A Study On The Localization Of Equitable Subordination Doctrine

From the establishment of company system-especially when merged with limited liability-it has been the first option chosen by economic organizations.To pursue the so-called scale economy,more and more affiliated companies arise.They together as a whole play an important role in the economic activities.The limited liability was treated as a magic in the beginning.However,as time went by,it sometimes is used by shareholders as a tool to infringe the interests of the company's creditors'.Legislators never stop trying to right this wrong.And the equitable subordination doctrine is one of them.For the purpose of better understanding this doctrine,this thesis is going to analysis it from four parts.Chapter one delivers an introduction about the origin of equitable subordination.As stated before,the equitable subordination comes into sight as a problem solver on the infringement by shareholders who may misuse its power and the limited liability system to the creditors of the company.Chapter two gives a deeper look on the development of equitable subordination doctrine.Since it originates from United States,it is plausible for us to start with America and then its student around the world.Except the solution of equitable subordination,Germany also has its own thought on this issue.Chapter three analyses the necessity and feasibility of introducing and localizing the equitable subordination doctrine to mainland China.If our present legal system has provided a solution to this problem,we do not need to make such a detour.Therefore,chapter three start with the analysis of tools which could be found in our present legal system.Chapter four comes to the proposals about introducing and localizing the equitable subordination doctrine which formed in two aspects: entity and procedure.