On The Principle Of Equitable Subordination In Bankruptcy Distribution

In today's society,there are various forms of affiliated enterprises in the market economy society.New forms of enterprises will produce new social relations.In the process of continuous development and growth of China's market economy,new industry rules among affiliated enterprises are derived.With the continuous development of social economy and the continuous enrichment of new affiliated enterprises,new legal requirements will arise.In today's society,the diversity of relevance between enterprises has brought good development to the current society,but also brought great challenges to the law.At present,the most common situation is that there are controlling shareholders or controlling company and ordinary creditors and subordinate company in affiliated enterprises,which are different from the relationship between superior and subordinate companies,but closely linked in the interests of the company.Many large-scale companies are growing and growing.If they set up branches,subsidiaries or investment holding other enterprises,they will have decision-making power in an enterprise.If they have decision-making power,they will have disputes.In the development of an enterprise,there are some situations in which the controlling party chooses the latter between the company's interests and its own private interests by using its controlling position for private interests.When the company or subordinate company is in difficulty in operation or even goes bankrupt,the controlling party can often withdraw before other ordinary creditors,and the controlling party's creditor's rights to the subordinate company can be guaranteed and paid off in advance,Because of the disadvantages of the company's status and information access,the interests of other employees and the creditors of the company are often not paid off fairly and effectively when the company's solvency is insufficient.But between the control company and the subordinate company's management,once the power of the control company is violated,it will inevitably lead to the conflict of interests and disorder between enterprises,which will lead to the decrease of the company's operation efficiency and the increase of the contradiction between social members.In this paper,the author wants to study how to balance the order of distribution of bankruptcy property between the related creditor's rights formed between affiliated enterprises and the external creditor's rights of subordinate companies when the company goes bankrupt.On the basis of defending the independent system of corporate personality and the principle of fair distribution,the introduction of equitable subordination principle has become an important method to deal with the related claims in the bankruptcy liquidation.This paper is divided into five parts to talk about the principle of equitable subordination in bankruptcy distribution.The first part is to study the meaning and historical origin of the principle of equitable subordination,to explore the legal basis and historical significance of the principle of equitable subordination,and to provide theoretical support for the feasibility and application conditions of introducing the principle of equitable subordination in China at the academic level.The second part of this paper is about the principle of equitable subordination This part studies the application of the principle of equitable subordination in the legislation of Anglo American law system countries and Taiwan region of China,and analyzes the judicial cases,so as to learn from the experience of Taiwan region of China and Anglo American case law countries in the application of the principle of equitable subordination The third part of the article is to study the current "company law","enterprise bankruptcy law" and other legal provisions,analyze the necessity and feasibility of introducing the principle of equitable subordination in our country,make progress to study the scope of application of the principle of equitable subordination and its limitations,here is an example of the classic cases of the principle of equitable subordination in our judicial practice to demonstrate the principle of equitable subordination The fourth part of this paper starts from the legislative model,analyzes the principle of equitable subordination in China's legal construction,application conditions and program design,studies the system of distribution of creditor's rights in China's enterprise bankruptcy,analyzes the relevant problems of the principle of equitable subordination at all levels based on the actual needs,and explores the most suitable for China's society The bankruptcy distribution system of economic development.