Creditor Protection Legal Issues. Companies Act

This paper discusses the theories and concrete system on protecting creditors' benefits in The Corporations Law. As to the relationship between the limited liability of shareholders and protection of creditors' benefits, on the basis of the theory of multi - element benefit bodies balance protection, we should build the capital system of corporation, the limit system of shareholder's way and proportion of investment, the deny system of the legal entity's qualification, the public system, the relatively invalid principle of the corporate action of beyond power, recombination system, the system of the creditors' interference of the corporate management and the liquidation system, we realize the balanced protection to creditors' benefits. As to the relationship between the liability of directors and the protection of creditors' benefits, regard the modern corporation and enterprise administration, constitute a system bearing responsibility for third party, and establish corporate directors trusting duty and the attentive liability in The Law of Torts, so as to protect creditors' benefits. Otherwise, removing the directors' competence which operated recently in practice has become a new way to protect the creditors' benefits. There are many shortcomings which are working against creditor in the actual legal capital system, corporation public system and corporation departing and absorbing system and liquidation doctrine in our Corporations Law. In the meantime, it lacks regulations in limited liability of shareholders system and in bearing responsibility for third party. We need to connect the realistic situation, supply and perfect the...