The Research On The Legal Problems Of The Investment In Kind

The investment in kind means the investment with the tangible property except cash,such as factory building, machinery equipment, vehicles and so on.It is not the replacement of the investment in cash with other property but an independent method of investment which is juxtaposed with the investment in cash.With the advancement in technology and the depth of the market economy in our country, more and more investment in kind is used to participate in company establishment and operation in real life.The importance of the investment in kind is more and more apparent.To avoid the phenomenon of the abuse and improper use of the investment in kind,we should clear the applicable condition of the investment in kind.Only the initial shareholders and the promoters except the persons who subscribe shares with the specific agreement can be the subject.The object of the investment in kind must have five objective elements which are certainty, existing, possibility of evaluation, transferability, and benefit for company, and certain subjective elements.Because of the non-intuitive and the complexity of the evaluation, we should ensure the objectivity and impartiality of the evaluation value by just procedure which is from the combination of evaluation,publicity, examination,agreement and change. Because of the hysterics which is the other difference between the investment in kind and the investment in cash,the problem on the ownership devolution is the other important problem.In the light of the special legal status of the company which is in the process of setting up and the relevant provisions in the property law, the ownership of the movable property is transferred when the company is founded,and the ownership of the real property is transferred from the time when the procedure on the ownership devolution is completed.Besides,to make sure the safe of the capital, the specific movable property such as shipping, motor vehicle and so on,should be forcibly asked to register. To make sure the plenitude and the reliably of the capital, the risk assignment on the investment in kind is different from the general theory on the risk assignment.The time of the risk transfer should consistent with the time of the ownership devolution.However, that the clients agree to length the time of the risk transfer. When the person who adopts the form of the investment in kind undertakes the risk that the objects have derogation or losses,his obligation on the contribution can not be excused at will,and his obligation should be treated basis that the property is variety or specified.To constraint the investor and provide effective relief, we should improve the civil liability from three aspects,the defective investor' civil liability, the other initial shareholders and promoters'civil liability and the assessor and reviewer's civil liability.