Extraterritorial Effect Of Transnatinal Bankruptcy

With the in-depth development of global economy,there are a large number of transnational insolvency cases. The phenomena of transnational insolvency has aroused widespread concern in various countries. The transnational insolvency is such a bankruptcy which relates to the international factors .Because the multinational corporations have such a large scale and relate to so many interests , and creditors and the estate are in two or more countries in many cases, so the extraterritorial effect is the basis in dealing with the transnational insolvency.There are four chapters. Chapter one focuses on the general theory of cross-border insolvency such as the meaning of bankruptcy and transnational insolvency and other fundamental questions. Through explaining these fundamental questions, the article analyses complexity of the cross-border insolvency and the key point about how to solve this complex question. The latter part of part one is about the extraterritorial effect. There are two main theories:one is the universality theory or unity theory;the other is the territoriality theory or pluralism theory. There is another compromise theory—eclectics theory. After explaining the conception and the characteristics, the article analyses the advantages and disadvantages of this several theories and discusses other present theories.Chapter two and three introduce the legislation and practice in other countries and the international community. Analyzing the principles and the models is the very important for making our own model. It's the foundation of exploring China model.Chapter four illuminates the rules and the deficiency in our country and introduces the scholars'attitudes. This part indicates that what we should do and what attitude we should have in solving the transnational insolvency. We should keep the balance between protecting interest of our own country and the cooperation in transnational insolvency. We should not only respect other country'law but also work together actively.