A Study on the Legal Validity of Capital Reduction of Limited Liability Companies

DOI

10.2991/978-2-38476-611-6_72How to use a DOI?

Keywords

Subscribed capital system; Effectiveness of company capital reduction; Creditor protection

Abstract

The Company Law amended the capital system, and the registered capital subscription system completely replaced the paid-up system in 2013. However, the revision of the capital system was only in the formation stage. There was no substantial change to the capital system during the maintenance stage, and the relevant provisions on capital reduction remained simple and rough, lacking maneuverability. This has also led to an increase in judicial practice in cases involving company capital reduction in recent years, seriously undermining the realization of creditors’ claims. Therefore, the focus of this article is on improving China’s capital reduction system and protecting the legitimate rights and interests of creditors under the subscription system.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 3.0 International License (http://creativecommons.org/licenses/by-nc/3.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yunqian He
PY  - 2026
DA  - 2026/09/07
TI  - A Study on the Legal Validity of Capital Reduction of Limited Liability Companies
BT  - Proceedings of the 2026 12th International Conference on Digital Humanities and Frontiers in Social Sciences (DHFSS 2026)
PB  - Atlantis Press
SP  - 656
EP  - 662
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-611-6_72
DO  - 10.2991/978-2-38476-611-6_72
ID  - He2026
ER  -