On The Current Situation Of China’s Pre-restructuring Legal System And The Construction Of The System

As a natural result of the development of market economy,pre-restructuring is a new legal procedure for corporate rescue based on the two original corporate rescue systems in China,taking the essence and removing the dross,thus forming a new legal procedure for corporate rescue.It has been divided into two different stages:out-of-court restructuring and bankruptcy restructuring.The core of the pre-reorganization system is that the creditor or debtor can choose to apply or not to apply the system,taking into account the difficulties of the business and the possibility of its survival.Unlike bankruptcy reorganization,the court’s limited involvement in the pre-reorganization stage is mainly reflected in the designation of judicial rules to provide operational guidelines for pre-reorganization,the approval of pre-reorganization applications by stakeholders,and the intervention and supervision of the pre-reorganization plan and information disclosure review,so that the effect of the creditors’ commitment to the draft plan in the pre-reorganization process can be extended to the bankruptcy reorganization stage,in order to shorten the reorganization process and save the company in crisis.The initiation and implementation of pre-restructuring does not depend on the acceptance and approval of the court,and the provisional administrator can be hired by the parties themselves.The establishment of a market-oriented and rule-of-law-based pre-restructuring system is one of the important goals to be achieved in the revision of bankruptcy law in China.This paper uses empirical and comparative analyses to address the issues of lack of uniformity and compulsory regulation,unclear role of the parties,lack of autonomy of the parties,and the lack of the relationship between pre-reorganization and bankruptcy.In the light of the current domestic legal practice of pre-restructuring,the lack of uniform and mandatory regulations,the unclear role of participating parties,the lack of autonomy of the parties,the lack of effective connection between pre-restructuring and bankruptcy restructuring,and the rough design of specific systems,and the relevant provisions on the appointment of professional administrators,improvement of information disclosure rules and determination of the effectiveness of pre-restructuring plans during the restructuring period,and the basic conditions of socialist market economy with Chinese characteristics,the authors propose that when constructing the legal system of pre-restructuring in China In the light of the basic national conditions of socialist market economy with Chinese characteristics,it is suggested that a unified legal regulation should be formulated,the division of roles of the participating parties should be clarified,the autonomy of the parties should be ensured,the interface between pre-reorganization and bankruptcy reorganization should be improved,and specific institutional arrangements should be made.