On The Legal Protection Of The Subsidiary Creditors

As the reformation of corporations system gets deeper and deeper, corporations tends to develop into bloc companies. As the major formation of bloc companies, the parent-subsidiary corporations have been developing fast. But while the parent-subsidiary corporations make the corporations active, the negative effects appear increasingly. Among them, the problem of the subsidiary creditors' benefits damage is particularly serious. Some countries and areas protect the benefits of the creditors of subsidiary corporations by using the disregard of corporate personality theory, and the method is positive. In our newly modified corporate law in 2005, the disregard of corporate personality theory was invoked, but it is just a flexible provision and is inconvenient to operate. Therefore, the author thinks that we should use the advanced law and cases of other countries for reference, to perfect the application of the disregard of corporate personality theory to make it better in protecting the rights of the creditors of subsidiary corporate.There are 3 chapters of this article: In the first chapter, the author talks about the necessity of and feasibility of the protection of the creditors of subsidiary corporation, by analyzing law contents, characteristics and their relations of parent-subsidiary corporations and subsidiary creditors,showing the disadvantage of the over control of the parent corporation and the traditional corporation theory to realize the subsidiary creditors' rights and arguing the feasibility of the protection of creditors of subsidiary corporations from the view of Civil law and Corporate law. Moreover,by comparing the possible measures, the author points out that the disregard of corporate personality theory is feasible not only in theory, but also in practice in protecting subsidiary creditors.The second Chapter compares the...