SHS Web Conf.
Volume 148, 2022The 2nd International Conference on Public Relations and Social Sciences (ICPRSS 2022)
|Number of page(s)
|Public Relations and Gender Equality Analysis
|31 October 2022
Analysis of the Introduction of Non-denominated shares
Peking University Law School
With the enactment of the Company Law (Amendment) Act 2021 and the public consultation, the authorized capital system began to be accepted by our company law. Closely related to it, the system of non-denominated shares was also confirmed in the draft. For a long time, China has been practicing the par value share system, which undoubtedly played a role in safeguarding the equal capital contribution relationship among shareholders, preventing the company from improperly distributing dividends, protecting the company’s continuous operation and being solvent under the framework of the early company law theory. However, with the development of the market and corporate governance, the actual function of the par value share system seems to be gradually deviated from the original purpose of its establishment. The purpose of this paper is to demonstrate the advantages of implementing a system of non-denominated shares, and also to suggest some supporting institutional arrangements after the introduction of non-denominated shares.
© The Authors, published by EDP Sciences, 2022
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