Study On The Legislations Of Corporate Reorganization In China

There is no modern meaning corporate reorganization system in China, which causesthe gaps of the bankruptcy law. With the deep going of market-oriented economy systemreform, we have stepped into a new age of modern economy, in which productionbecomes more and more specialized and socialized, fierce competitions and closeco-operations coexist among companies, in which a company goes into bankruptcy willcauses chain reactions among other companies, and then causes enormous impact on thewhole national economy. Therefore, saving and rebuilding the company in dilemmas hasbecome the primary target of our economic policies. The article based on this targetappeals to establish corporate reorganization system in China. Corporate reorganization is the positive legal procedure to aim at saving the companyof hopeful revival, though it is unable to pay its debts. Theoretical foundation of corporatereorganization lies in the idea------the value of the company in existence is greater thanthat in bankruptcy. In order to avoid bankruptcy and the loss or even the social turbulence,debtors, creditors and shareholders of the companies co-operate to change capital structureof the company and readjust mutual relations according to the 'taking on loses together'principle. With the immature bankrupt procedure and unworkable judicial process, thecorporate reorganization is undoubtedly a practicable system. The article comprises three chapters, discusses how to establish corporate reorganizationsystem in China from the angle of analyzing the superiority of the system, evaluates the IIIpresent compromise and rehabilitation system in China, and designs suitable corporatereorganization system for China. With a clear thread, the author also points out thatbuilding corporate reorganization system should base on the present legislativeenvironment and use the success experience of other countries for reference at the sametime. Corporate reorganization is the result of economic development, and has become thetrend of the times. To make enterprises renewed, corporate reorganization systempossesses a series of unique legal characteristics to balance the interests of creditors,debtors and shareholders, and puts the social interest into the first place. All of theseembody the legal values of order, justice and efficiency. The conciliation system in the current bankruptcy law of our country fails to meet theneed totally of development of economy and companies, and exposes more and moreshortcomings. It's just a measure preventing enterprise from bankruptcy under thegovernment interference, which is only the superficiality of the whole reorganizationsystem. Available spontaneous enterprise restructuring is only a kind of marketingbehavior rather than a strict legal system in our society, and cannot replace the properbankruptcy law. The article holds the view that setting up corporate reorganization in China should benecessary. The substantive and procedural details of corporate reorganization systemdesign have been expounded from macroscopic and microcosmic aspects in the thirdchapter of this article. To construct the system, we should consider the system carefully,treat it cautiously, make its basic principles clearly, and adopt the legislative moderationally. Corporate reorganization system should be regarded as an important componentof the modern bankruptcy law under the big bankruptcy concept, because liquidation,compromise and reorganization are three major foundation stones, which have formed themodern bankruptcy system. Corporate reorganization is the core of contemporaryenterprise bankruptcy, and becomes the general trend of many countries in the world. Toour country, it is also necessary and meaningful.