On Protecting The Interests Of The Company’s Creditors Under The Subscribed Capital System

Affected by the decline in the global overall economic situation, China has been seeing the gradual downturn of its economic growth, which will severely worsen the employment status—an already big issue in front of the government. The introducing of the thorough subscription capital system promotes the system innovation of the decision-making layer from the regulatory level, and relaxes the threshold of setting up a company as well. The requirement of the minimum registered capital system, the initial contribution rate, the period for all registered capital should be in place, and the specific legal procedural of capital verification have all been removed in the newly-amended Corporate Law, propelling the development of small enterprises and innovative enterprises, the endogenous power of economic development by the mode ofen trepreneurship creating employment and boosting domestic demand, and the relaxation of the threshold of setting up a company and the burden of investors’.The thorough subscription capital system highlights the amendment of the Company Law; however, there are still theoretic arguments on the categorization of its capital type, and there is still the lack of the evaluation on its market risks.Furthermore, the newly-amended Corporate Law will again increase the creditors’interest risk, as the protection of creditors being a consistent blind spot in the corporate system. This essay will analyze the transition of protection for creditor from the before to the after and from static state to dynamic state based on the nature of subscription capital system to find out the room for improvement.Firstly, on the protection of the creditors’ rights to know, since the subscription capital system directly affects the company credit system, the reform of the system of information disclosure will be particularly important. Secondly, on the problems of the corporate governance mechanism under the subscription capital system, the effectiveness of the creditors’participation in the governance will be a breakthrough. Thirdly, on the problems of the remedy approaches of creditors, the basic path of the protection for creditors will be formed with the litigation protection with corporate personality denial system at its core, the improvement of civil liability of defective capital contributions, the procedural protection with call-capital at its core, the preferential protection with equitable subordination at its core, the interventional protection with the right of rescission at its core, and so on.