Bankruptcy Relief Legal System Of Securities Companies

It is definitely a disastrous attack for shareholders, creditors and investor when Securities Company goes bankruptcy. Thus, it is very necessary to rescue Securities Company. However, the existing bankruptcy relief system itself is so flawed that it can not give adequate protection for the interests of creditors and investors. Consequently, it is more suitable to adopt non-bankruptcy relief for the need of each interests groups of the crisis securities company. However, relief measures are dominated by administration and are taken as the prelude for market-withdrawal. And in the whole process of relief, the interests of the securities company are impinged, rights of shareholders are neglected and the interests of investors are not properly protected. All these factors greatly affect the development of the securities company and further the stability of the whole securities market. This thesis, based on case demonstration, is trying to carry out a study on the non-bankruptcy relief system of Chinese Securities Company and further to advance corresponding suggestions for improvement.Besides introduction and conclusion parts, there are four body parts in this thesis of 33.000 Chinese characters.The first part is a general statement of the crisis of Securities Company. The meaning, characteristics and general situation of Securities Company are narrated in detail through case study, and the reason and impact of crisis are analyzed. Thus a question is posed: the relief of crisis Securities Company.The second part analyzed the theoretical and practical significances of carrying out non-bankruptcy relief for crisis Securities Company. Firstly, the meaning of non non-bankruptcy relief system of Securities Company is defined as when the securities company can not pay off its debt on time, non non-bankruptcy relief system instead of bankruptcy relief is adopted to rescue the securities company in trouble to protect securities company and the rights and interests of each interest group. Next, the existing problem of the bankruptcy system, the disadvantages of adopting bankruptcy system and the advantages of adopting non-bankruptcy system for Securities Company are analyzed. Finally, a series existing problem of Chinese Securities Company and future crisis in developments are analyzed from a practical perspective.The third part was dealing with the non-bankruptcy relief system in reality. Three usually adopted non-bankruptcy relief measures at present are narrated in detail. They are: takeover, trusteeship and mergers and acquisitions. In practice, the measures of takeover and trusteeship are considered as the precedent procedures of close down or bankruptcy, lack operability. The rights of shareholders are neglected. The legal nature and function of trusteeship are not clear. Inadequate legal basis is still a problem in practical operation. During the process of the application of the three abovementioned measures, Government guidance is provided more than needed, while market impulse is not enough, which will nourish new risk while resolving the existing risks.The fourth part presented several solutions to the problem raised in part three in the hope of perfecting the non-bankruptcy legal relief system of Chinese Securities Company. First of all, the principles of non-bankruptcy relief system must be established to ensure the success of crisis relief and reduce the forming of moral crisis. Next, the procedures of non-bankruptcy relief system should be improved to reduce improper intervention of administration. Finally, the self relief system of securities company must also be improved, which includes the reorganization of securities company, determining rights of shareholders, strengthen individual legal responsibilities of the relieved parts and the relieving parts.