Study On The Application Of "Deep-Rock Doctrine" In China

Nowadays more and more affiliated companies appear and become the active subjects in economic activities.Between affiliated companies,it is generally divided into the controlling company and the subsidiary company.In order to meet the business needs and obtain interests,the controlling company often makes improper control and utilization of the subsidiary company through its dominant position.These behaviors can lead to damage the interests of subsidiary company and its creditors,or even to restructure or bankrupt the subsidiary company.So that in the bankruptcy proceedings,how to protect the interests of other creditors and make up for their losses are difficult problems in judicial practice.“Deep Rock Doctrine” was first established in the American court of equity,it can provide a solution to this judicial problem.The purpose of establishing“Deep Rock Doctrine” is to implement the principle of fairness and justice.Through adjusting sequence of the controlling company’s creditor’s rights to realize the fair liquidation of bankruptcy claims.“Deep Rock Doctrine” also can make up the damaged interests of the subsidiary company’s other creditors.After analyzing the system connotation and legal value of “Deep Rock Doctrine”,this paper focus on studying its construction and application in our country’s legal system.Hope that it can solve the problem of fair distribution of bankruptcy claims in bankruptcy proceedings and protect or make up for the interests of other creditors of a subordinate company.