Study Of Corporate Capital System

Capital is the material fundament of any type of corporation. Security and efficiency are two major values contained in corporate capital system. Due to different value preference, corporate capital system can be classified into three types: statutory capital system, authorized capital system and eclectic capital system. With an original intention to maintain security, statutory capital system has been adopted in Chinese Corporate Law. However, the present corporate capital system fails to meet the needs of new situation and harms the efficiency of corporate operation because of the changes that taken place in economic field these years.With 'balancing between security and efficiency value' as its clue, this article studies the corporate capital system from both theoretical and practical aspects. Through the comparison of stipulations concerning corporate capital system laid out in American and German corporate law, the author suggests that the present corporate capital system in China should be amended, i.e., should be changed from statutory capital system to eclectic capital system.