Research On The Application Of Equitable Subordination Rule In Bankruptcy Distribution Of Affiliated Enterprises

Compared with the traditional single enterprise form,affiliated enterprises have great advantages in optimizing resource allocation,improving profitability and avoiding business risks,so they have developed rapidly in the market economy,and their number has increased rapidly.Many of them control enterprises to make improper transactions with subordinate enterprises by virtue of their dominant position,which harms the interests of external creditors of subordinate enterprises,which has had a great impact on the existing company law and bankruptcy law.Starting from the present situation of bankruptcy distribution,an affiliated enterprise in China,this paper points out the problems existing in the legal system of protecting creditors’ interests in China’s company law and bankruptcy law.Considering the great advantages of the principle of equitable subordination in solving such problems,this paper draws lessons from the successful application experience of the principle of equitable subordination in different countries and regions,so as to construct the principle of equitable subordination which is integrated with China’s legal system,make up for the gaps in the existing legal system,and improve the legal system of protecting the interests of bankruptcy distribution and creditors in China.This paper is divided into four parts.The first part introduces the connotation and legal value of equitable subordination principle;The second part,through the analysis of typical cases,points out the chaotic situation of bankruptcy liquidation of affiliated enterprises in China,and further analyzes the problems existing in bankruptcy distribution,an affiliated enterprise in China;The third part introduces the development status of equitable subordination principle in different countries and regions,and compares and summarizes the successful application experience of equitable subordination principle in judicial practice;The fourth part,in view of China’s national conditions and the current situation of judicial practice,puts forward some suggestions to improve the principle of equitable subordination,so as to better deal with the problem of repayment order of related creditor’s rights,balance the interests of all parties of related enterprises and realize the substantive fairness of bankruptcy distribution.