Study On Prevention And Contorl Of The Risk Of The Creditor's Rights Investment

As the development of the company practice, company credit basis changes gradually from the capital credit to the assets credit, and this change causes the reform of the capital system. Under the guidance of assets credit concept, the funding forms which could be accepted by companies are increasing gradually. In this large backdrop, it became a hot discussion whether the creditor's rights might be used or not. Finally, the mainstream viewpoint of academic holds the positive attitude. However, because of the complicated factors, the creditor`s rights investment would produce many kinds of risks. If it is not controlled appropriately, it would hurt the interests of investors, corporations, and the third party who would deal with the corporations, and even lead to the shock of capital markets. Therefore, the prevention and control of the risk of the creditor`s rights investment is worthy of particular concern. However, in our country, this question is not thorough studied meticulously by academic.Based on the present state, in the analysis of the fruits of predecessors, the author would argue further the prevention and control of the risk of creditor`s rights investment adopting comparison method and economic analysis of the comprehensive approaches, and wish to have some harvest.There are four parts in this paper, except introduction and epilogue, totally about 30000 words.The first part is the simple elaboration of the creditor`s rights investment. The author makes a brief introduction of the creditor`s rights investment from five angles, for example, the concept, theoretical basis, conditions of physical capital, legislations of different countries. The paper adopts general concept to the creditor`s rights investment, not only including the credit to the company, but also the credit to the tired. And the author believes that the creditor`s rights investment is a practical need under the guidance of assets credit concept. Foreign legislative practice has the model meaning to our country, and our current legislation is inadequate to be improved. The second part is the analysis of the risk of the credit to the target company investment. the risk is mainly the really existing of the creditor`s rights,and the risk exist during the restructuring of the company, when the creditor decides to transforming the creditor's rights into stock. Also, the prevention and control of the risk will be explore in this part.The third part is the analysis of the risk of the credit to the tired investment. After the study and analysis on the nature and the different types of the creditor`s rights, the author reduces three major types of risk of the credit to the tired investment: really existing of the creditor`s rights, producing risk in the process of contribution, the credit to be reimbursed. Categorizing these many risks can help to understanding and controlling it, put forward a clear objective countermeasure of the risk.The fourth part is about the prevention and control of the risk of the credit to the tired investment. This part is most important and innovative. Against the risk of the credit to the tired investment, the author suggests different countermeasures, just such as notification mechanism, voting mechanism, assessing mechanism, validating mechanism, guaranteeing mechanism, insuring mechanism and transferring mechanism and exiting mechanism. In these countermeasures, the first four must be used as mandatory provisions of the law; the last four can be adopted by parties under details.