The Reform Path Of Chinese Company Capital System

Company capital system is a cornerstone on which the company legislates, itconsist in the whole process of company establishment, management and termination.As one of the core system in the whole company law, its importance is self-evident.Since have recognized the importance of company capital system, countries graduallyconducted a self-criticism and reflection starting in1950s and1960s, which strivingto make the system respond to practical business needs exactly and achieve a win-winsituation for participants. Based on this, countries expected to build a moderncompany law system to cater to competitive economy. Therefore, the essence ofcompany capital system reformation is actually a discussion about the system model.With the development of company’s legislation, three modes of company capitalsystem were formed in civil law and common law countries. Since the modes are verydifferent from one another in value or system design, selection of mode determineshow the reform of company capital directing to.This article divides into four sections. In the introduction I briefly discussed thebackground and significance of topic, and the research methods for the topic. The firstchapter examines the theory of corporate capital system, with a brief analysis of theconcept and role. Through analyzing the formation, three specific capital systemmodels were discussed in this chapter. The theoretical context of company capitalsystem is derived from the comparative analysis among the three modes, whichperform differently during the formative and operating phrase. Chapter II explores the background and content of Chinese previous reform of company capital system;Chapter III presents the plan of reformation, which exploring the path of reformthrough the analysis of authorized capital system, licensing system and compromisedsystem. A specific proposal is offered to perfect Chinese company capital systembased on the above analyses.