Research On The Legal System Of Shareholders' Physical Contribution

Physical Contribution and Cash Contribution are both important functions for fundraising. There are many advantages comparing Physical Contribution with Cash Contribution. This is reasonable and inevitable, considering the influence of leading efficiency value in current company law. Nevertheless, it is comparatively difficult to estimate the value of the subject matters or clarify the responsibilities during the process of Physical Contribution. Also, the forms of goods vary as there are limited forms of cash. Therefore, funding by goods can be misused by investors and be causing problems. The legislation on investment of objects in our country is over simplified and principled. Apparently, the legislator is relatively conservative in law making. A reasonable explanation is that the possible practical issues can be avoided by constraining the way of investing of goods. As the economy expanding and science-technology developing, there are more and more shareholders are providing goods to start companies. The subject matters involved have been diversified, the policies have to be improved and opened. The relevant legislation in our country is no longer developed enough for current economy. Thus, company law and other related legislator should be much more concerned to improve the rules of Physical Contribution.Most foreign developed legislation allows all the property and rights on property which are applicable to subject matter conditions. Meanwhile, the valuation system should be established and the responsibilities should be identified so as to regulate the behaviors of Physical Contribution. In summary, to establish and improve the legislation on Physical Contribution, we might tend to relax the restrictions on the subject matters and legalize on responsibilities of the objects investors. Also, there are some other ways such as subject property, after the event's establish and building valuation system on Physical Contribution.