Value Objective Of Bankruptcy Reorganization System And Its Implementation Mechanisms

This paper contributes to improve the reorganization system which has been enacted in the 2006 Chinese Bankruptcy Law. The main purpose of this article is to reveal the main value-objective and its realizing mechanism of the reorganization system in the 2006 Chinese Bankruptcy Law from the economic perspective and to improve the reorganization system by finding ways to achieve its value-objective. The author hopes that the Chinese reorganization system can accomplish the competing goals of both saving the enterprises in financial difficulties and promoting the overall social benefits with reflecting its value-objective of efficiency and fairness.The first part of this article is introduction, which mainly contains the writing background, some related domestic researches, purpose, significance, content, method, research route and innovation of this paper. The last part of this article is conclusion, which contains the main opinion, innovation and shortcomings of this study. The main part of this article consists of four chapters.Chapter one explains the concept of the reorganization system and introduces the establishment of the reorganization procedure in the 2006 Chinese Bankruptcy Law. The relation between value-objective and its realizing mechanism of the reorganization system is also discussed in this chapter.Chapter two outlines the basic theory of law and economics with showing the advantages and disadvantages of this method. The value-objective of reorganization system is analyzed from the perspective of law and economics and the efficiency and fairness value-objective of the reorganization system is proposed by the author in this chapter.Chapter three illustrates the realizing mechanism of the efficiency and fairness value-objective in Chinese reorganization system.Chapter four contains some suggestions made from the perspective of law and economics by the author in order to improve the Chinese reorganization system and make it an effective tool for the better development of market-economy in China.The distinguishing feature of this article is the using of economic analysis method in the study of Chinese reorganization system. The author argues that the main value-objective of Chinese reorganization system is efficiency and fairness according to Kaldor-Hicks efficiency standard and Coase Theorem of law and economics. The author proposes that the fundamental value-objective of the reorganization system is efficiency which means to maximize the social interests as a whole and to reduce the transaction costs caused by reorganization procedure. On this basis, the author further points out that guaranteeing the balance of all kinds of interests in reorganization procedure is an internal requirement of the efficiency value-objective and that the fairness value-objective is also very significant in the reorganization system. The author argues that efficiency and fairness is equally important for the reorganization system and should not be separated. At the end of this article, according to the efficiency and fairness value-objective, the author proposes a number of suggestions for the improvement of the reorganization system in the Chinese Bankruptcy Law.