On The Protection Of The Benefit Of Debentureholders

The original intention of debenture designed, this financial product, is for the need of corporate management. It widely utilizes idle money in the society on the basis of dispersing power of administration of the company, and will certainly repay capital with interest at the specified date, no matter profit and loss or not. However, company in the course of management can not guarantee the possibility without failure in investment, and can't guarantee the continuously good business performance either. Debenture certificate is only one promise after all. How does the company safeguard the benefit of debentureholders if the company managers can't repay capital with interest improperly at the specified date, even declare bankruptcy ahead of time?This text, proceeding from inherent characteristic of debenture and external legal environment of our country, has proposed setting up the legislative mode of the meeting of debentureholders and debenture trust based on the reference of the foreign legislation by the comparative analysis and the connection of theory with practice. Moreover, it has put forward the corresponding legal system by combining with national conditions of China.This text has discussed from four parts and some orders how to solve the problem of the protection of the benefit of debentureholders. Part one, the definition and legal characteristic of debenture will be limited, and the weak tendency status of the bondholder creditor has been proved based on comparative analysis debentureholders and general creditors and company shareholders. Part two, some systems have been introduced, such as the issuing system of debentures in the company law, disregard of corporation, shareholders limited responsibility system and internal administration structure of company. Part three, it introduces the experience of the meetings of debentureholders system, debenture trust system and debentureholders'representative system. In the last two parts, the legislation pattern suitable for our country's situations will be brought forward by analyzing the real systems and its shortages of the protection of bebentureholders in our country and by referring the foreign mature legislations. So, corporate law must introduce the system of the meeting of debentureholders and debenture trust for the debentureholders in our country, and is necessary to strengthen the issuing system of debenture in the company law, disregard of corporation, shareholder limited responsibility system and internal administration structure of company.