The Study Of Bankruptcy Reorganization Process Of The Listed Company

Bankruptcy reorganization system is a new system that has emerged following bankruptcy liquidation and bankruptcy reconciliation. The reorganization process is complex, costly and time consuming, hence usually applies to large enterprises only, such as limited liability companies, especially listed companies. In cases of listed companies that have gone through bankruptcy reorganization, we see positive overall effects. Many listed companies were reborn after bankruptcy reorganization. However, during the process, handlings in local courts are not unified due to the absence of specific laws and regulations. Therefore, there is an urgent need for regulation of the bankruptcy reorganization of listed companies.The bankruptcy reorganization of listed companies is a systematic and complex process which involves various stakeholders’interests, including creditors, debtors, the debtor’shareholders, social investors and so on. The bankruptcy reorganization of a listed company is essentially a game between its stakeholders. On one hand, all stakeholders compete and compromise during the process; on the other, judicial authorities act as mediator, and if necessary, exercise judicial coercive power. Finally, as the subject of bankruptcy reorganization is listed companies, regulation from securities regulators becomes required. Bankruptcy reorganization of listed companies should aim at:balance of all stakeholders’interests, rational judicial intervention, and proper regulation by regulators.This paper draws on advanced practices from countries that are relatively more developed in legislation of this respect to analyze and study the current problems in bankruptcy reorganization of listed companies in China. This paper emphasizes both theoretical analysis and practical application and also adopts the methods of historical research, comparative analysis, case study and empirical analysis. First, it reveals the importance and urgency of improving China’s bankruptcy reorganization system by analyzing its features and value. Second, legislative practices in this field outside China are studied and combined with its own legislative practices in order to identify what China can refer to. Third, this paper discusses the procedures of bankruptcy reorganization of listed companies in China. It reviews the processes of filing for and acceptance of bankruptcy reorganization, development, approval and implementation of reorganization plans and so on, and by so doing, identifies the problems and weaknesses in those processes. Fourth, this paper offers legislative proposals on certain problems in China’s bankruptcy reorganization of listed companies, surrounding the issues of information disclosure, securities issuance and the authority of the People’s Court and China Securities Regulatory Commission.