Judiciall Determination Of Significant Shortage Of Capital

As one of the applicable cases of the independent personality system of the company,the significant shortage of capital has not been recognized in the legislation,thus limiting its application scope in judicial practice.It was not until 2019 that the Supreme People’s Court clarified the status of significant capital shortage for the first time in the Minutes of the National Court’s Civil and Commercial Trial Work Conference.However,from the perspective of judicial application,these provisions are still abstract and not operable.As a common cause in judicial judgment,it is necessary to further discuss the identification of significant shortage of capital in judicial practice before the legislative content is not perfect.Through sorting out and analyzing relevant judicial cases,this paper identifies the applicable situations of significant capital deficiency in judicial activities,and summarizes a set of judicial standards suitable for significant capital deficiency.And the establishment of this standard,you first need to define capital significantly less than the attribute "capital",should be refers to a dynamic capital can really reflect the company’s assets status,its scope should be to the people’s court to hear cases when the company has all the assets,capital expansion,maximum limit will company to ensure the situation of the lack of company capital not significant,In line with the Supreme People’s Court on the principle of prudent application of independent personality system.Second,the degree of "significant deficiencies" that should be combined with the company’s business risk existing in the process industry,the company’s operating scale,the company’s liabilities,such as comprehensive analysis,and finally,in comparing the company’s assets and liabilities,the relationship between the total cost of capital and investment,and 200% of the standard degree,as a common judgment of corporate capital significantly or not that way.These criteria summarized from judicial precedent and theoretical research will help enrich the existing research on significant capital deficiency,promote the accurate application of significant capital deficiency,and have an important guiding role for the people’s court to determine similar cases in the future.