Shareholders' Capital Contribution In Kind To The Legal Issues

Investment in kind refers to investment in goods such as factory buildings, mechanical equipments and vehicles other than cash. Compared with investment in cash, investment in kind is an independent form of investment. As the rapid development of science and technology and improvement of China's socialist market economy, investment in kind has been widely applied to corporate practice and establishment and operations of the companies. Besides it has played an increasingly prominent role in company capital system. The Investment in kind system has an influence not only on effective utilization and distribution of resources, but also on the balance of the rights and interests among the shareholders and the protection of the interests of the company and its creditors.This article is divided into three parts. The first part is an overview of contribution in kind of the shareholders. The author has introduced the concept and the characteristics of contribution in kind, the qualification of the objects and the significance of contribution in kind. The second part includes the evaluation and inspection of contribution in kind system. Through the introduction of the general provisions of the evaluation and inspection of contribution in kind system, combined with the legislation and company practice of the present situation, the author proposes the legislative and judicial recommendations in terms of the evaluation and inspection of contribution in kind system. The third part is about civil liabilities of the contribution in kind system. The author has analyzes the warranty liabilities for detect of the contribution in kind system and the specific ways of civil liabilities taken by the real investors.