Research On Protection Of Creditor’s Rights In Corporate Division

Corporate division is an important strategy of modern companies, which has been widely adopted by countries for handling the market competition and organizational structure in order to improve the efficiency of management. It has various patterns and complicated contents that make profound changes on corporate personality, assets, and interests etc. And this change will be directly related to the interests of shareholders, creditors and other parties. Especially a great influence on the creditors, they are in the weak position that their interests are often harmed by the shareholders and management of the divided company. Therefore, how to protect the creditor’s interests is an important issue in the corporate division.In commercial practice, the interests of creditors are full of uncertainty on account of unclear judicial understanding of corporate division operation. Though the Corporate law has increased in the legislative purpose to protect the interests of creditors, but there are some unreasonable and omission in the specific design of the system. So how to improve the relevant system and balance the interests in the company division is an important task we need to solve. This paper mainly consists of four parts.The first chapter is mainly to introduce the company changes impact on the creditors’ interests in the division system. Firstly, we must fix scope of corporate division, and expounded legal basis to protect the interests of creditors in company division. Finally proposed that protection of creditors should be modest for controlling the balance of interests in company.The second part is mainly focus on the study of creditor’s interests which are protected by company law of foreign countries.The third part is to discuss the situation of creditors protection on corporate division from the legislative and judicial practice separately in our country, and point out the problem.The fourth part is to put forward some advice to improve the corporate division system in our country. Firstly, pointed out that the protection of creditors should be in accordance with the institutional arrangements of discrete type to accommodate the complexity and diversity of corporate division. Secondly, the protection of creditors should attach importance on the procedural safeguards, and make directors should take responsibility to creditors. Finally, propose some suggestions to improve the system of joint and several liability.