On Liquidation Of The Legal System

As parties in economic competition, companies become more and more important in the market economy. Dissolution and liquidation often happen to companies because of drastic competition. During this period, the base on which the parties may benefit from different parts has disappeared, and hence conflicts get more ferocious. Thus, it is clear that certain criteria for market-exit to reduce bad effects to society have to be offered to guide company liquidation procedures. And one of the best solutions is to establish integrated liquidation scheme. But, in current judicial practices, because of the defects of company liquidation scheme, many problems cannot be solved, and it is difficult to reach the goal of liquidation smoothly. However, it may lead to unfavorable results to the benefits of shareholders, creditors and other related parties. Beginning with conception and history of company liquidation, this dissertation aims to make evaluation hereof to emphasize the necessity of establishment and improvement of such scheme. And then, this dissertation compares the rules of continental law and common law with Chinese laws relating to this topic. Finally, this dissertation follows to analyze concrete operation in the procedures of domestic liquidation, and try to find the existing problems and do some research to address root problems thereof. Based on the above analysis, this dissertation proffers proposals for legislation on company liquidation scheme.