The Research On The Abolition Of Minimum Registered Capital System Reform In China

The minimum registered capital system has the functions about maintaining thetransaction security and protecting the interests of creditors, but the credit crisisoccurs in the company frequently which results in the minimum registered capital isnot in compliance with the legislative intention. On the other hand the minimumregistered capital is set a higher threshold for the company, hindering competition andeconomic development of the market. Since the company system was introduced, theminimum amount of the company’s registered capital has being limited, the newmodification of company law abolishes the minimum registered capital system in agreat degree, which can be described as a major innovation in the company’s capitalsystem reform. This article conducts a research in minimum registered capital systemon the corporate legal basis: the rational economic man, efficiency value,Autonomous nature and the stability of law, the credit of company, to demonstrate thelegitimacy of the minimum registered capital system abolish. Through analyzing thecompany’s credit function,this paper can draw the following conclusions: Companycredit system attached in the assets and the company’s net assets just has the ability topay off debt. Only on the basis of credit assets, building capital system could achievethe target about protecting the interests of the creditor. On the other hand, the paperprovides practice basis of legislation for our country greatly to abolish the minimumregistered capital system by comparing the legislative situation of the registered capital system among the world leading companies. In our country,abolishing theminimum registered capital system has a positive significance, also is the inevitableresult of the development of company systems, which not only reduces the thresholdof market access, helps to stimulate investment, improve the efficiency of theoperation of the company, also provides a new perspective for legislation work of thecreditor benefit protection. The key point of legislation of company capital systemprotecting the interests of the creditors should be transferred from capital staticregulation in the establishment process to dynamic regulation of assets in theoperation process for effectively ensuring company’s credit ability and the securityassets. How to further improve the creditor benefit protection mechanism under theexisting corporate capital system, the paper suggests that implementing creditregulation to the company and making the company and shareholder consciouslyabide by the trading rules by establishing and perfecting the credit system；throughstrengthening the director personal liability to improve the company autonomyability；Through restrictions of the surplus distribution of shareholders to maintain thecompany’s net assets level; Through the improvement of the system of legal personpersonality denial to realize litigation relief safeguard for creditors’ interests beingviolated.