Study On Financial Control Of Bankrupt Enterprises Under The Framework Of The New Bankruptcy Law

Abstract:Bankrupt enterprise is a specific survival pattern in the specific time of enterprise life cycle, which still occupies a lot of economic resources, human resources and social resources. For example, the total assets of Lehman Brothers Holdings Inc. were 691 billion dollars when it filed for bankruptcy protection in September 15,2008. Therefore, strengthening the financial control of bankrupt enterprises and protecting the legitimate interests of stakeholders of bankrupt enterprises is a necessary objective requirement of market economy and even the core issues of enterprises in the process of implementing bankruptcy. On August 7,2006, twenty-third session of the Tenth NPC Standing Committee adopted the "PRC Enterprise Bankruptcy Law" (new bankruptcy law) which will be carried into execution on June 1,2007. Promulgation and implementation of new bankruptcy law provide a more solid legal guarantee for the legal rights of creditor and debtor and provide a legal basis and operating platform for researching financial control issues of bankrupt enterprises to under the new situation.Taking the bankrupt enterprises as the research objects, around the issues of financial control of bankrupt enterprises, this thesis dissertates from the following aspects based on internal control theory, system theory, control theory, theory of bankruptcy financial management and theory of financial control system based on the three-dimensional structure. Firstly, this thesis analyzes and addresses the key causes of the runaway of financial control of bankrupt enterprises. First, the defects of objective socio-economic and legal environment, and second, the faultiness of financial control system in the enterprise, such as fuzzy control objectives, lack of main control body, lack of effective supervision in the process of checking, assessing and liquidating the assets. Secondly, this thesis analyzes and summarizes the particularity of financial control of bankrupt enterprises and sustainable enterprises from the basis assumption, control nature, control environment, control objectives, control subject and control content seven aspects. Thirdly, based on the study of the particularity of financial control of bankrupt enterprises, this thesis ascertains the five elements of financial control of bankrupt enterprises, and then determines the financial control process of bankrupt enterprises. And this thesis researches bankrupt conciliation, bankrupt reorganization and bankrupt liquidation three types of financial control of bankrupt enterprises. Closely combined with the above studies, this thesis pertinently proposes five problems such as improving the internal and external control environment, improving the financial control system, strengthening communication and internal supervision system, which should be pay attention to when bankrupt enterprises implement financial control.The focuses of this thesis are mainly the following aspects:first, difference analysis of characteristics of financial control of bankrupt enterprises and persistent enterprises. Secondly, association analysis of characteristics of the new bankruptcy law and financial control of different type bankrupt enterprises. Thirdly, the elements of financial control of bankrupt enterprises and its controlling process under the view of the new bankruptcy law.The research features of this thesis are mainly the following aspects:first, the organic integration of the new bankruptcy law in financial control of different type enterprises; second, the characteristic analysis of financial control of bankrupt enterprises under the view of the new bankrupt law.