Protection of Corporate Creditors’ Interests under Subscription System

At the end of 2013, the reform of China’s corporate capital system established the full subscription system design. This reform, however, is far from ideal. It also introduces new issues, such as bogus companies, which have a new impact on the market economy. The reason for this is that it only eliminates the minimum registered capital and first capital contribution requirements, leaving other systems that are actually matched with the paid-in system unchanged, resulting in the old and new systems forcibly grafted together being unable to adapt to each other in practice. In the real world, such a corporate capital arrangement is certain to have issues. Given the company’s debt repayment problem, which is caused by the current full subscription system, it is advisable to establish and improve the company’s credit and information publicity system, appropriately expand the application scope of the disregard of corporate personality system, and constantly improve the company’s registered capital urging system, in order to ensure the enrichment of the company’s capital, better safeguard the interests of the company’s creditors, and avoid the company’s debt repayment problem.

Research on the Perfection of Disregard of Corporate Personality in Enforcement

China's current disregard of corporate personality system has several prominent problems in the mandatory enforcement procedures, such as different identification standards, difficulty in starting the enforcement procedures, and lack of supporting systems. Perfecting the application of the disregard of corporate personality system in the enforcement process can effectively alleviate the "execution difficulty" problem to a certain extent. In judicial practice, to solve the problem of difficult implementation of the main body of the company caused by the control of shareholders' abuse of the company's independent personality, on the one hand, it is necessary to improve China's company law and other related legal systems, formulate supporting standards, and incorporate the common circumstances of corporate legal personality denial into judicial interpretation. On the other hand, we should strictly grasp the scale in the execution procedure and deny the person who abuses the company's independent personality.