at first, then analyzes importance of inadequate capitalization. It confirms capital in this state and how to ensure the inadequate capitalization, it drawing the conclusion of the trait and make some legal suggestions of extraordinary insufficiency of corporate capital.Inadequate capitalization, as a reason of disregard of corporate personality, means the shareholder wants to set up a corporation with inadequate capital. In this state, the shareholder is deemed abusing form of limited liability of corporation and transferred the risk to the others, which is inconsequence and unfair. So the shareholders must hold personal liability.Ordinarily, enrolled capital means the capital of inadequate capitalization. If the enrolled capital is illusive or taken away by shareholder's illegal methods, the real or remained one is capital of inadequate capitalization and so on. It deems that the time of set-up of the corporation is the time of being estimated. Inadequate must not judge by enrolled capital, but the special capital amount required by law is available.It concludes the characteristic, such as the difficult of estimating risk, even the faintness standard advances a new desire of judgment. There are few cases that shareholders set up a corporation with little capital. It always companioned by other actions of abusing the corporate veil.Finally, it gives some advices that inadequate capitalization must be confirmed with caution or it will defeat the flame of investors.