On The One-man Company’s Creditor Benefit Protection

As one new economic organization, one-man company is popular among manysmall and medium-sized investors in the countries around the world, whose reason isthat investor can receive special protection of limited liability, and subsequently canrealize the absolute control of the company by one, so as to maximize the interests ofthe investor himself. Acclimatizing the trend of development, the Company Law inour country also introduce the one-man company system. The Company Law admitsthe legal status of one-man company in the form of special chapter, which conformsto the trend, and makes the legislation response to the great amount of one-mancompanies in the current economy in our country. To some extent, the existence ofone-man company would be beneficial to both the shareholders and the society. Thesingle shareholder can not only realize the company’s absolute control, but alsoenjoys special protection of limited liability system, so as to realize the maximizationof its own interests, which is the concrete embodiment of “Benefits First” ofcommercial law. In the point of the nature, although it is a limited liability company,one-man company, after all, is different from general limited liability company. It hasalready broke through the framework of a traditional limited liability company inmany ways, showing the divergence and variation towards traditional companytheory. Due to the uniqueness of one-man company’s shareholders, it is more likely tomake use of limited liability system to evade, and transfer the investment risk,making the creditors suffer the undue losses. Therefore, it is necessary to set up andimprove more supporting mechanism and system. How to balance the interestsbetween the shareholders and creditors become one problem need to discuss andsolve in one-man company.