On The Special General Partner Of Creditor Protection

In the middle of 2010, Finance ministry and National industrial and commercial bureau dispatched the Notice on form transferring to Special General Partnership of China's accounting firms. In this notice, the reasons, consequences and measures of transferring are regulated. The bureau also provided the solutions of problems in transferring. This Notice reflects the developing methods of the authorities which is to transfer the forms of firms. Accompanying with the development of China's economy, China's accounting business also needs to get international. In October 2009, China's finance ministry dispatched related documents on promoting 10-200 accounting firms to transfer. This transferring is one of the most important steps in reforming strategy. From October 2009 to March 2010, the authority published 9 papers on development strategies in China's accounting firms on the web site. Their determination can be seen.As an most popular form of accounting firms in Western countries, S.G.P has been considered as a best form by authorities. This system is named as L.L.P in U.S.A. The establishment of L.L.P in US is the result of American accounting firms'evacuation of huge amount of compensation. Therefore we can conclude that the complement of forms is an significant factor of China's accounting business. S.G.P system has 2 benefits, which are"people-combined"and limited liability. This form enjoys advantages of both partnership and corporation. It also rejects features which is not suit for professional services. However, the protection of creditors becomes a severe issue from the establishment of this form. This issue gets even more complicated when confronting the reality of China's accounting business. Therefore, I believe it is necessary to analyze this issue and to give advice on this issue. This paper concludes 3 chapters.In the first chapter, I will analyze features of China's accounting firms and introduce the concept and history for S.G.P. Then the nature of the debt for the firms providing professional service will be analyzed. I will also raise the issue of different debts. Then I will raise this issue of protection to creditors on legislation.In Chapter 2, I will introduce the main measures on protection of creditors for L.L.P in Western countries and analyze reasons for their efficiency. The experiences we can use in China will be concluded.In Chapter 3, I will also bring forward difficulty of accounting firms in L.L.P and complement of China's S.G.P system. At the end of this paper, the suggestions on fulfillment for the issue on protection of creditors in China's accounting business will be proposed.