The Legal Perfection Of Debtor In Possession System In Reorganization

The regulations and incentives are two means of adjustment in Economic Law,but the bankruptcy reorganization is low enthusiasm in China.This article uses the incentive method of economic law as the starting point,try to improve debtor in possession system in China.The manage pattern is the mainly based and the DIP as a supplement in China.There is no doubt that the distressed enterprise must accept supervision when it fall into the state of bankruptcy.But many debtor can't endure that transfer the control of business affairs to the manager.The new Enterprise Bankrupt Law of PRC gives the right to debtor that manage the business and management affairs,but the conditions is too high.China is also paying more and more attention to the advantages of the DIP in reorganization procedures.In 2019,the “Minutes of the National Conference on Civil and Commercial Trial Work” promulgated by the Supreme Court further specified the DIP.Even so,the regulations of the debtors' self-management in the “Minutes of the National Conference on Civil and Commercial Trial Work” are not specific enough.DIP can be distinguished in the scope of application,mainly for listed companies and large non-listed companies to carry out the debtor's self-management;the detailed court approves the negative elements and positive elements of DIP;The manager's authority is divided into division of labor.For the DIP,it needs to be further improved in application,rights allocation and supervision in order to be more operational and less arbitrary.