On The Transformation Of Corporate Credit Basis

The traditional company law based on capital as the company’s credit, the purpose of which is to protect creditors’ interest which may be damaged by company limited liability through maintaining the authenticity and adequacy of a certain amount of capital. However, capital credit cannot protect creditor’s rights and interests, whose excessive constraint to shareholders and the company’s behavior, seriously deviated from the target of company law to maximize the value of the company. Through reflections on capital credit, academic circles gradually realize the company’s property is the real guarantee of creditors’ claims, and property credit began to gradually replace capital credit. Property credit emphasize that the company’s assets’ relative number and quality are credit foundation of companies, which give great freedom to shareholders and the company. Property credit makes help to release the shareholder investment enthusiasm and the company’s commercial activity. At the same time, through perfecting the information disclosure system, the development of company directors’ duty of good faith and third-party liability insurance system, the system of disregard of the corporate personality, creditors’ interest can be given comprehensive and feasible protection.