Creditors Protection When The Failure Of Company Set-up

The protection of the creditors has always been an important area in company laws. The protection could be carried out in different phases, in respect of related phases the company is in and the according legislations. There would be a long and complicated set-up process before a company is officially built, and this process is a relatively particular phase that every company would face. There would be two ultimate results: the success and the failure of company set-up. This dissertation concentrates on the discussion of protection of the creditors in the failure set-up phase.Protection of the process of Company set up failure of creditors, it is one important question issue that often neglected. Only considering the creditors of the company set up success of the company without considering the interests of the failure of the interests of creditors will be against market transactions security and the balance of interests of all parties, while easily cause some market players improper benefit.,contrary to the principle of equity markets. Therefore, we must pay more attention to the protection of creditors of company set up failure. The set up of failure can be divided into two cases, the ineffective company set-up and the flawing company set-up.And there are 4 types of creditors in the process of company set up: the set up of the process of formation of the sale or lease or contract creditors, the incumbent contract creditors, Warrants contract creditors and infringement. According to the ineffective company set-up and the flawing company set-up, in the light of foreign-related cases and legislation theory, and the combination of China's current law, the company set up failure to protect the interests of creditors views to strengthen the protection of creditors, improve Chinese companies to establish a system for promoting the socialist market economic prosperity.