On Bankruptcy Preservation

Bankruptcy law is the economic constitution during the transition time, and its status in economic life and state systems is growingly becoming prominent with development of the society. Many developed countries are actively exploring the improvement of bankruptcy law, especially the bankruptcy prevention and enterprises salvation after having undergone the economic crises and financial storm. The construction of China's institution of bankruptcy law has experienced a very hard way, after more than ten years' efforts, on August 27,2006 the new bankruptcy law has been adopted by the Standing Committee of National People's Congress. The new law has expanded the bankruptcy entities to all types of business, and solved the contradiction between the protection of proprietors' rights and interests and the guaranteed obligations; however, the author thinks that the construction of some concrete institutions has yet to be improved. Pointing out the problems in China's institution of bankruptcy preservation in the context of comparison of different countries' bankruptcy preservation institutions with the method of historical and economical analysis and in combination with the model of developed countries and Taiwan region in a critic way, considering China's conditions and with the help of the model of society-orientation, some important views have been put forward for the construction of China's institution of bankruptcy preservation with the aim at pursuing the maximization of the efficiency and interests of bankruptcy disposal, and implementing the principle of equal treatment to all business entities in bankruptcy proceedings and trying to avoid the actually unfair treatment between the confrontation of creditors and obligors from the starting point.