An Analysis Of The Applicable Standard Of The Right To Mandatoty Approval Of Bankruptcy

The essence of bankruptcy and reorganization is to help distressed companies achieve rebirth,the core link is to formulate and approve the restructure plan.The adoption of the reorganization plan is actually a process of reforming the interests of the people involved.It is also the process of party autonomy.However,in order to prevent the reorganization come to a dead lock,the new Bankruptcy Law stipulates a compulsory approval system.Still,since its implementation,our courts have basically adopted an attitude of "rule for approval as long as the reorganization was encountered ".Courts often abuse the power of compulsory approval on the ground that "social interest is better than personal interest".The main reason for this is that the compulsory approval standards are not clear and distribution.Therefore,it is necessary to rethink and improve the criteria for the cram-down of reorganization plan.This paper aims at discussing the proper meaning of the compulsory approval standards,checking the gaps in China's current compulsory approval conditions,and providing suggestions for improving China's compulsory approval standards.This article mainly includes four parts: The first part reveals the problems existing in the process of compulsory approval of the reorganization plan by presenting two cases of reorganization in which the effect of the application of strong sanctions is different.The second part discusses the compulsory approval standards.The basic theory introduces the necessity and justification basis of the compulsory approval system from two aspects of theory and value.The third part investigates the standards that the court should follow in the compulsory approval of the reorganization plan,and analyses the difficulties in their application.In particular,it is divided into four standards: Minimum group pass standard,the principle of maximum interests of creditors,Fair and Equality,and the feasibility of the operation scheme.The fourth part is put forward specific legislative recommendations combined with the previous text to the approval of reorganization plan standards in China.