A Study On The Legislative Problems Of The Registered Capital Of Corporation

During the practice for seven years, the weaknesses of the current Corporation Law arebecoming more and mere apparent, hence the modification of Corporation Law has been includedin the agenda. Among of the problems of this law the system of registered capital is a focus. Bymeans of Comparative Law and Interpretative Law, this paper discusses some basic theory of theRegistered Capital, the foundation and structure of it. In this paper, the author bolds the idea thatthe essence of Registered capital is stillness, its basic functions are so help the corporation obtainlegal person and to provide quantitative evidence for government's effective supervision, while itsfunctions of protecting creditors' night is not so solid and important. However, themisunderstanding of this problem inevitably engenders the bewilderments on the meaning ofRegistered Capital and its relevant systems. Hence, transferring the conception is vital to perfectthe Registered capital system. Considering the current legislation mould of Registered Capitalcannot keep up with the rapid development of markot economy, the new mould should be adoptedto furnish the development of economic security and efficiency with more room. In the meantimethe author thinks the current Corporation law has many deficiencies which result in endless illegalcases due to sham investment. Hence the legislation of the future Corporation Law shouldStrengthen the judgment and restrain of the act of investment and enforce the duty of illegal acts.Additionally the Corporation Law should make scientific and reasonable regulations on someother major problems including the proportion between cash investment and objective investment,the minimal capital and the proportion between registered Capital and loan Capital so as toimprove the ability to defend illegal acts.