The Research On The Capital System Of Chinese Companies

Since March 1st, 2014, the amendment of ‘Company Law of the People's Republic of China'(short for ‘Company Law' hereafter) has officially taken affects. The essential part of this amendment is about the company's Capital System. No wonder this amendment has aroused sparked discussion in academic field. Taking this opportunity, this article will integrate methodologies including literature review, empirical research, law and economy analysis, to study and analyse three aspects of Capital Systems in Chinese enterprises.The main body of this article consists three parts. First, focusing on "Company Capital", this article will define the concept of capital in jurisprudence context, and study the company Capital System's significance in law science. The first entry point of the analysis is the difference of the statutory Capital System, the authorized Capital System and the eclectic Capital System. The second entry point would analysis those concepts in different context of continental law system and Anglo-American law system. Second, this article will cover the history and development of institutions regarding company's Capital System in China. The article will also critically analyse the features of those institutions and comment on specific contents. The third part will provide practical suggestion regarding the characteristics and defections of current law.The regime of company Capital System has crucial impacts on the development of companies themselves as well as economy markets. This amendment of Company Law is based on the objective environment of current development of Chinese market-oriented economy. The new Company Law and its Capital System no longer focuses on companies' registered capital', significantly loosen the constraints for enterprises. Therefore, the market itself becomes the dominant of the economy development as the balance is achieved between the creditor and legal person. The great match of new economy laws and objective economic environment can better promote the development of Chinese economy and better motivate capital investment.