Extraterritorial Jurisdiction Of Cross-border Insolvency

In the last few decades, with cross-border insolvency cases largely appearing, cross-border insolvency causes abroad attention of the international society. There are many difficulties in dealing with cross-border insolvency cases, because the multination corporations with huge size generally involve in complex relations, otherwise, most debtees and asserts in insolvency locate in different countries.There are many legal problems in cases of cross-border insolvency, but the key issue is the extraterritorial jurisdiction of the insolvency adjudgment. This question relates to two aspects, firstly, whether the domestic court has the right to dispose the overseas property, secondly, whether the insolvency adjudgment of the overseas court has the domestic effectiveness. As different countries have different historical traditions, development levels and national interests ,they adopt different systems. The author attempts to find the optimum system for our country by comparing different systems.Section one of this thesis discusses the concerned concepts of cross-border insolvency, such as insolvency, cross-border, insolvency adjudgment and extraterritorial jurisdiction. The author defines the extension of the cross-border insolvency problem and analyses several primary issues that the cross-border insolvency involves in.Section two of this thesis discusses two basic theories concerned with extraterritorial jurisdiction of cross-border insolvency, namely the principles of Territorialism Bankruptcy and Universalism of Bankruptcy. The author attempts to summarize the advantages and disadvantages of the two theories, and set forth several new theories.Section three of this thesis introduces the provisions of several international pact which regulate the cross-border insolvency, such as'Insolvency Pact between Scandinavia Countries','Hague Conventions(draft)','Istanbul Pact of European Council(draft)'and'Pact of European Community(draft)'(1992). Then the author points out the advantages and disadvantages of these conventions (or drafts).Section four of this thesis introduces the provisions of several countries'insolvency law about the extraterritorial jurisdiction of cross-border insolvency. By studying the systems of cross-border insolvency adopted by these countries, the author attempts to analyze why different countries adopt their specifically systems. That will provide the foundation for the subsequent discussion.Section five of this thesis firstly introduces the insufficiencies of legislation of our country in the extraterritorial jurisdiction of cross-border insolvency, pointing out the absence and contradiction in legislation. By particularizing several representative cases, the author tries to find out both the issues and revelations. Then the author analyzes"the Bankruptcy Law of the People's Republic of China"(draft in 2000 and draft in 2002),affirming their advantages and pointing out their disadvantages which should be improved.