Analytical review on the major issues of the new bankruptcy (law) legislation

Abstract

The bankruptcy law is an integral part of the legal system of societies with market economy. After many years of preparation, the draft of the new bankruptcy law in China was submitted to the Standing Committee of the National People’s Congress twice and is waiting for the third approval to be enacted. Drawing on the experiences of other countries, the new bankruptcy law tries to carry out the concepts of market economy, eliminate the residual influences of planned economy that existed in the old law, protect lawful rights and interests of creditors and debtors, and maintain the order of socialist market economy. This thesis analyzes and researches on the major and controversial issues that emerged during the legislation of the new bankruptcy law from the aspects such as the principle of the legislation, criteria of bankruptcy, preservation or abolishment of policy-related bankruptcy, protection of the employees’ rights and interests of bankrupt enterprises, the creditors’ committee system, the trustee system, reorganization system to prevent bankruptcy, and the legal obligations of bankrupt, and so on. It also gives a comprehensive introduction to the innovation and modification of the new bankruptcy law.