Comparative Study On The Bankruptcy Reorganization System

Bankruptcy reorganization system is a positive preventive system. In this system, if ananterprise is facing or have possibility to face reasons for bankruptcy,but have hope to berebuild, after applications by interested parties and the court’s approval of it, businessreconstructuring and debt clean-up will be carried out enforcedly under the court’s supervisionand coordination of the parties, in order to maintain and develop their career, enablingenterprises to be reborn out of the woods. In modern insolvency regime, Bankruptcyreorganization system occupies a very important position, and achieves establishment,development and improvement in the world.In modern legislation, the most typical bankruptcy reorganization system exists in UnitedStates and Japan. The clubs Rehabilitation Act of Japan is by far the most detailed andcomplete restructuring legal system. Because the clubs Rehabilitation Act of Japan is aproduct that integrates the civil law system and common law legal system. In addition, it isalso a crystallization combined legislative technique in Germany with the U.S. corporaterestructuring principles.[(Japanese) Tetsuo Sato, Genfa Chen, Comparison on BankruptcyLaw between China and Japan Generality, Foreign Law, March1993] The clubsRehabilitation Act of Japan has been practiced in a long time. And the judicial practices itselfare experienced and has several revisions, besides, more stringent rules have been formed.Bankruptcy reorganization system starts late in China, so we lack of appropriate judicialexperience and have many defects and deficiencies to be perfected. By comparative analysis,writer compares the bankruptcy reorganization system with rehabilitation system of Japanesecompany to analyze China’s bankruptcy reorganization system and proposes somesuggestions to improve and perfect the bankruptcy reorganization system in China.First of all, the introductory section describes the significance of the topic of this article,current research at home and abroad and the focus of theory and the problem to be solved,paving the way for the following conduct. The second part of the article explains the basictheoretical issues of bankruptcy and reorganization system, the definition of bankruptcyreorganization, legislative background of bankruptcy reorganization system and thecomparison with rationalization system, settlement system and clearing system. The thirdpart and the fourth part is the focus of this article. Writer makes a comparison from the startand implementation of the bankruptcy reorganization system between China and Japan anduses the analysis to find the deficiencies in China’s bankruptcy reorganization system.Learning Japanese mature judicial experience, combined with China’s national conditions,learning from each other, making concrete and feasible legislative proposals.