Research On The Legal Protection Of The Company Bondholders

Since China restarted short-term financing bond in 2006,the bond market expanded constantly in scale,types,paticipants and liquidity.Especially,After 2014,China credit bond market have grown much fast than before,meanwhile,the default cases increase a lot year by year,bond defaut becomes a normal thing.Bond default case bond holders huge loss,concerning that the default loss rate is relatively high because it is quite difficult to pursuing of recovery after default.With default cases increase,the bondholders ask for more regulation protections.Though China has set up a relatively complete bond regulation system,it met kids of problems.For example,the bondholders conference decision has no mandatory,and it is difficult to hold the conference.Information disclosure is unsufficient,not timely and inaccuracy.So it is urgent to improve our bondholders protection regulation system.The paper links theory with practice,First,we set up the law theory to illustrate the creditors are more likely to be harmed compared with shareholders.Then we recall the existing bondholders protection regulation system.Based on this,we analyze the drawbacks of protection clauses before bond issues,information disclosure,bondholders conference,bond trustee,recovery process after default,then we give our suggestions accordingly.We suggest: 1.The bondholder conference decision need protection in law;2、Encourage more bond convents and cros-default term being added when bond issue.3、Hire an independent third-party such as trust company as trustee and set up trustee regime in interbank bond market;4、Strength supervision on bond information disclosure,and insure the disclosure being timely,complete and significant;5、Strength supervision on intermediary,increase the cost of violation of law.