Research On Creditors’ Interest Protection Under Company’s Subscribed Capital System

The subscribed capital system divides the capital contributions of shareholders into two parts: subscribed capital and paid-in capital.Subscribed capital is the amount of capital that shareholders promise to contribute,while paid-in capital is the amount that has actually been paid.Compared with the traditional registered capital system,the subscribed capital system is more flexible and can be adjusted appropriately according to the actual business situation of the company.It can also better protect the interests of creditors and improve the stability and sustainability of the company.However,under the subscribed capital system,the protection of creditors’ interests has become increasingly important.Due to the relatively low level of shareholder contributions under the subscribed capital system,creditors’ risks are correspondingly increased.Once the company defaults on its debt,creditors’ interests can be easily compromised.Therefore,effective protection of creditors’ interests has become a key issue in corporate governance under the subscribed capital system.In protecting creditors’ interests,multiple approaches need to be taken,including improving laws and regulations,strengthening corporate governance,enhancing information disclosure,and establishing creditor rights protection mechanisms.In terms of laws and regulations,the legal effectiveness of paid-up capital should be further clarified,and regulations on prioritizing of rights and interests of creditors should be explicitly defined.In terms of corporate governance,the board of directors should strengthen its supervision and management of the company’s financial condition,and establish sound internal control systems.In terms of information disclosure,the disclosure of information on the company’s financial condition and operating status should be strengthened so that creditors can better understand the company’s situation.In terms of creditor rights protection mechanisms,consideration can be given to enhancing the voice of creditors in corporate governance and increasing the degree of protection of creditors’ interests.In conclusion,resolving the issue of protecting creditors’ interests under the subscribed capital system requires the joint efforts of the government,regulatory agencies,companies,and shareholders.Only with the collective efforts of all parties can the interests of creditors be better protected and the healthy development of China’s corporate system be promoted.