The New Insolvency Law Of The P.R.C.: A Comparison Of The New And The Old Functions And Capacity Of The Insolvency Administrator

In the year 2007, the Chinese government introduced a new bankruptcy law. This is remarkable because the old bankruptcy law had been in power for more than 20 years. The new law is regarded as a major step of the Chinese legal system to reach Western standards. Therefore, this thesis examines major changes of the Chinese bankruptcy law. This should help people - especially foreigners - who become involved with bankruptcy in China or people who are thinking about applying for a position as an insolvency administrator. Because the insolvency administrator plays such an important part in the liquidation of a company, the main research goal of this thesis is to identify and compare the major changes of the new Chinese bankruptcy law.This thesis shows, therefore, in its first step the historical development of the Chinese bankruptcy law, beginning with the first Chinese bankruptcy law from the year 1906. Following the time line, the thesis will end up with the new Chinese bankruptcy law, analyzing the major changes and important factors of the new. After that the old role of the insolvency administrator will be shown, or better the old role of the liquidation group. The old Chinese bankruptcy law considered not one single person as an insolvency administrator, but more a whole group of people. The old role has been analyzed in six stages (1) the appointment process, (2) the education and required background of the administrator, (3) the legal position of the insolvency administrator (4) the duties and responsibilities, (5) the supervision, and finally, (6) the payment of the insolvency administrator. Consecutively, the new role of the insolvency administrator has been analyzed applying the same methodology. In the end a synthesis will be made by comparing both roles, showing major improvements, and identifying implications.