Exploration On The Path Of Creditors To Participate In Corporate Governance

The company’s survival and development can not be separated from the input and supportof the creditors. As important stakeholders of company, creditors input specific assets tocompany and the specific assets are at great risk. First of all, the system of limited liability ofshareholders transfer risk to the creditor. Second, the existing company law and civil law areinadequate on the protection of creditors. Finally, serious information asymmetry exists betweencreditors and company, so the interests of the creditors demands for better protection. Makingcreditors participate in the governance of the company are good for them to know the company’sfinancial position and operating conditions. Creditors may timely take measures to protect theirown interests, and it’s also conducive to the company’s internal balance.Creditors’ participating in corporate governance doesn’t mean that creditors andshareholders are on an equal footing, but under relatively weak supervision of the company’soperating. I don’t evade the problems, and directly summarize the five reasons that the traditionaltheory of company law thinks that creditors can not participate in the corporate governance of inthe first part of the article, including the theory and practice of reasons. In the first chapter, Iprovide the basis for creditors participating in corporate governance theoretically, and I mentionthe lack of existing legal system for protecting creditors. In the remaining two chapters of thisarticle, I learn practices from foreign bank creditors to participate in corporate governanceforeign bondholders participating in corporate governance, and as well as on the basis of thecombination of China’s national conditions and the institutional environment, I propose thatdesigning creditors to participate in the corporate governance system in China should follow fouraspects. I also propose scope of creditors who are appropriate participating in corporategovernance. Finally, on the basis of the research results from domestic and foreign scholarsabout corporate governance for reference, I propose specific legislative proposals on creditorparticipating in corporate governance.