1. See R. Kraakman, P. Davies, H. Hansmann, G. Hertig, K. Hopt, H. Kanda and E. Rock, eds., The Anatomy of Corporate Law: A Comparative and Functional Approach (Oxford, Oxford University Press 2004).
2. This view corresponds to the ‘public interest theory’. The public interest paradigm of law-making emphasises the government’s role in correcting market imperfections such as monopoly pricing and pollution. See J.-J. Laffont and J. Tirole, A Theory of Incentives in Procurement and Regulation (Cambridge, MIT Press 1993) p. 475.
3. R. Gilson, ‘Globalizing Corporate Governance: Convergence of Form or function’, 49 American Journal of Comparative Law (2001) pp. 329–358 (distinguishing between functional convergence (when existing institutions are flexible enough to respond to the demands of changed circumstances without altering institutions’ formal characteristics) and formal convergence resulting in legislative action necessary to alter the existing institutions).
4. R. Romano, The Genius of American Corporate Law (Washington, AEI Press 1993).
5. For limited liability companies, the minimum capital has been decreased from RMB 100,000 to RMB 30,000 (approximately US$3,750). A one-person company could be set up with a minimum capital of approximately US$12,500.