comparative European Union English original

Creditors Versus Capital Formation: The Case Against the European Legal Capital Rules

Classic comparative critique arguing that European legal-capital rules are costly and weak creditor-protection devices compared with more targeted protections.

Brief English Introduction

Enriques and Macey give students a sharp challenge to the assumption that minimum capital and capital-maintenance rules efficiently protect creditors.

Use It For

Use it to compare China’s renewed contribution discipline with the long-running European debate over legal capital.

Teaching Notes

Ask students whether China’s registered-capital system performs functions that the EU legal-capital critique underestimates, such as public registration and business-credit signaling.