Research On Bankruptcy Auction Legal Issues

In September 1986, China's first bankrupt enterprise in Shenyang Explosion-proof equipment plant was auctioned. In recent years, China's annual bankrupt case on average is about 6000. Bankruptcy and auction are newly emerging after 1980s in our country. Bankruptcy refers to a serious loss owing to mismanage when enormous debts cannot be paid back and at the same time, the government will not pay them off, so a creditor or a debtor can submit an application in accordance with the law declared by the court and all the properties could be shared by all creditors, as a result, the unpaid debts are eliminated. Enterprises bankruptcy is a demand of self-competition in the market, which is a way of ending enterprises and an extreme means of self-protection saving it from a difficult situation. It is a kind of necessary loss. Although the bankruptcy and auction has experienced a long history of more than 20 years, and there are some theoretical researches on them, it is still difficult to discover the specific works on them, and most of them studied from the principles and concrete procedures of the bankruptcy and auction, which lacks of research from the view of body, range and even the responsibility of bankruptcy and auction. Based on this, this research paper named Research on Bankruptcy auction legal issues intends to carry out a kind of specific study in terms of the bodies in the auctions of bankrupt assets, the range of the bankrupt assets and the legal responsibilities in the auction of bankrupt assets, in the hope of making some contributions to the development of legislation and practice of the enterprises bankruptcy and auction. The whole paper is divided into four chapters:The first chapter briefly introduced the main body of the estate auction. The main body of the auction can be divided into Clients and trustees, according to the different status. The client includes the Government, the insolvency administrator and the people's court, while the trustee can only be auction institutions who is qualified. As for the legal status of people's court in the auction, at present, the court can intervene in bankruptcy as a supervisor and protect the rights of stakeholders.The second chapter is devoted to introduce the object of the insolvency auction. In theory, we distinguished the scope , between ones that the insolvency administrator manage and the ones they can auction, the property which is auctioning is neither equal to the ones enterprise owns nor the administrator manages, which must be clearly. The property which can be auctioned just aim at ones can be auctioned that the administrator manages. the property which don't belong to the bankrupt property can't be auctioned even if it belongs to the bankrupt enterprises, or it has been managed by the administrator.The third chapter mainly discussed the content of the auction legal relationship and the legal regulation of the auction. Though analyzing the rights and duties of the parties in the bankruptcy and auction legal relationship, we find that in reality, there are some parties do not exercise their rights and carry out their obligations according to law and even exert malicious acts of collusion.. As a result, when we study the bankruptcy and auction legal problems, it is essential to regulate the auction actions of the relative parties and investigate the law responsibility of malicious acts of collusion.The fourth chapter mainly research legal responsibility of the bankrupt property auction. The responsibilities includes three aspects, the legal responsibility of insolvency administrator, of the auction agencies and of the third party. As part of a market economy, for their own interest, The main body of the market is bound to abuse the auctions, including the collusion of malicious acts, the acts of false bankruptcy but to escape debts, and the acts of willfully seize the property of bankruptcy, etc. so, it's necessary to strengthen the administrative supervision and judicial supervision, improve the relevant laws for the auction, and look into the legal responsibility of both sides. Lacking of the restricting by the responsibility, the rights and obligations of the law is only abstract and unprotective. Only to clear the law responsibility, can the law clear the penalties for violations, and play the correct guidance and deterrent role that the law should do.