The Company Capital System And The Creditor Benefit Protection

Capital system is the core system of a company law. Therefore, when China’s company law modified in2005, the capital system was arranged as the reform priority. Along with the promulgation and implementation of our new Company Law, our government pursued a certain degree of ease and innovation of this system instead of the past strict one. The corporate capital system is not only set up to protect the interests of creditors, but also conducive to the company’s sustainable development. It is important whether a company could protect better the interests of his creditors. The reason is that:First, each company is not isolated, and is among the inevitable chain of credit and debt in a series of commercial transactions, and the other reason is, if he cannot protect well the interests of his creditors, which will influent its follow-up financing. It has always been a hot academy topic how to combine the capital system to protect the creditors of a good company. For this reason, based on the reality of the new company law in China, my paper is starting from the capital system, striving to explore one path to better protect creditors.This article is divided into four parts:The first section describes the basic theory of the company’s capital and the three principles of capital system. It includes the definition of several concepts of capital, the theoretical basis of the capital system (limited liability and conflicts of interest), the three principles of capital system, and in the end of this chapter the three principles of a capital is got doctrinal reflection and scrutiny.The second section describes the protection of one company’s creditors. The concept and the legal status of one company’s creditors, and the necessary of protecting the credits are talked sequentially. In the end of this part, combining with the actual situation of China’s company law, we talked about how we protect the creditors in our country.The third part analyzes two questions. First I talked about the relationship between the minimum capital requirement and the protection of creditors, and the second is the contact between the capital maintenance principle and creditors’ protection. In the end, I compare China’s Company Law with the United Kingdom Companies Act.Last, on the defect of our company law protecting its creditors, I list some proposals on how to improve our company law, focusing on the protection of the company’s creditors in our country.