Research On Legal Problems Of Affiliated Enterprise Bankruptcy

Modern enterprises in order to improve their competitiveness combined witheach other, resulting in an affiliate of this special form, which is a necessaryrequirement of large-scale social development, while the collection of this highlyrelations will lead to many legal issues. Especially the exchange of interests andsecret operations between enterprises, not only a serious infringement of theinterests of creditors, but also to bring the problem of judicial practice. This caneasily lead to destroy legal personality independent system.The U.S. courts based onthe enterprise entity theory, using equitable utilization principle to build substantiveconsolidation, and successfully applied in the judicial practice. Because of the latestart of China’s corporate system, there are flaws in the legislation on affiliatedenterprise system. This article will be affiliated enterprise as a starting point, thefocus of research on the affiliated enterprise substantive consolidation bankruptcy inprinciple, legislation on substantive consolidation principles and build appropriatelegislative proposals.This paper is divided into three specific parts, including introduction, body,conclusion. The main body consists of four chapters:The first chapter discusses the definition, connotation and characteristics of theaffiliated enterprise, through a simple introduction to affiliated enterprise lead tobankruptcy problems.The second chapter discusses the relationship between the basic principles ofsubstantive consolidation concept, rationale and related systems, through specificdiscussion of substantive consolidation principles, indicating that the theoreticaladvantages in solving the problems associated with the bankruptcy.The third chapter focuses on China-US Court of Justice case on substantiveconsolidation principles, through mutual comparison, analysis and review of legislative deficiencies and defects in the court applied the principle of substantiveconsolidation.The fourth chapter from legislative system, substantive and procedural point ofview of the three aspect n to build its own proposals on the legislation of substantiveconsolidation.