Try To Discusses Our Country Present Liquidation System

As the essential process for company's market exit, company liquidation is critical to a healthy and ordered market environment. While at present, taking a wide view of relevant laws and regulations about company liquidation in China, obviously they are more rough and simpler than those in other countries and regions, which had led to a very tough situation in company liquidation in our country. The author here had tried to start with concept and classified understanding on company liquidation system. And by enumerating data and a lot of examples, we macroscopically studied major causes behind the poor status of company liquidation. Finally we have drawn the conclusion of some ways and suggestions on perfecting current company liquidation system in China. Comparative method, positive method, and comprehensive induction were main methods applied to this paper. In addition, when working on this paper, author had tried to broaden her thinking and think out of box. She comprehensively discussed her point integrating with legal theory, logic theory, and accounting theory, which had been an important character of this paper.This paper was divided into four parts.Firstly, it discussed the concept and understanding on company liquidation and classification of company liquidation in modern theory. Company liquidation refers to the legal acts that dispose various unfinished affairs of the dissolved enterprise (beyond the reasons of merger, division, or bankruptcy), allocate its residual property, terminate all legal relations centered on it and finally end the corporation qualification as a legal person. The modern theory classified company liquidation into six types from different views: bankruptcy liquidation and non-bankruptcy liquidation, voluntary liquidation and legal liquidation, common liquidation and special liquidation. Then, the author enumerated relevant laws and regulations of China's current company liquidation system and concluded that currently laws and regulations of company liquidation in China is an integrated legal system with as base, other relevant laws and special regulations as assistance, and related administrative regulation, local regulation, as well as rule and judicial explanation as supplement. And she also described the tough situation of company liquidation currently in China supported by relevant data and actual cases.Started from the third part, by applying scientific study methods like comparative and positive method, author comprehensively analyzed and summarized the four reasons behind the current poor status of company liquidation in China: firstly, confirmation of liquidator is not clear; secondly, there is no specific regulation on relevant financial report, accounting report, and pricing pattern for assets of liquidation during company liquidation process; thirdly, there is incomplete specification in China's current law to regulate illegal liquidation; fourthly, there is conflict lied in company liquidation laws and regulations, and some of them are not feasible.Finally, the author had made specific analysis on root cause to the issue by using comprehensive induction. In the conclusion, we had proposed five suggestions to perfect current company liquidation system in China: firstly, clearly define responsibility subject of company liquidation; secondly, specify requirement on pricing pattern for company assets and relevant financial and accounting report during liquidation process; thirdly, differentiate nature of illegal liquidation and strengthen specification on responsibility of illegal liquidation; specify special liquidation system for Home and Foreign Enterprise; establishment of unified is recommended.