On The Protection Of The Interests Of Creditors Under The Limited Liability Regime

Limited liability is one of the essential attribute of the modern corporation. It is also an important principle of the legislation and it has different practical significance to its shareholders and creditors. Limited liability system at the beginning of its setting up paid great importance to protecting the interests of investors, dispersed the risk of the investors, and did not pay enough attention to the benefit of creditors in the legislation. In practice, it is not uncommon that shareholders with limited liability and legal independent personality damage the interests of creditors, due to the asymmetry of information, the creditors can not know the company’s situation in time, the interests of creditors are often unable to get relief when they are violated. Efficiency and security as the two valuable target of the company law, how to make a choice between the interests of investors and trade-offs, and how to maximize the limited liability under the protection of the interests of creditors are the main content of this thesis.This paper is divided into four parts, the first part describes the creation and development of limited liability regime; the second part summarizes the mechanisms to protect the interests of creditors; the third part analyzes the development of Chinese legislature creditor protection system; the fourth part discusses the construction of the system to protect the interests of the creditors. This paper attempts to clarify the limited liability protection with the interests of the creditors on the basis of the relationship, put forward how to construct the system under the proposed limited liability regime to protect the interests of creditors and provide a broader space for the protection of the interests of creditors.