On Defective Capital Contribution

Laws and regulations of equity contribution in China are legislated withouttheoretical direction, they are based on the restructuring of listed state-ownedenterprises. But just one judicial interpretations of Corporations Law and a“Administration Regulation on the Registration of equity contribution” are far fromenough to deal with all kinds of legal issues in equity contribution, especially thedefective capital contribution. And there is no legislations about how to remedy thedefective equity, what is the shareholders’ responsibility or what the others to do toprotect their rights. As the practice of equity capital case is emerge in an endless stream,the author from the basic concept of the defective equity contribution and defectivecapital contribution, then points out the differences between them, discuss the legalvalidity of the defective equity contribution, stress the legal measures of how to avoidand how to protect. In short equity contribution is a very complex theoretical andpractical problem, the author will take further research to look forward to our equityshares on system,the perfect strategy to make modest.