A Study On The Legal Issues Of Bankruptcy Of Affiliated Enterprises

In market-orient economy, companies tend to expand their scales and business chains to resist the risk and reduce the cost. This situation leads to the development and mightiness of affiliated enterprise. Every member of the affiliated enterprise is an independent entity. However, these members have profound economic relations. When the economic relations between members get too close, they bring up series of hard legal problems. Affiliated enterprise is facing many special problems different from independent companies in bankruptcy. Chinese bankruptcy law is in shortage of special systems to solve these peculiar problems. In order to build the consolidative bankruptcy system, the intervention of economic law is required. This paper aims to provide suggestions about the improvement of consolidative bankruptcy system.This paper is divided into five parts, besides the introduction and epilogue.The introduction part describes the background, research methods, data sources, and innovation of this paper.The first chapter aims to provide a principled analysis of affiliated enterprise and the function of consolidative bankruptcy from the perspective of economic law. Secondly, this paper discusses the legislative status of USA and German. Then it introduces the insolvency regime, bankruptcy ineffective systems and corporate personality denial system in China. After that, the writer takes a specific case for example, and points out that the issues and practical solutions of consolidative bankruptcy because of the imperfect legal system. Last but not the least, this paper puts forward a meaningful proposal to improve consolidative bankruptcy.The concluding section is a summary of the contents of this article.