First, the shareholders' investment in the company.
Second, it is the permanent investment of shareholders in the company. The company's liabilities must be repaid when due, and once the shareholders invest in the company to form the company's capital, as long as the company is in a state of existence, they cannot return the share capital.
Third, it is the property guarantee for the company as a legal person to bear civil liability. If the company is insolvent, the liability for repayment borne by shareholders shall not be greater than the company's capital. Therefore, the company's capital plays a vital role in the credibility of the company's foreign exchanges.
Generally speaking, the company capital in the sense of company law is the company property made up of all shareholders' contributions, and the company capital system is the sum of the provisions on company capital made by the company law according to certain legislative principles. Since the limited liability system came into being, some basic principles have gradually formed in the company law, which run through the whole process of company capital legislation and form different capital systems, namely, legal capital system, authorized capital system and compromised authorized capital system.
In view of this, the law must strictly distinguish between company assets and shareholders' personal property, and keep the company's capital relatively abundant and stable as much as possible to ensure the interests of creditors and the safety of social transactions. Therefore, the company must establish a series of principles and systems related to capital raising and maintenance. At this time, the company's capital "is no longer a symbol of the changeable enterprise's net assets in the economic sense, but has evolved into a rigid size to determine the minimum value of the company's net assets, which must be formed at the beginning of the company's establishment and maintained as much as possible during its operation."
Secondly, we should understand the relationship between company capital and company funds. Corporate capital refers to the value of the company's assets in the form of currency dominated by the company, mainly including the permanent investment of the company's shareholders, bonds issued by the company, bank loans, etc. Although the funds raised by issuing corporate bonds and loans are dominated by the company, these funds are essentially corporate debts, which are manifested as debts on the company's balance sheet. Only the capital contribution of the shareholders of the company is the company's own capital. It can be seen that corporate capital is a broader concept than corporate capital, and corporate capital is only a part of corporate capital. In the stage of establishing an insurer, it is particularly important to distinguish between capital and capital, because the company laws of most countries require that companies must have certain capital, not ordinary capital, and loans and corporate claims are not allowed as the company's capital.
Thirdly, it is necessary to understand the relationship between company capital and company assets, which are the company property used by the company to pay off its own debts. The company's assets include not only the capital contribution of shareholders, but also the property acquired by the company at the expense of assuming debts, as well as other income obtained by the company in the course of operation. Therefore, the value of company assets is sometimes greater than the contribution of shareholders. The main body of the company's assets is the company itself, and the company exercises property rights for the benefit of all shareholders within the scope defined by the articles of association.