On The Relief Measures To Protect The Interests Of The Creditors In The Liquidation Of Company

Corporate liquidation is to terminate the unfinished transactions after a company is dismissed, thus to have the legal person status of the company to disappear. The key problem in corporate liquidation is to protect the interests of creditors, which relates directly to the order of the whole social market economy and the society credit. In analyzing the issue of corporate liquidation, this paper first presents the concept of corporate liquidation, and then discusses the cause and classification of liquidation theoretically. The legal procedure of corporate liquidation is introduced, and then the legal status of company in liquidation is elaborated with regard to theory, lawmaking and judicatory practices, and emphasis goes to how to liquidate the capacity for rights and capacity for conduct of the company and its civil legal conduct utility beyond its operation range. As to the candidate of corporate liquidator, the problem is presented that lawmaking and justice are disjointed in administrative liquidation, thereafter. The legal status of corporate liquidator is similar to the director board of company operation, but its right is limited to transaction liquidation, and is obligated to be loyal and accountable to shareholders and creditors, otherwise it must shoulder the relevant legal responsibility. In corporate liquidation, there are fewer systems in China to protect the interests of creditors, and in most case the related laws are empty and not operative, and many instances that violates the interests of creditors occur frequently, for example, shareholders don't perform liquidation after the company is dismissed, the property is distributed illegally to shareholders after creditors get payments, the creditor's rights exceeding time limit are not registered by taking advantage of legal vulnerability such as time limit for applying creditor's rights, the business license is suspended by the industry and business administration due to missing annual inspect and thus to evade company debts which violates the interests of creditors, and so on. By launching legal analysis to typical cases in which the interests of creditors are violated, this paper offers some suggestions to relevant legal remedies, and puts forward some lawmaking thoughts.