Multinational Bankruptcy Protection From Its Creditors System

The bankruptcy of multinational corporation (MNC), in which creditors can hardly be fairly protected, is a complex problem in the international intercourse of economy. Aiming at the problem, this paper carefully researches various theories and practice of the settlement in different countries. Then, this paper analyses the tendency of this problem, presenting the idea that WTO should play an important part in it. This paper is divided into four parts.Part one is preface. The legal features of MNC and the special legal risks of its bankruptcy are discusses in this part. These special legal risks make it different for the creditors to be equally paid.Part two researches various theories and practice of protecting the rights of creditors. A quantity of countries have found solutions to this problem. As for the creditors get preferential payment abroad, there are three typical solutions among which the American way can be used for preference for China. As for the superiority of the related corporation as the creditors, the author analyses the theory of subordination, represented by the principle of faimess from the case "Taylor v. Standard Gas & Electric Co.", offering some suggestions to the legislation of our country. As for the bankruptcy caused by the full control from parent company, this paper introduces two ripe ways: piercing the corporate veil and special legislation, pointing out that piercing the corporate veil can be preference for Our COuntry.Part three researches the influence of bankruptcy effects beyond territory the approval of which is paid special attention. The paper introduces two theories about it: the principle of universality and the principle of territoriality, then analyses the practice of the UK, Japan, Germany and the U.S.A, coming to the conclusion that China should learn from the U.S.A.Part four is about the solutions to the protection of the creditors. Firstly, the paper introduces two tendencies of the solutions: regional cooperation, presented by the EU "Regulation on Insolvency Proceedings", and regulation through international legislation, presented by the model act of UN, with the conclusion that both of them can not solve the problem. Then, the author points out that WTO has gained the advantages in founding DSB of bankruptcy of MNC, and offers some advice.