System Of Law Firm Capital And Corporate Governance

In the process of reform, according the form that modern corporation law guides, our law firm's system predominately researches the management with corporation system. In virtue of the drop-behind situation of legislation, related statutes of Judiciary Minister don't properly regulate the capital framework and distribution system of law firm, so this obstructs the development of law firm. From analyzing the capital structure of law firm, the author regards law firm's capital is constituted with human capital, relationship capital and practicality capital, and they inosculate to take effect as well as promoting the increase of law firm's profits. The investing-lawyers, employed lawyers, administrative staffs and accessory staffs of law firm are all benefit-related persons, and they can join into the profits distribution according the related factors they invest such as practicality capital, labor skill, professional reputation, longevity and professional experiences. In virtue of the ideal that benefit-related persons cooperate in the management of corporation system, law firm should set up the evaluation system according outstanding achievement, which is quantitative with lawyer's human capital, relationship capital by their toughly, scienticific outstanding achievement standard. We should decide the profits proportion of benefit-related persons according their annual outstanding achievement. Then we should keep the profits as the origin ofshareholders' stock, thus making adjust new stock structure and re-distribute the controlling rights of law firm. Consequently, it would promote the development of law firm and each benefit-related persons can democratically manage and share the profits.