Special Legal Person For Rural Collective Economic Organizations Bankruptcy Research

The Civil Code confirms the status of rural collective economic organizations as special legal persons and clarifies their qualifications as subjects entering the market.Rural collective economic organizations are different from ordinary legal persons by presenting the characteristics of comprehensive functions,public property and closed members.There is considerable controversy in academic circles as to whether rural collective economic organizations have bankruptcy capacity.Studying the bankruptcy of special legal persons of rural collective economic organizations can improve the system of special legal persons,improve the bankruptcy law system,and help protect the legitimate rights and interests of creditors.Special legal persons of rural collective economic organizations should be granted limited bankruptcy capacity.Under the premise of separating politics from economics,rural collective economic organizations should focus on their functions as economic organizations while undertaking public functions.Special legal persons of rural collective economic organizations participating in market economic activities shall still bear the adverse consequences caused by the failure of their operations.However,special legal persons of rural collective economic organizations have special characteristics in their positioning and functions,and cannot have the same bankruptcy capacity as ordinary legal persons,and should be given limited bankruptcy capacity,and a bankruptcy mechanism should be established that focuses on bankruptcy reconciliation and bankruptcy reorganization,supplemented by bankruptcy liquidation without termination.Bankruptcy without termination means that special legal persons of rural collective economic organizations can apply bankruptcy means to solve their debt problems,and when applicable,bankruptcy reconciliation and bankruptcy reorganization are preferred,and after bankruptcy reconciliation and bankruptcy reorganization fail,bankruptcy liquidation can be selected to settle debts,but ultimately does not lead to the legal consequences of their termination.A limited bankruptcy regime can ensure that rural collective economic organizations perform comprehensive functions,avoid the cost of re-establishment and realize the value of modern bankruptcy regenerationalism.It should be clarified that it is a statutory matter for rural collective economic organizations to first apply for bankruptcy settlement and bankruptcy reorganization,and must not first apply for bankruptcy liquidation,and limit their options to ensure that the bankruptcy liquidation mechanism is not applied unless necessary.Only after the bankruptcy reconciliation and reorganization of rural collective economic organizations fail can they be given the opportunity to choose bankruptcy liquidation.For bankruptcy settlement systems,it should be made clear that its core value is to prevent the bankruptcy of the debtor;lowering the criteria for the passage of settlement agreements;The bankruptcy settlement supervision mechanism should also be fully applied;and construct a conversion mechanism for bankruptcy settlement and bankruptcy reorganization.For the bankruptcy reorganization system,it should be clarified that the debtor and the rural agricultural administration can be the applicants for bankruptcy reorganization;Selection of some capable collective members to participate in the insolvency representative;In the process of reorganization,the agricultural and rural departments shall do a good job in promoting the reorganization plan.For the bankruptcy liquidation without terminating mechanism,substantive and procedural rules should be established.For substantive rules,first,it is clarified that the starting condition for bankruptcy liquidation without termination is insolvent;Second,the liquidation entity may be defined as the operation and manager of the rural collective economic organization,and the rural collective economic organization forms a liquidation group on its own,it shall be established only after approval by the agricultural and rural management department examining the qualifications of the personnel.The third is to clarify the scope of bankruptcy liquidation without terminating the liability property,and only operational assets can be regarded as responsible property.For procedural rules,the rules in liquidation work should be clarified.Finally,special legal persons of rural collective economic organizations should not apply for deregistration after completing bankruptcy liquidation.Where the people’s court rules to terminate bankruptcy proceedings,it shall report it to the agricultural and rural departments for the record.