Research On The Reform Of The Company's Capital System And The Protection Of Creditors' Interests

The main concept of the traditional capital system tends to protect the interest of the creditors,while ignoring the freedom of business.The concept had also been followed by the People's Court in practice.With the rapid development of technology and economy,the traditional capital system has not reached the purpose of protection.Nowadays,unless specifically required by Laws and Regulations,the 2013 revised Company Law of the People's Republic of China has abolished the requirement of the minimum registered capital for limited liability companies,one-person limited liability companies and stock limited liability companies.This amendment has achieved the balance in practice between the Safety and Freedom of business.However,this breakthrough amendment for creditor protection poses new challenges from the judiciary perspective.It shall provide supplementary responsibility for after-event supervisio.The conversion to the new concept still requires appropriate testing and adjustment so that in practice,the balance between the safety and freedom of the business can be achieved by changing over from excessive protection of the creditors'interest to reasonable protection of the creditors' interest.When applying the law,the way how the creditors shall be protected still is a major challenge post the change of the capital system.In addition,it's insufficient to resolve commercial disputes only through legislation,it's better to combination of administrative and judicial provisions to improve the administrative and judicial system.