Chinese Company Law Mandatory Verification System

Verification system is not a new system in academia, however, since there are differences in politics, economy, culture and legal traditions among different countries, their verification systems are different. The verification system under Company Law of China is a mandatory system, which makes it a unique legal system with Chinese characteristics. Base on statutory capital system of China, the mandatory verification system is set up to protect the interests of creditors.Due to the frequency of false verification, surreptitiously withdrawn of funds, and moral crisis of some CPAs in practice, the credibility of the verification system has been declining for some years and there are doubts on its existential value. Therefore it has great importance and practical significance to study on the tendency of the mandatory verification system and its improvement approaches.This thesis has five chapters. The first chapter introduces the creditor protection theory and the verification system. The second chapter states the history of the verification system in China. The third chapter investigates the status of the verification system in China. Chapter Four makes a comparative study of verification systems. The last chapter discusses on the tendency of the mandatory verification system and its improvement approaches.