The Shareholders'Minimum Cost for Starting a Business and the False Protection of the Creditors' Interests: An Analysis of Company Capital System from the Perspective of Legal Economics

It is usually believed that company capital system has two functions: one is to ensure the basic capital for the company's efficient operation and the other is to protect the creditors' interests with the help of the company's registered capital.However,the development of company capital system world-wide shows a tendency of giving up the second function,and its implied economic logic reveals that the protection of the creditors' interests is a false function because its core function is the pursuit of the shareholders' minimum cost for starting a business.