Research On The Defects Of The Company's Capital Reduction Progra

One of the most important systems of company law is the company capital system,which goes hand in hand with the company governance system.In the process of corporate governance,the process of capital formation,determination,operation and capital withdrawal has a great impact on the company's solvency and capital credit.The most common form of corporate capital change is to increase capital and reduce capital.The company's capital reduction is determined independently according to its own production and operation activities,but the company's capital reduction has a great impact on the company,its shareholders and creditors.It is precisely in this way that the company's capital reduction procedures in the legal provisions of the Company Law can neither be too strict nor too loose.Nowadays,the procedural requirements of the company law in our country are mainly embodied in Article 177 of the Company Law and other legal provisions.In the process of capital reduction,legislation is not rigorous and meticulous enough,so in the judicial practice,shareholders often reduce their capital when the company has creditors 'rights and has not been liquidated,and fail to fulfill the procedures required by the company law,such as not informing the creditors of the company or informing the procedure is illegal,which leads to disputes between creditors and the company and its shareholders.Starting from the understanding of the concept and classification of company capital reduction,this paper studies the causes of the defects in the process of capital reduction in judicial practice,the effectiveness of capital reduction after the defects and the liability after the defects,and then puts forward legislative suggestions on the process of company capital reduction,with a view to improving the legal system of the process of company capital reduction in China.