Introduction To The Protection Of The Creditors' Interests In The Merger Of Company

The improvement of the protection of the creditors' interests in the merger of company is an important part of (2005) PRC Company Law. Compared with the past Company Laws, (2005) PRC Company Law makes a progress in the protection of the creditors'interests in the merger of company. On the one hand, (2005) PRC Company Law focuses on the protection of the creditors'interests. On the other hand, under the guidance of the principle of the promotion of the merger, (2005) PRC Company Law deletes the regulation that without clearing debts or providing guarantee, merger may not be carried out. The key to the protection of the creditors' interests in the merger of company is to entitle the right of access to information and the right to dissent to the creditors. However, the concepts of these two kinds of rights are not comprehensive according to the relevant regulations of (2005) PRC Company Law. Take the right of access to information for example. When the corporation performances its obligation of issuing a pubic notice, what level of papers should be chosen? Whether the notice and public announcement should include the limited period that is suitable for the right to dissent, and the result of not to exercise his right during the statutory period. All of these problems can't be solved according to the relevant regulations of (2005) PRC Company Law. As a result, the interests of the creditors may be damaged. This paper focuses on these problems, and tries to find out the solutions.