Protection Of The Interests Of The Creditors Of The Merger

Company merger plays a very important role for the company as well as thedevelopment of the socialist market economy. It not only expands the size of thecompany and the centralization of capital, but also promotes the upgrading of thecompany’s management efficiency. In the merger process, it often involves changes inthe company’s organizational relationships, and a series of legal consequences, forinstance, the transfer of company’s credit, debt and property. These will be more orless affect the interests of the creditors of the company. Therefore, it is necessary toprovide appropriate protection for the interests of creditors during the companymerger.In China, company or companies shareholders, directors in order to secure theirown interests, they often take deception, concealment and other means to damage theinterests of creditors in the merger process. Frequent cases like this have brought greatdamage to the interests of the creditors of the company. Therefore, it requires aprotection mechanism for the interests of the creditors in the company merger, whichincludes the programming on the company merger to protect the interests of creditorsand other legal regulations or measures. However, there are still many existingproblems in the protection mechanisms for the creditors in the company merger,resulting in inadequate protection for the creditors in the company merger.Therefore, it needs to constantly improve and perfect the regulations and othermeasures for protecting the interests of creditors in the merger. Not only focus on theefficiency of the merger, but also give adequate protection for the benefit of creditors,hence to seek a reasonable balance between efficiency and fairness. Combined with the legal provisions and relevant experience of this issue, this paper elaborates andanalyzes the protection issues for creditors in the merger, in order to find a new wayto perfect the protection mechanisms for the creditors in the company merger.In this paper, the main structure is as follows: First chapter describes the basicconcepts and features of the merger and the creditors in the merger; Chapter twoanalyzes the theoretical basis and the scope of protection for the interests of thecreditors in the merger; Chapter three gives an elaboration and analysis of protectionmechanisms for the interests of the creditors in the merger, mainly includes theprotection of the creditors in the merger program design, the legal consequences offailing to fulfill the creditor protection program, creditor self-relief measures,exclusion of shareholders’ limited liability, responsibility of board members to thecreditors; Chapter four reviews and proposes recommendations to the protectionmechanism for creditors in the Chinese company merger.