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On Legal Control Of Bankruptcy Of Security Companies In China

Posted on:2007-11-22Degree:DoctorType:Dissertation
Country:ChinaCandidate:X C QianFull Text:PDF
GTID:1116360182981784Subject:International law
Abstract/Summary:PDF Full Text Request
At present, our country is at the stage of risk outbreak forsecurity companies and, the supervising and judicial departments, havingbeen carrying out constructive exploration in eradicating risks ofsecurity companies, have, in practice, found out a method of combiningadministrative treatment and judicial procedures, which takes "threesuspensions" for cases with security companies to be treated as a symbol.In order to maintain the social stability and promote the smooth andorderly development of the security market, the State has taken measuresto protect investors, which are embodied in Opinion on Customers'Security Trading & Settlement Fund and Individual Creditors' RightsPurchase. The risk treatment for security companies will result in a largenumber of security companies retreating from the market, with bankruptcyas the main channel for their withdrawal from the market. Owing to thespecial characteristics of bankruptcy of security companies, at present,our PRC Bankruptcy Law (Trial) fails to, in both procedural and naturalaspects, provide effective protection for investors. Consequently, thereexists a necessity of laying down special rules as regard to the specialtyof bankruptcy of security companies. The United States, being one of thecountries with the most developed security companies, has its speciallegal systems for bankruptcy of security companies. The bankruptcychapter of the US. Code specially stipulates rules on bankruptcy forsecurity companies, however, the chapter itself does not have a functionof protecting investors, so the US Congress passed SIPA in 1970, which,organically combines protection of security investors with liquidationprocedures, successfully solving the problem of protecting rights andinterests of investors in bankruptcy of security companies and deservesour taking it as reference in our legislature. As there are such favorablefactors in our country as we are drafting Enterprise Bankruptcy Law andthe Security Investor Protection Fund Company has been founded, the timefor enacting our SIPA has become mature. Judging from the progress of thelegislation of our Bankruptcy Law, there exists little possibility oftaking bankruptcy of security companies as one part of Bankruptcy Law,so it is necessary for our country to enact a SIPA with Chinesecharacteristics by taking experience from American SIPA, while on thebasis of summing up our own practical experience, for the purpose ofimproving the legal system for bankruptcy in our country.
Keywords/Search Tags:Security Companies, Bankruptcy, Investor Protection
PDF Full Text Request
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