The Company Capital Formation System

Capital plays an important role in a company, the importance of which makes the systems of corporate capital be one core of modern corporate system. Corporate captial systems include the systems of capital formation, captial maintenance, captial variance, and captial withdrawl, among which formation system is on the basis. At the same time, formation system lays a material foundation of the independent corporate personality and provides the reliable security for corporate operation. Therefore, it is a cornerstone of the corporate systems.With the development of modern corporate law, and the combination of the two families of law, the theories of formation system are increasingly abundant. However, opinions vary in it in the academic field. From the practices, it is regulated in Corporation Law, which is important to develop the economy of China and establish the trade order since it was enacted. But the statutory capital system is strictly adopted in China, which appears rigid in the regulations of the system. Thus it sets up all sorts of obstacles in forming a corporation with investors' subscribed capital.According to above-mentioned reasons, the author researches on the main context of the system on the base of comparing the legislation in the typical counties of two families of law, and proposes to improve the present formation system in China.With 30,000-odd words, the paper includes four sections. The first section discusses the modes of investment, which consist of cash Investment and non-cash assets investment It focuses on the modes and sources of cash investment, the acceptability of the subject matter, and the feasibility of regarding commercial fame and human capital as investment. The second section studies on several legal problems related to the structure of corporate capital, which deals with the proportion of cash investment and intangible assets, and the reservation of quota system of the lowest capital. The third section studies on the liability of capital subscription, which can be divided into public law liability and private law liability. It emphasizes the category, attributes, and application of private lawliability. In the last section, the author puts forward the proposals to improve the system of capital formation, based on the illustration and analyses of three sections above.