On The Change Of The Capital System

The capital of the company, also it is called the capital stock or the capital share, which is invested by the shareholders who denote money as the company's legal property. The capital plays a very important legal part in the company. The capital of the company is not only the basic condition and the material base of operation but also is the evidence of the shareholders who can have the dividends, and even it protects the creditor's interests and the fame of the company . The capital system of the company is a cornerstone on which the company legislates, and it is also the core system on which the company establishes, survivals and develops. Whether the system of the capital of the company is designed well or not and in a certain degree decides the law of corporation good and reasonable or not. So to research company capital system plays a key role in the native trading .On October 27th , 2005, the tenth session of Standing Committee of the National People's Congress 18th conferences has revised "the People's Republic of China's Law of corporation" (law of corporation),the revision of the law of corporation has carried on a large scale transformation to the capital system of the company. This article introduces our country's necessary trading conditions. To transform formation in our law of the capital of the company system and the capital maintenance rule as the basic clue, and discuss why elaborating the original company capital system, after transforming the company capital system it will conform to our country's business stability, and set up a harmonious environment, whether it needs to do further transformation and how to transform and so on.