Abstract: The corporate capital system under the PRC Company Law has undergone numerous revisions since its inception and was recently updated in the Amendment adopted in December 2023. This Article provides an overview of the system’s legislative modifications and relevant complementary provisions, including capital paid-up requirements, shareholder default prevention mechanisms, and share transfer regulations. By drawing comparisons between the revised provisions and their predecessors, this Article analyzes the tension behind the corporate capital system, namely between the protection of shareholder’s and creditor’s rights, and aims to unravel the legislators’ effort to balance them in the recent Amendment.

Keywords: Capital Contribution System; Corporate Capital System; Shareholders’ Right Protection