On Legal Protection Of Creditors Of The Dependent Company

As a sort of modern economic phenomena , Affiliated enterprises is developingrapidly in China. Affiliated enterprises are challenging our local legal systems such ascompany law. Protecting obligees` interest of subsidiary company is a important aspectin the course of legislation of affiliated enterprise.The text is established in the study of protection of subsidiaries` obligees. After theanalysis of the causes and the situation of national law and foreign law, the articlegained some primary legal suggests. It includes 4 chapters.Chapter 1. The legal analysis of the definitions about affiliated enterprise. In orderto study the issue of the paper, the text analysed and provided several importantdefinition such as affiliated enterprise, control, controlling company and subsidiarycompany.Chapter 2. The challenge from affiliated enterprise to the obligee of subsidiarycompany. This part includes two issues. One is the analysis of the causes which obileecan be hurted. Improper associated business, improper deal to outside, increasing capitalillusively, improper surety and bankruptcy are the main causes to the loss thesubsidiary` obligee . Another is that the independent personality and finite obligation arethe implements which can be used by the controlling company.Chapter 3. The local legal system. This part introduced some country`s main waysto the problem and analysed the local state and weakness of our nation.Chapter 4. The suggestions of legislation about the issue of obligee` protection.The rule of the factual affiliated enterprise is the chief part in this paper. It include, (1)dealing with the transportation between the affiliated enterprises strictly, (2)stipulating the liabilities of increasing capital illusively, (3) managing the inter-suretystrictly, (4) entitling the claim right of compensating interest to obligee of subsidiarycompany, (5) prescribing more proper conditions to the theory "piercing the veil ofthe company ", (6) taking "deep rock doctrine" as a rule in our company law, (7)distributing the onus probandi properly in the proceeding.