Legal Study On The Issue Of Creditor’s Right Investment

Creditor’s Right Investment began in China in1990s, which was known as Debtto equity in state-owned enterprises. The2005"Company Law" admits feasibility ofCreditor’s Right Investment in principle. In2011, the State Administration forIndustry and Commerce released the57orders to regulate “debt to equity”, a specialform of Creditor’s Right Investment. The assignment of credit and its propertycharacter strength the importance of Creditor’s Right. The convention of thecompany’s conception of credit will strengthen the financing function of capital andweaken the property rights of the debt guarantee function of capital. To promote thedevelopment of corporate system, Creditor’s Right investment is an inevitable trend.In consider of the risk of Creditor’s Right investment, we should design rules andregulations to formulate Creditor’s Right investment.This article is divided into five parts. The first part of this thesis starts fromanalyzing the theoretical foundation and feasibility of Creditor’s Right Investmentmainly on the perspective of civil law and company law. The second part of this thesisintroduces the history of Creditor’s Right Investment in Chinese company law system,analyzes the relevant provisions and points the inadequacies of the current CompanyLaw. The next three parts mainly discuss the perfection of rules for Creditor’s RightInvestment. The third part builds the standards for determine what kind of creditor’s right can fit the requirements of the law. The fourth part structures the process ofCreditor’s Right Investment, including the decision, assessment, delivery, andnotification. The fifth part analyzes the liability of different party during Creditor’sRight Investment, in order to secure the realization of Creditor’s Right Investment.