The Connection Of Administrative Disposition And Bankruptcy Liquidation Proceedings Of Securities Firms

In recent years, securities industry in China has fast development under thepromotion of government, but at the same time encountered many problems.Naturally, the country also has the responsibility to solve a series of problems causedby its poor regulation, particularly the problems in docking administrative dispositionwith judicial procedures of securities firms’ bankruptcy liquidation system. Becauseof this, on April12,2008, the State Council issued Securities Company Risk DisposalOrdinance, established types, forms of administrative measures in the riskmanagement of securities firms in the form of administrative laws and regulations.The ordinance has provisions of administrative liquidation procedures, and it hascertain relevance with bankruptcy liquidation procedures. As to the risk managementprocedures of securities firms, it may appear all sorts of legal problems and obstaclesin the docking because of existing bigger differences both in the applicable law, taskgoal and leading authority. The purpose of bankruptcy liquidation is to repaybankruptcy property of enterprise to creditors of the company fairly and reasonably.Because of administrative liquidation work merging into bankruptcy liquidationprocedures, bankruptcy liquidation procedures of securities firms is more complicatedthan other companies. Securities Company’s bankruptcy liquidation, the work ofjudicial procedures and administrative disposition is lack of specific legal basis, and itleads to docking problems, makes the bankruptcy liquidation work of securities firmsnot be finished smoothly. Therefore, this paper systematically studies the docking judicial procedures with administrative disposition of securities firms, in order to dealwith the bankruptcy liquidation of securities firms better and push convergent work inrisk management of securities firms effectively.This article takes Bankruptcy law and Securities Company Risk DisposalOrdinance as the foundation, starts from the practical problems encountered in thebankruptcy liquidation of securities firms, analyses and demonstrates the legislativedefects and the difficulties of practice involved in bankruptcy procedures andadministrative disposition by relevant laws and cases, refers to the legislation andjudicial practices in the United States, and analyzes the legal regulation ofadministrative disposition power in the bankruptcy liquidation of securities firms. Thefirst part mainly introduces the law application in bankruptcy procedures of securitiesfirms, and it mainly includes the general provisions of Enterprise Bankruptcy law andthe special provisions of Securities Company Risk Disposal Ordinance. The secondpart mainly analyzes the defects in docking administrative disposition withbankruptcy procedures of securities firms. The third part mainly analyzes the specialspecifications of Securities Company Bankruptcy law in the United States for analysisand reference. The fourth part mainly puts forward the minds to link up bankruptcyprocedures and administrative disposition procedures of securities firms in China.