Legal Protection Of The Interests Of The Creditors In The Bankruptcy Of Related Companies

Affiliated companies as a joint commercial organization, is different from a single company which has its own particularities. The difference between them is that affiliated companies have controlling or significantly influenced relations. This controlled or significantly influenced relations which exists between the affiliated companies on the one hand greatly promoted the development of the company and maximize the allocation of resources , thus largely reducing the company's operating costs and increasing the company's competitiveness in the market; but on the other hand, for the company with a profit-maximizing nature, the exists of control or significant influence of this relationship, if not regulated properly ,will in large extent cause the company to make the pursuit of improperly violation of other's rights and interests. Especially when affiliated companies have become insolvent or in danger of bankruptcy or insolvency, the relationship of control or significant influence between affiliated companies is likely to become the tools which is used to escape debt or damage the interests of creditors. So it is needed to regulate the behavior of affiliated companies by formulating relevant rules.This paper try to investigate the legal protection of bankrupt's creditor of affiliate companies through four chapters:The first chapter is basically about the basic theories of protecting the interests of bankrupt's creditor of affiliate companies. This chapter defines that the protection of creditors is the core values of the bankruptcy law and introduces the basic theory of affiliate companies. We clear that the affiliated companies has a special character from the single company by introducing the concept of affiliate companies, legal characteristics and types, and this can become the foundation of further study in the next chapter.The second chapter analyzes the specificity of protecting the interests of bankrupt's creditor of affiliate companies. On the basis of the study of the last chapter, I summarize the reasons which cause the protection of bankrupt's creditor of affiliate companies having specificity. It is because the control and subordinate among affiliate companies and widely used of corporate personality separate, affiliate companies can easy avoid bankruptcy through the transfer of benefits. Therefore, we should build special regime to regulate the phenomenon. The third chapter of bankruptcy associated with the major creditors of the legal system to protect - study of foreign lawThe third chapter studies the foreign legal systems about protecting the interests of bankrupt's creditor of affiliate companies. Because of the particularity of the affiliate companies, a series of system of a special regulation formed in states. This chapter describes the corporate veil, the principle of substantive consolidation, equitable subordination principle, information disclosure and affiliated companies directors, controlling shareholders of fiduciary duty theories and systems. I hope it can provide recommendations on improving our system.The fourth chapter analyses bankruptcy protection in the current system of china and affirming its positive significance. But the current system also has deficiencies and lacks content in some areas. Basing on the reality in China, I absorb the superiority of the system of foreign countries in order to improve our country's legal system.