Study Of The Responsibility And Incentive Systems Of The Company's Liquidation Of The Obligor

The institutional arrangements from a company's establishment to collapse include three parts which are establishment, change and termination. In accordance with relevant laws and regulations of PRC, the normal sequence for a company's termination include of five phases which are legal establishment-conduct business operation- causes for termination occur- cancellation of registration- personality eliminated. However, in reality, the sequence for a company's termination usually include the following steps, which are legal establishment-conduct business operation-causes for termination occur-business license revoked without cancellation of registration-the personality weakened but not eliminated. Without liquidation and cancellation of registration, a company's personality will not be eliminated even if the causes for termination occurred. In this circumstance, a company can legally "be born" but can not legally "die." The legal doctrine and legislation concerning liquidation in our country are all so immaturity that can not provide sufficient guide for company to initiate the processes of non-bankruptcy liquidation. After dissolution, the company sometimes refused to liquidate, illegally liquidate, or even take advantage of defects in legal system in order to achieve the purpose of evasion of debts. These actions seriously depart from the purpose of setting company liquidation regulations, infringe the supervising system on company, impair social credit system, even affect regular social economic order and market economy's development in our country. It is necessary to prevent such violations and build a healthy and orderly liquidation mechanism. In this paper, the liquidation is limited to non-bankruptcy legal system. The concept of "liquidated obligations person" has been introduced which refers to the persons who are obliged to initiate the liquidation processes when causes for termination occurred, appoint liquidator, and settle all the claims and liabilities. The point of penetration of this paper is disputes in legal practice. In this paper the author comprehensively uses of economic analysis and comparative analysis methods. The main concepts of the paper are as follows. The first part is general introduction of basic doctrines on liquidators, including its concept and differences with other similar concepts, the scopes of liquidators, legal status and rights and liabilities of liquidators. The second part illustrates legal responsibilities not limited to civil responsibilities but also include administrative and criminal responsibilities. The last part is suggestions on improvement liquidator system and relevant mechanism.