On The Protection Of The Interests Of The Creditors Of The Company's Liquidation Phase

Perfect legal system of protecting the creditor's interests is guarantee to creditor's rights. China's Company Law has established several systems of protecting company creditor's interests, system of company liquidation included. Protection of creditor's interests is embodied in the whole process of company liquidation. Company liquidation has great social value, it is very important to protect creditor's interests especially. perfecting the legal system of protecting creditor's interests in process of liquidation is significant.Legal system of protecting creditor's interests in process of liquidation in our country still has some defects. Firstly, Company legislation is lagging, it doesn't pay great attention to liquidation. Secondly, liquidation system is not perfect. For example, Compelling liquidation system is not established; Judicial disbandment system is not established, Special liquidation is not stipulated. Thirdly , liquidator system is not perfect. Lastly, there are some drawbacks in practice, Some companies don't start liquidation process when be disbanded or it's liquidation is not standard. Defects in company liquidation do immeasurable harm to the development of our company system. Defects in company liquidation system have brought about many questions, which is harmful to creditor's interests and social credit. Chinese legislative body should use the experience of other countries to perfect the legal system of protecting the creditor's interests. Some provisions in China's Company Law which are disadvantageous to the creditors should be removed , and new principles emphasizing the interests of creditors should be set up. We should take measures such as establishing compelling liquidation system, establishing Judicial disbandment system , establishing special liquidation, perfecting liquidator system, drawing into the theory of piercing the corporation veil to make shareholders assume obligations, Giving judicial explanation to revoking business license, adding relevant provisions to make up liquidation system. Only by this means can we modernize Company Law, protect creditor's interests and ensure fast development of economy.