On The Conflicts And The Balance Between The Interest Of Shareholders And Creditors Under The Corporate Reorganization System

Corporate reorganization is a special reconstructive system for the corporations which are in trouble but could hold promise to revival,it has great superiority in saving corporations in trouble.Keeping the balance among all parties efficiently is not only the purpose of corporate reorganization system but also the necessary condition of a successful reorganization.As the main interest subjects in the process of corporate reorganization,shareholders and creditors are playing a crucial role in it,while interest conflicts exist in the process inevitably.If the interest conflicts can be kept balanced, reorganization would succeed,both shareholders and creditors would get two win;if not, it would fail and cause interest loss for both of them.Due to the drive of own maximum interest,and the limitation and scarcity of corporate reorganization resources,the conflicts between the interest of shareholders and creditors would run through the whole process of reorganization.These conflicts are reflected as:on the propose of reorganization application,creditors wish to exclude shareholders out of the application,but shareholders are eager to be reorganization applicants;on the design of reorganization program,each one of them wish to get more liquidation earlier than the other;on the supervision of reorganization procedure,the conflicts between creditor committee and shareholder committee are of common occurrence.In order to ensure corporate reorganization going smoothly,the conflicts between the interest of shareholders and creditors should be balanced.At the same time,the conflicts could be balanced because of the consistency of shareholders' and creditors' overall interest.On one hand,during the process of keeping the balance between them, interest balance should be taken as normal belief,then in turn,for the configuration of rights and obligation of shareholders and creditors,program with impartiality and efficiency should be proposed from the following three aspects:reorganization of initiation mechanism,of proposal design and of supervision mechanism.On the other hand,manifold methods should be used comprehensively,such as combining the advocated standard and typological proposal,combining the arbitrary standard and mandatory provision so as to achieve practical effect,which presents balanced interest conflicts and successful reorganization.