On The Convertible Bonds Creditor Protection

Convertible bond is one kind of special enterprise bond, hasattribute of the stock and the bonds, the attribute of transformation is it'score. Convertible bond is composed of the bond and the stock: The bondmeans the company of issuing Convertible bond must pay the bondinterest to possessor of Convertible bond every year; The stock meansthe possessor of Convertible bond would transform Convertible bond tostock at the suitable time.Convertible bond has characteristic of the stock's speculation andthe bond's secure, so it is received by more and more investors. In fact,Convertible bond is a kind of product of development of the humanityfinances system, since market economy developed in the modernwestern countries, the humanity finances system has experienced thevicissitude from commercial credit,bank credit to stock financing.Convertible bond financing actually is one kind of the new financingsystem innovation, it synthesized the superiority of bond financing andthe stock financing, and has the more active operation way. Convertiblebond inevitably will develop rapidly in china in the near future.However, the development of Convertible bond is not good inchina, because the harms of creditor's benefit occurs usually, that willhinder the development of Convertible bond in some kind of degree inchina.Because of my particular interest in the legal institution ofconvertible bond, I choose it as my research area. In China the lawswhich govern the convertible bond are quite incomplete and sometimescontradictory, especially in the area of the protection of convertiblebond holders. The weakness of law will be a great barrier for thedevelopment of convertible bond in China. In view of it, I want to offersome instructive suggestions for the law making of convertible bondthrough my study in the field of convertible bond. This is also a mainreason for me to write this thesis. This article mainly discussed convertible bond's meaning,thesystem foundation and all kind of measures which the convertible bondholders protected. The first part mainly described the general legalprinciple of convertible bond; The second part mainly elaboratedconvertible bond's development and the urgency and the necessity ofprotecting convertible bond holders in the modern company'sgovernment structure aspect; The third part focuses to convertible bondcreditor's basic right to look whether perfect the convertible bondcreditor's protection system is. Fourth,five,six parts mainly elaboratedanticipation protection and afterwards protection of convertible bondcreditor from the different process of convertible bond movement. Thesechapters are key point in the article, separately issued the bond ratingsystem,issuing company's information disclosed system,the investorprotected fund system and convertible bond creditor conference systemand so on, which mutually coordinated,mutually acted, constitutestogether the protection system of convertible bond creditor in china.Finally, I present my conclusion and proposal. We need convertiblebonds in our economic life. The practice of convertible bonds needslegal system to guide, which must be scientific and reasonable.Therefore, we should fasten our paces of legislation in order to makeconvertible bonds functions well in China.