On The Registered Capital System Of Chinese Companies

The past thirty years was a golden period for the development of marketeconomy as well as the company’s capital system, as a system, it is just like a coinwhich has two sides, one of which propels the economy during a certain periods, andthe other hinders in other periods. There is always a growing balance between thedevelopment of economy and the system which rules it, and the abortion of theminimum amount of capital in the CRCS is the result of such a balance. After acorporation is set up, the capital invested when the company was set is locked. Thedirect effect is that on one hand the benefit of capital is lost, and on the other hand thecapital locked can not substantially protect the rights of the creditors. As a result, thebalance between the system and the new productivity is lost. To some extent, thereason why the Corporate Law was greatly disputed before the modification of CRCSlies not in CRCS itself, but in the minimum capital limit and the registration of acompany’s register capital in the Corporate Law. Since how much capital is requiredboth at the beginning and during the run of a company is determined by the filed thecompany lies in, the scope, management and the potential risk of the company, thegovernment should not make a uniform stipulation. Rather, the duty should be on theshoulder of market. In reality, it is quite often that a company’s volume of trade ismuch more than its registered capital volume. Therefore, we can not simply believethat the higher the registered capital volume is, the stronger is the company’seconomic strength. In addition, there is a lot phenomena of false capital contributionand flight investment in our real economic activities, which can be blamed on thecompulsive requirement of minimum amount of registered capital. In view of thegiven cases above, the modification of Corporate Law in2013perfects the CRCS,canceling the minimum amount registered capital，except ruled in special procedure ina special provision of law. Besides this, the modification also strengthens thesupervision system of capital market and perfects the credit system of the market.However, compared with those whose CRCS is advanced,there is still a distance forus to reform, such as the information disclosure, the institution of disregard corporatepersonality and Subsequent supervision market main body and so forth. Based on theabove analysis, this study，beginning with the theory and practice of CRCS, firstanalyses the background of the reform of CRCS; and then it summarizes the achievement and contents of the reform; and finally proposes some advices on how toimprove our CRCS.（CRCS=company’s registered capital system）...