The Improvement Of Bankruptcy Reorganization Legal System In Our Country

The bankruptcy reorganization system, a basic system of the market economy, is to protect those enterprises who are surfing financial crisis. As an exit mechanism, bankruptcy reorganization is specifically objected and variously participated. Providing wide access for application, it prepares a serious of measure for financial distressed companies. Though bankruptcy reorganization system has diverse objectivities and programs, it also limits the priority of collaterals. The characteristics above have shown the significance of bankruptcy reorganization system to companies. It saves the debtor from the crisis and protects the creditors from the great loss of their investment. In terms of the society, it helps to guarantee the stability of economy market. See globally, it will lead a new trend that recreates the debt settlement which is conducted in the structure of legislation.Bankruptcy reorganization system was born in the background of the commodity economy monopoly with the development of social production. Such "Reforming regeneration type" system switched the value of bankruptcy legislation from individual interest to the mass interest. The system provides possibilities to conquer the gap between traditional legislation and financial distressed companies. Meanwhile, as a particular system to rescue the companies, bankruptcy reorganization system is widely investigated in both the Chinese reform in the bankruptcy law and relevant studies. Explained from the respective of law, the reorganization, also known as regeneration or reform, refers to the situation that when a company, always operates in a large scale, is likely to claim bankruptcy or present possibilities alike, the court will force a takeover in the requests of the investors on the company to protect the company from the real bankruptcy.As an important component of the modern bankruptcy legislation system, bankruptcy reorganization system aims to achieve the revival of the companies, thus enlarge the function of bankruptcy law by protecting the mass social interests via legislation. Bankruptcy reorganization system emphasize the revival of the company, but also considers relevant crowds. It brings out with the intervene of the government to guarantee the legislation procedure. However, studied from the previous cases, it can be seen that there still exists disadvantages in the implementation of China’s bankruptcy legislation. Combined with the analysis of previous studies and relevant cases, this research aims to analyze the problems of the inadequate standardization in the approval procedure and feasibility investigation of the court. The research also discusses the protection of the interests of minority oppositions. The research evaluates the expensive costs and the possible efficiency in the consideration of the abuse of financial distress. In terms of the practice, the research provides several policy advise on the aspects of government intervention upon comparison with foreign experiences to domestic situation.