Research On The Localization Of Equitable Subordination Doctrine

At present,with the continuous prosperity and development of the economy of various countries,the form of the company has also undergone tremendous changes.From the original single company model to the joint affiliated company model of multiple companies,there is also a single field involved which has developed into multiple fields,such as Evergrande,Vanke and other traditional real estate companies have gradually expanded their business to medical,insurance,hotel and so on In other aspects,the diversification of enterprise economy has been greatly enhanced.In this transformation process the people found that the first mock exam company could not accomplish the matter,and it became a reality in the affiliated company mode.The large increase of affiliated companies has injected more vitality into China’s economic development,but it has also generated many legal issues worthy of our attention in the process of development.Among them,the unfair creditor’s right of the parent company to the subsidiary and other creditors of the subsidiary in the bankruptcy liquidation of the subsidiary need to be resolved,because the current principle of bankruptcy distribution in China cannot deny the creditor’s right of the parent company,regardless of whether the parent company has unfair creditor’s right to the subsidiary,the parent company can participate in the distribution with other creditors of the subsidiary equally,which results in the interests of the latter cannot be guaranteed.Although the principle of "piercing the corporate veil" introduced in 2005 can also regulate the bankruptcy of related companies,it has proved that its pertinence is still somewhat deficient.In order to safeguard the fairness and justice of the law,China’s law urgently needs to fill this "loophole".The equitable subordination doctrine in the United States can just fill this "loophole" for our country.It can protect the interests of other creditors by distinguishing the nature of the bankruptcy claims enjoyed by the parent company to the subsidiary company,adjusting the priority of the parent company’s problem claims,and the form of subordinated to other creditors to be paid.The equitable subordination doctrine as an effective tool to regulate the unfair claims of the parent company in the United States,has been gradually improved after a long time of development in the United States,and has been used for reference and introduced by many countries and regions.Therefore,the introduction of the equitable subordination doctrine in China has certain practical significance.This article will discuss the localization of the equitable subordination doctrine from four parts.First,it introduces the origin and development of the equitable subordination doctrine through several typical cases and theoretical disputes.Then,it expounds the specific application of the equitable subordination doctrine from the application standards,legal consequences,and other aspects.Then,the necessity and feasibility of introducing equitable subordination doctrine in China are expounded by means of contrast and examples.Finally,starting from the legislative mode,according to the conditions of our country,it puts forward some suggestions for introducing the equitable subordination doctrine into legal construction,and put forward a new proposal that we need to clarify the right subject in the category of the main elements,so as to make some contribution to the localization process of the equitable subordination doctrine in China.