Associate Company Bankruptcy System Of Protection Of The Interests Of Creditors

The modern market economy rapid development, but the development of thecompany, is also facing risks and challenges, the company in order to resist the risk,reduce costs, always will continue to expand the scale, in this case, the AssociateCompany as the emerge as the times require favorable enterprise form a, andcontinues to grow and develop. From a legal point of view, each member AssociateCompany are independent legal liability, but its interior has a complicated connection,caused these problems to put forward the challenge to the law. Especially thebankruptcy of Associate Company, will produce many different from a singlecompany’s problems, and these problems will seriously damage the interests ofcreditors. China’s current laws lack of specific regulations on these issues, will facethe problem of bankruptcy of Associate Company as a single company bankruptcyproblems to solve, the limitation, the necessary, through special legislation to protectthe interests of creditors in bankruptcy of Associate CompanyIn this paper, through the five sections protection Associate Company bankruptcycreditors:The first section is basic theory of Associate Company and China’s legalregulation on it. This section mainly introduces the basic theories related to theAssociate Company and China’s legal regulation status of the Associate Companyconnected transaction. For the definition of Associate Company, China’s law does notclearly defined, the academic circles have not unified answer. Associate Company as a favorable association of enterprises, it has its own economic value, but its drawbackscan not be ignored, therefore the law needs for its regulation, tax law, accounting law,securities law, the China’s anti-monopoly law, company law is regulation of theAssociate Company, but there are some the problem, set the stage for our study.The second section is the company law and bankruptcy law on the protection ofthe interests of creditors. The need for business and cooperation between companies,need to borrow to expand production, it will produce a creditor. Protection of thecreditors of the company law of our country has its merits, but there are also someshortcomings, such as lack of legal basis significantly in the protection of creditors ofthe Associate Company. The legislative purpose of bankrupt law is equitablerepayment of creditors, the bankruptcy law in China is to protect the creditors by asingle company, the provisions on the protection of the bankruptcy of AssociateCompany creditors rarely. This is the legislation needs to be improved.The third section is the special protection of the interests of creditors in thebankruptcy of Associate Company. As for Associate Company affiliation betweencontrol--and the presence of the independence of corporate personality system, sothat the interests of creditors of the company easily infringed, the infringedperformance is various, mainly of bankruptcy fraud, false bankruptcy and so on, it isbecause of the existence of special protection for the interests of the creditors of theAssociate Company, need law the regulation.The fourth section is the main legal system to protect the interests of the creditorsof foreign bankruptcy of Associate Company. This section mainly introduces theregulation on Legal Problems of the bankruptcy of Associate Company when theUnited States, Germany, France, Japan and Taiwan region. The United States formedthe system of disregard of corporate personality, equitable subordination doctrine,substantive consolidation doctrine in the precedent, every rule has its suitablecondition. German stock companies act as special forms of Associate Company underregulation, provides a unique way to solve the debt problems of Associate Company,also provides for the director of Associate Company and the responsibility ofcontrolling shareholders. The French form the concept of fact directors. Japan also specifies the content of the duty of loyalty, the information disclosure system ofparent-subsidiary corporation, Associate Company, director of audit and supervision.Taiwan in reference to the German law also has its own development, formed arelatively complete Associate Company law. These laws have different places in theregulation of Associate Company, but all have different approaches but equallysatisfactory results role.The fifth section is the perfection of the bankruptcy legal system of AssociateCompany advice. Since the laws of our country have defects in related systems tosolve the bankruptcy of Associate Company law problem, has not yet formed astandardized system perfect. This paper mainly through the improvement of companylaw, bankruptcy law, the securities law to improve the protection of the creditors ofthe Associate Company.