Research On The Company's Obligation To Notice Capital Reduction

As the most dynamic subject in the market economy,the company's capital is often in a state of change,so it is common for companies to reduce their capital.Capital reduction is the act of the company to reduce registered capital in accordance with the actual situation of its business operations.When the company reduces its capital,it will not only involve changes in the operating basis of the company's legal person's property,but also affect the interests of creditors.Therefore,the status of the company's obligation to notify it of capital reduction is particularly important.When the company violates the obligation of notification of capital reduction in the process of capital reduction,the company's capital reduction may adversely affect the interests of creditors.Capital is one of the cores of the interest balance.Balance means protection and relief.How to protect and relieve the interests of creditors when a company breaches its obligation to reduce capital has become the core content of this article.Throughout China's legislation on the obligation to notify companies of capital reductions,although the company's obligation to notify companies of capital reductions is stipulated,China's related provisions on the obligation of capital reduction notices are too decentralized andconcise,and lack of a complete system for the obligation to notify capital reductions.It's difficult to operate,problems arise in practice.The initial purpose of the provision was to protect creditors,but the company was too powerful in reducing registered capital and lacked corresponding restrictions.China's Company Law only requires companies to notify and announce creditors within a certain period of time,and has not determined the specific content of this notification obligation,and after notifying creditors,creditors have no right to challenge the company's decision to reduce capital;although creditors have the right to require the company to pay off debts or provide guarantees,such provisions are vague and not operable.The settlement of debts and guarantees are not clearly defined and there are no corresponding safeguards.The law is imperfect,and shareholders or directors may use this loophole to act in their own interests,thereby violating the interests of creditors.The inadequate protection of creditors' interests directly affects transaction security,dampens investor enthusiasm,and forms a large number of litigation disputes,especially when the company deliberately fails to notify creditors or replaces notices with announcements.Therefore,this article is based on the company's capital reduction notification obligations,in-depth study of the theoretical basis of capital reduction notification obligations,a comprehensive analysis of the extraterritorial law of capital reduction notification obligations,and comparing them with the specific systems of capital reduction notification obligations of various countries to draw lessons from them;meanwhile,this paper discusses the deficiencies of China's related legislation,studies the specific content of the capital reduction notification obligation,the types and consequences of violations of the capital reduction notification obligation,and puts forward some suggestions for the legislation of our capital reduction notification obligation.The first part of this article explores the theoretical basis of the notification of capital reduction notification.First,it analyzes the meaning of the notification of capital reduction notification,and studies the theoretical basis of the notification obligation.On this basis,it is useful for reference.The second part discusses the specific content of the notification obligation,from the subject and object of the notification obligation to the method,content,and carrier of the notification obligation.The existing problems have put forward opinions and suggestions;on the basis of this,the third part of the article analyzes the types and consequences of violations of capital reduction notification obligations in detail,from the types of violations of capital reduction notification obligations and their behaviors on capital reduction.The effects of effectiveness,creditors 'remedies,and the liability of shareholders and directors' executives have been thoroughly explored,so as to comprehensively construct and improve China's obligation to reduce capital notice,establish a scientific and reasonable relief system,and make creditors practical.Guarantee without affecting the normal operation of the company.