On Legal Protection Of Creditors Of One Company

One-man company is the latest product of developments of company law system in 20th century. On one hand, one-man company meets the urgent needs of scientific, technical and economic improvements; on the other hand, shareholders' limited liabilities can give preferential treatments to individual investor, so one-man company obtains a great deal of developing opportunities. For these reasons, many countries have modified their company law and other related legislation in order to meet the request of such situation. The appearance of one-man company assaults the basis of company institutions, and challenges shareholders' limited liabilities and companies' independent personalities. Many new problems emerge in the theory and practice of the company law, among which is the protection of one-man company 's creditors. This essay analyses the characteristics and disadvantages of one-man company, as well as the extra risks to the benefit of one-man company 's creditors, and then puts forward a serial of new legal measures drawing the experience from other countries' legislation. Furthermore, this essay raises some advice for our country's legislation under the background of present economic and legal situation. The author hopes that this essay will be useful to the establishment of the institution of one-man company in our country.This essay, 35,000 words or so, consists of four parts.The first part is general introduction of one-man company. It briefly introduces the concept, features, categories and legislation situation of one-man company, and points out that the formation of one-man company is necessary for social economical development and the traditional company law cannot prevent it from coming into being. For this reason, it is necessary to study the issue of protection of one-man company creditors.The second part analyses the theory basis of the protection system of company 's creditor, and studies the special problems existing in the protection of one-man company's creditors. Shareholders' limited liability and company personality institution are the cornerstones of the modern company system, so we must study the protection of creditors under the background of the referred two institutions. In this part, the author points out that limited liability will assault the creditors' benefit while limiting the shareholders' responsibility. Furthermore, the author concludes the common protecting rules. However, the common protecting measures cannot completely solve the problem of the protection of one-man company's creditors.The third part of this essay puts' forward some special legal protecting measures of the one-man company's creditors on the basis of the conclusion in the second part. First of all, we should modify the related legislation, such as supplementing the limitless liability of the one-man company's shareholders; and then, we should strengthen the important role of the principle of "lifting the veil of the corporation" in the legal system protecting the one-man company's creditors.In the last part of this article, the author discusses the lack of the legislation of one-man company in our country, then puts forward some advice to improve such situation. In the author's opinion, the company law of our country should expand the scope of the one-man company, and declare the legal status of it. Through such measures, the company law is able to build a protecting system of the one-man company 's creditors in order to promote the company legislation.