Several Legal Issues In The Company Liquidation Of Creditor Protection System Research

Along with the comprehensive development of modern society, economicand culture, the rapid growth of company would have significant and deepinfluence for the whole society. As independent commercial subject, it may atany time have comprehensive debt relationship with all kinds of commercialsubjects while running business. It’s a must to pass through companyliquidation when dissolution or termination of the company. As one of the mostimportant legal process in the last surviving time, the group of companyliquidation shoulder the heavy responsibility, which maintains legal interests ofcreditor, shareholders and other interested party of the cooperation, keepsocial economy order stable. Considering the key role of company liquidationupon society, economic as well as company system development, whateverAnglo-American law system or continental law system, they all have preciseand detailed regulations for the company liquidation.“Company Law of the People’s Republic of China”(hereafter called“company law” item1clearly stated:“This Law is enacted in accordance withthe Constitution, in order to meet the needs of establishing a modern enterprisesystem, to regulate the organization and conduct of companies, to protect thelawful rights and interests of companies as well as the shareholders andcreditors thereof, to maintain social and economic order, and to promote thedevelopment of the socialist market economy.” This shows that benefits of thecompany creditor were protected.“Company Law” was issued on1993andrevised on1999and2005; although it strengthened the protections for thecompany creditor from all kind of law system but it looks weak andnon-operational while finally materialized in company liquidation. It deservedLegislative, Judicial administrations and Theory horizon to pay more attentionand make further efforts on discussion.The authors always meet the cases which the benefits of creditor cannotbe effectively protected during her practice. The author will come up with her perspectives and propositions on how to perfect relative system concerningprotecting benefits of creditors with combination of problem happened inpractice, analyze the inadequacy of current company liquidation system inChina which refer to current “Company Law”,“Regulation II for some questionsapplying for Company Law announced by the Supreme People’s Court on2008(hereafter called “Judicial interpretations of Company Law II” and regional lawas well as judicial interpretation for handling company liquidation.To summarize what has been mentioned above, this paper will be dividedinto three parts. First part will focus on discussing basic theoretical conceptabout dissolution, liquidation of the company and liquidation’s protection ofcreditor, thus to give clear definition for relative important concept in furtherstudy. The second part will mainly introduce and analyze the inadequacy ofprotecting creditors in current system. Final part will issue suggestions andproposals for what need to be improved. I do hope this paper can have positiveeffect to keep improvement and development progress of liquidation’sprotection of creditor.