Research On Bankruptcy Reconciliation Law System Of Enterprise

Bankruptcy in Enterprise Bankruptcy Law not only means liquidation but also include how to avoid liquidation. Bankruptcy reorganization and bankruptcy reconciliation are two kinds of typical patterns preventing bankruptcy liquidation. Bankruptcy reconciliation is a kind of harmonious system preventing bankruptcy liquidation. This article starts from general theory of bankruptcy reconciliation, sketches out bankruptcy reconciliation system, expounds concept and characteristic, analyses its functions, analyses structure, then states enlightenment of development of foreign reconciliation to China, states challenges brought by reorganization, and put forward defects of reconciliation system and proposals perfecting the system.This article classifies four parts:First parts:general theory of bankruptcy reconciliation. This chapter introduces general theory of bankruptcy reconciliation. Reconciliation system is a kind of contractual reconciliation in court with aim of preventing bankruptcy liquidation of enterprise. Reconciliation system is to reach settlement agreement through mutual negotiation between debtor and meeting of creditors. Settlement agreement aims at preventing bankruptcy liquidation of enterprise based on debt reduced, exempted or postponed by creditor. Settlement agreement has following functions for realizing goals:combining protection of creditor with maintaining property of debtor; combining liquidation of the debt with compromise of creditor's rights; realizing maximization of interest of creditor's rights. This chapter compares reconciliation system with reorganization system that also is preventive system in Bankruptcy Law for reader to understand more easily.Second parts:program structure of bankruptcy reconciliation. This chapter analyses all procedures of reconciliation from A to Z. Reconciliation is started by debtor applying for court, then debtors and meeting of creditors reach settlement agreement after court approves application, and finally settlement agreement become effective through approval of court. The settlement agreement binds debtor and creditor without property guarantee. For creditors with property guarantee don't vote for reaching settlement agreement, settlement agreement doesn't bind creditors with property guarantee. Warrantor and joint debtor don't take part in reconciliation procedure, so they aren't bound by settlement agreement. Then this chapter introduces consequence of reconciliation system, first is effectiveness of settlement agreement; second is invalidation of reconciliation; last is consequence after settlement agreement is carried out.Third parts:enlightenment of development of foreign reconciliation and challenges brought by reorganization. This chapter first introduces development history of bankruptcy law of four countries. The four countries are capitalistic states, with economy of rapid development, starting early, sound market economic system, and have economic base and material conditions for generation of development of bankruptcy law. It is short time that China enters into market economy, so legislation relating to economy refer to legislation of capitalistic state mostly. This chapter introduces development history of bankruptcy law of four countries in the hope that take history as a mirror and guide development tendency and direction of Chinese bankruptcy law in the future. Then, this chapter states challenges brought by reorganization and introduces superiorities of reorganization system in means and practice when comparing with reconciliation system.Fourth parts:defects of reconciliation system and proposals perfecting the system. This chapter put forward defects of reconciliation system and proposals perfecting the system based on cognition and realization of reconciliation system in anterior chapters. This article thinks the defects of reconciliation system are:narrow scope of participant, not enough strict examination in application of reconciliation, lack of provision about how warrantor ask creditor's rights to debtor, reconciliation is easy to change into liquidation procedure, not enough attention to proactive role of court in reconciliation procedure etc.