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Essay on the renewal conception of a capital requierement



ID: <10670/1.xoqi7k>


Being an economic and a legal data, the capital contribution remains a prerequisite for the creation of the partnership agreement. In recent years, the obligation to bring such contribution has been reduced to a minimum. Does this mean it was removed from company law ? The French company law maintains ahistorical attachment to the physicality of the goods. As proof, the different kinds of contributions are ranked. According to this hierarchy, sweat equity contributor is not recognized in the share capital, and is even relegated to the rank of the smallest partner. Ignoring its economic contribution, this contribution may be considered as out of fashion. In other words, the rise of cloud economy implies reconsidering the position of sweat equity in the partnership agreement. Moreover, asserting that a company may operate without any input ignores the economic contribution of non-formal inputs, such as notoriety. This evolution of the law creates an exacerbation of the difficulties in assessing its content and implies finding new solutions. The infinite sophistication of assessment methods shall not constitute an appropriate answer to this arising issue. The consideration for the contribution made by the procurement of social rights can be adapted, as an instance by providing share purchase warrants. These securities follow the principle of indeterminacy of the value of certain goods and apprehend more satisfactorily the economic potential. Thus, it remains possible to compensate a contribution in kind with share purchase warrants.

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