On The Start Of China's Enterprise Bankruptcy

Bankruptcy law is an important law for a country to regulate economy, and is of huge commercial value. China promulgated the Enterprise Bankruptcy Law of People's Republic of China (For Trial Implementation) in 1986, which regulate the bankrupt of state-owned enterprises. At that time, it did play a positive role. However, it gradually cannot meet the requirements of modern economy.The Enterprise Bankruptcy Law of People's Republic of China was passed on August 27th, 2006, and is to put into effect on June 1st, 2007. As the regulations on enterprise bankruptcy in the Enterprise Bankruptcy Law of People's Republic of China are very thorough, and it is the main law for regulating the bankrupt of Chinese enterprises in the future. Therefore, this thesis would focus on the relevant regulations of this law, and analyze the procedure of enterprise bankruptcy.This thesis is aimed at the respect of the starting of a bankruptcy procedure, and based on the regulations of the Enterprise Bankruptcy Law of People's Republic of China, and uses comparative research method to analyze the issues of the factors of starting a bankruptcy procedure. This thesis contains four chapters. In Chapter One, it analyzes the definitions of Bankruptcy, Bankruptcy Cause and Starting a Bankruptcy Procedure. In Chapter Two, it analyzes the first factor of starting a bankruptcy procedure—competent debtor, and explain who are the competent debtors in Chinese bankruptcy procedure. In Chapter Three, it analyzes the second factor—bankruptcy cause, and explain how to the bankruptcy cause. In Chapter Four, it analyzes the third factor--application process, and specifies how to apply the process. Finally, it draws a conclusion, and gives brief evaluation of the starting factors of Chinese enterprise bankruptcy.