Study On Basic Objective And Realizing Mechanism Of Financial Control Of Reorganized Bankrupt Enterprises

With the formulation and revision of Bankruptcy Reorganization gradually becoming the one of trends of contemporary international law, in China, the "PRC Enterprise Bankruptcy Law" is passed in August 27, 2006, and come into force in June 1, 2007. The introduction of bankruptcy reorganization in this law reforms the old Bankruptcy law issued in 1986 in the Legislative philosophy, normative content, operating procedures and other aspects of bankruptcy. Moreover, this law made significant changes to the bankruptcy financial control and it worth putting our mind onto. The establishing of this law fill a gap in the market- economy legal system in China. Practice has proved that the establishment of this law had satisfied the needs of the market, but at same time, how to give truly effective financial control to enterprise brought opportunities and challenges. The opportunities is that the new bankruptcy law to supply corporate finance restructuring the legal basis and operation control platform; The challenge is how to make enterprise under a safe and effective financial control by applying this new law legal in the new economic environment, which is far from a complete theoretic system, and these issues need being urgently resolved.Besides the introduction and conclusion, this paper is divided into four parts:Part I: An overview of corporate bankruptcy and reorganization and financial control mechanism. This section first describes the definition of bankruptcy and restructuring in several typical nations. We abstract the general aspect of bankruptcy laws in different nations. At the same time, based on analyzing the limitations of traditional bankruptcy mechanism in our nation, we describing the social environment needed by our bankruptcy law. Furthermore, the basic goals of financial control are explored. In addition, the connection between them is discussed.Part II: The comparison bankruptcy and restructuring corporate financial control between different nations. First, the ones of several typical developed countries, such as the United States, France, Japan and etc. are compared with each other. Secondly, we investigate the provisions of these law, and research for their characteristics for improving Bankruptcy law of China.Part III: The basic goals of bankruptcy law and corresponding financial control mechanism of China. Based on the orientation and goal of bankruptcy and financial control, we reveal the inadequacy of the relevant implementation mechanisms Part IV: The improving of the financial control in the bankruptcy reorganization system and provide corresponding countermeasures. View of the inadequacies of bankruptcy mechanism, we provide several corresponding countermeasures for improving financial control system, corresponding institution and strengthening communication and internal oversight mechanisms.