comparative United Kingdom / European Union English original

Legal Capital: An Outdated Concept?

Comparative working paper questioning whether legal capital remains a useful creditor-protection concept and surveying alternative mechanisms.

Brief English Introduction

Armour gives a concise comparative framework for asking whether capital rules protect creditors directly, indirectly, or mostly symbolically.

Use It For

Use it beside Enriques and Macey when asking whether legal-capital systems should be tightened, liberalized, or replaced by solvency and disclosure rules.

Teaching Notes

This reading helps students avoid treating China’s 2023 five-year contribution period as the only possible response to creditor-risk concerns.