On Capital System Model With Its Shareholders Funded System Reform

Corporate capital is the core of modern corporate system. The capital means the independent existing of corporate property, which is the material basis of a running company, the condition for the shareholders to acquire the rewards, as well as the guarantee to the corporate debts payoffs. Therefore, all countries pay serious attention to it, and, owing to the different culture, justices system and the sense of social morality, three corporate capital modes have been brought: legal capital institution, authorized capital institution and compromised capital institution. This paper tries to analyze the modes by the means of compare and historical analyses.What's more, by studying the regulation efforts, we get the conclusion that, for the time being, it is better for us to do like German, France and Japan. We have already had the rescores to develop legal capital institution and make it more flexible, which is good for keeping deals safer. Lastly, this paper gives some definite advices on the investment of shareholders.