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    What Is A Capital Contribution Certificate?

    2011/1/21 15:34:00 62

    Accounting For Capital Contribution Certificate

    The capital contribution certificate is a kind of negotiable securities that represents the shareholders' status or shareholders' rights and interests in a limited liability company.

    A limited liability company is different from a company.

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    All the capital of a company is not divided into shares, but the shareholders of a limited liability company also have their own capital contributions.

    In a limited liability company, a legal document recording shareholders' contribution is capital contribution certificate, and some scholars also advocate it as "stock list".


    The certificate of investment has the following characteristics:


    First, the capital contribution certificate is non equity securities.

    That is, the shareholders' rights enjoyed by shareholders are not created by the certificate of contribution.

    Shareholder

    Shareholders' rights are derived from shareholders' rights.

    Capital contribution

    The capital contribution certificate only records and reflects the objective condition of the shareholders' contribution, so it is different from the equity securities that set the rights.


    Second, the capital contribution certificate is negotiable securities.

    That is to say, the production and recording of capital contribution certificates must be carried out in a statutory manner.


    Third, the investment certificate is a negotiable instrument.

    Capital contribution certificate is an important voucher for shareholders to enjoy shareholders' rights.

    However, unlike certificates, certificates of stock are negotiable securities, while capital contributions are non negotiable securities or securities that are strictly restricted in circulation.


    Fourth, the capital contribution certificate is unique to a limited liability company.

    In contrast to Limited by Share Ltd, the voucher of Limited by Share Ltd's performance of shareholders' equity is called stock instead of capital contribution certificate.


    Fifth, a capital contribution certificate is a certificate issued by a limited liability company to prove the rights and interests of shareholders.

    A company cannot be issued to shareholders before it has been established.

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