On Legal Problems In The Protection For Creditor Under Non-bankrupt Liquidation

Liquidation system is an importation link for corporations quitting market, as well as the last legal protection for creditors’interests when a corporation is required to quit market. It has great significance of creditors, as well as the whole system of corporation quitting market nationwide. Accompany with the fast development of market economy in China, more and more corporations emerged. However, due to imperfections existing in juridical practice regarding corporation quitting market mechanism in China, various malpractices had occurred and harmed creditors’ interests frequently, which brings a lot of risks to the healthy and stable economy development, and other serious consequences. Therefore, it’s a crucial moment to perfect the liquidation system in China for maximally remedying and protecting creditors’ interests, and having been treated fairly.As the economy market system is still developing in China, current legal system about corporations is fell behind. Though some laws and regulations were involved into protecting creditors’ interests, and Corporation Law had laid a good foundation for creditors’ interests protection, they are relatively crude in comparing with the detailed stipulations of market entering system for corporations in China, let alone legal systems of developed countries. Due to that, non-bankrupt liquidation procedure is not paid much attention to in practices, sometimes even ignored. Hence, a lot of corporations utilized such legal loophole to avoid liquidation procedure or liquidate illegally. What’s more, some corporations, by taking the advantages of lack and insufficient of supervision in liquidation system, deliberately made false declaration of corporation property during liquidation, aimed to devalue, drain, hide and misappropriate corporation properties into private properties. All kinds of lawlessness not only shows the current laws and regulations embodied in legislation inadequate, but revealed serious deficiencies in the existing laws and regulations on the proceedings may appeal not strong drawbacks. This also results in practice, in the dissolution of non-bankruptcy liquidation process, the interests of creditors by deliberate or unintentional damage are common occurrences. In today’s hyperactive types of market players, the hazards of this increasingly serious drawbacks. Therefore, from the perspective of how to protect the interests of creditors of view, a more perfect company liquidation system in China, has a very important practical significance.