Research On The System Of Stock Par Value

China’s "Company Law" Article128stipulates that"Shares may be issued at parvalue, or above par value, but not less than the par value."Thus, company law not onlyretains the concept of par value of the stock, but also there is a fairly closerelationship between the stock price of the shares issued by the stock company andpar value shares. In the logic of this system, a listed company whose stock price isbelow par value can not raise funds through the issuance of new shares (becausenobody cares),company operating are likely to be on the verge of collapse due to ashortage of funds. Meanwhile,"the Shenzhen Stock Exchange Listing Rules" officiallyreleased in2012by the Shenzhen Stock Exchange provides that if the daily stockclosing price of the stocks which was only Publicly traded on the Shenzhen A shareswas below its par value through20business days (excluding stock day suspension oftrading), it would be suspended the trading.To some extent, the new regulations bythe Shenzhen Stock Exchange further exacerbated financing difficulties of the listedcompany whose stock price is below par value,and these companies desire for capitalis undoubtedly the most strong.Faced with this contradiction, can not help butprovoking that whether the existence of par value stock is necessary, especially in thebackdrop of the modernization of company capital system.To solve this problem, themajority of domestic scholars hold that in the modern commercial society,par valuestock distribution system not only can not play its intended system function, evenartificially limits the efficiency of corporate financing needs,therefore, the concept ofpar value as a historical anomaly should be abolished.This article is derived fromfurther reflection on the basis of abolishing the concept of par value,aimed atre-thinking the function of the par value,seeking financing legitimate channels ofbelow par value companies,and thinking about a viable model of the introducing stocknone par value issued system.In addition to the introduction, this paper consists of four parts:The first part is a part of the theoretical basis of the entire article, mainly introduces three different types of par value system and the relevance between the parvalue system and other company systems,based on stock par value system historicalevolution of backtracking and development trend analysis, expounds the theoreticalthinking of the resulting.The second part is the theoretical arguments which supports the conclusion ofthis article, mainly uses the method of comparative analysis, the negative effect on thetheoretical defects of par value stock system and the practice, and discusses in detailthe comparative advantages of no par value stock system.The third chapter uses the comparative method to traditional methods of foreignmature, more detailed analysis from the introduction of road, legislative models,specific regulations and so on; on this basis, this part of the study of comparative lawhas carried on the summary elaboration, discussed two different no par value stocklegislation patterns and quality, and in the form of the projection of different countriesadopt the legislative mode.The fourth part is the conclusion part of this article, the first of China’s currentpar value stock system of carding and self-examination, the need to reform our systemof par value conclusion; on this basis, the article from the legislative mode selection,construction and supporting system with no par value stock system three aspects ofspecific recommendations.