DYSFUNCTIONALITY OF SHARE CAPITAL
Abstract
Share capital is deeply rooted in accounting. The institution of share capital is currently criticized in the legal community. This is also the aim of the article – to show the dysfunctionality of share capital and show the need for reforming the proprietary structure of companies. The author used a critical analysis of the literature on the subject and legal acts as well as a comparison of designed solutions and drew attention to the failure of share capital to perform the guarantee function, which until recently was considered to be the basic function thereof. The article also contains a description of the disadvantages of share capital that make it difficult for companies to operate. The author also outlined earlier, failed attempts at reforming share capital. Many of these proposals were included in the new model of a company without share capital – a simple joint-stock company. The focus was on discussing the
features thereof that replace share capital. It addresses the calls for a reform of the company’s proprietary structure. The author also discusses reforms of share capital in other countries, and in this context, he indicates the need to reform the proprietary structure of the company to be able to compete with other legal systems of companies within the framework of the EU.
Keywords:
share capital, simple joint-stock company, assets structure reform, guarantee function, company modelDetails
- Issue
- Vol. 1 No. 30 (2020)
- Section
- Research article
- Published
- 2020-06-30
- DOI:
- https://doi.org/10.19253/reme.2020.01.002
- Licencja:
-
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