On The Protection Of The Subordinate The Interests Of The Creditors Of The Company's Affiliated Companies

With the carrying-out of Reform and Opening-up policy, the socialist market economy keeps improving. For dealing with fierce competition home and abroad, enterprises need to form jointly the enterprise groups.Therefore, affiliate enterprises appear. As a good form of enterprises, affiliate enterprises can reduce the costs of governing,producing,transaction and business negotiation. Compared to a single company, affiliate enterprises are massive and competitive. The existence of affiliate enterprises is beneficial to market-oriented economy,national competitiveness and social productivity. However, there are some social problems arising from affiliate. How to protect the creditors of subsidiary is one of most difficult tasks. For this purpose, I study on the problem of protecting the creditors of affiliate enterprises and give advice.The article includes four chapters:Chapter One focuses on the explaining of concepts such as the definition,features,sort,form and controling relationship of affiliate enterprises. This part is also the basic of this article.Chapter Two searches after the theories about the protection of creditors of subcompany. This chapter can be divided into two parts which are general rules and special rules. Each part can make up the basic of theories.Chapter Three shows that different country has different approach on protecting creditors. Many theories relevant such as Piercing the Corporate Veil, Deep-rock Doctrine, Substantive Consolidation, Concern Complex, Director as Fact and so on are spreading abroad. Those theories and approaches are helpful to our country.Chapter Four gives research on the protection of affiliate enterprises'creditors of our country. We always focus on the increase of company competition and productivity and ignore the creditors'benefit of affiliate enterprises. A lot of cases that creditors'rights are infringed by the parent company demonstrate that problems we face are serious. Therefore, how to strengthening legislations and improving the regulations will be under our consideration. For this purpose, this areticle gives some advice on the choice of protection types and legel content.