Research On Legal Regulation In Equity Contribution

Equity contribution has been of great concern for a long time by researchers, becauseof its unstable fluctuation in price and complicated legal relations. Actually, this kind ofinvestment had been much applied in business before it was legally confirmed by authorities.With the promulgation of The Provisions of the Supreme People’s Court on Several Issuesconcerning the Application of the Company Law of the People’s Republic of China (III),equity contribution finally got legal confirmation and when it comes to practice, there arelaws to abide by. However, with the overwhelming of equity contribution, the capital bubbleresulted in cross-shareholdings within companies and corporations gradually came out to bea serious problem. In addition with lack of specific and systematic implementing regulations,the mechanism of equity contribution still need to be further standardized.By application of related principles of company law, contract law and property law,proceeded with the legal basic of equity contribution, this thesis first analyses the basis ofequity contribution, assets credit theory, and then discuss the eligibility of equity being akind of intangible investment, out of nature of equity itself. Chapter II deeply analyses thelegal relations of equity contribution, in particular the subject, the object and the problemof cross-shareholding brought in. In Chapter III, the thesis propounds pieces of regulatingsuggestion for procedural practice of equity contribution, price evaluation, assetcertification and information disclosure.Although equity contribution has acquired legal confirmation, cause of lack ofcorrespondingly specific and thorough mechanism, it still need to be further regulated andguided in business practice to minimize risks that will be brought in. The thesis is aimed to workout some useful suggestion for advancing improvement of equity contribution on the basis ofprevious harvest, hoping that in the near future there would be a series of corresponding andsophisticated acts and laws, which could make the practice of equity contribution more orderly,to perfectly fulfil its purpose of prospering business and national economy.