Non-bankruptcy Liquidation Proceedings

In modern economic society, the company has always been an important role of the market. In essence, the company is deemed bearing the interests of various social parts, for instance, investors, creditors, and many other related parts. They may not only come together due to some kinds of common interests, but also because of pursuing their respective interests. In the situation of a company's non-bankruptcy liquidation, when very parts' common interests cease to exist, the company has to be terminated inevitably. In a healthy and orderly market environment, a company is free to start or close with following the proper orders. But we find that many companies were terminated without obeying the proper procedure of liquidation, therefore, they may not only be harmful to the interests of creditors, but also to the shareholders, employees, and the whole market as well. The procedure of company's non-bankruptcy liquidation is to find an effective way to solve these'problems.As the necessary procedures of terminating companies, non-bankruptcy liquidation must follow a series of strict and impartial process. In the developed countries, whether civil or common-law countries, non-bankruptcy liquidation all proceeds systematically and scientifically. In contrast, in China, though the company law has initially established non-bankruptcy liquidation proceedings, but it is undeniable that many of the provisions of non-bankruptcy liquidation are very rough and simple. This paper compares different countries and parts of the company's non-bankruptcy liquidation proceedings, with the detailed reviews of existing companies in liquidation proceedings in China, and makes a number of suggestions, with a hope to improve the legal system of company in China.