Study On Legal Issues Of Litigation In Chinese Compulsory Liquidation

Under perfect framework of corporate law system, low threshold and perfect marketmechanism should be set up in market entry and exit. Our country present companyliquidation system is determined as "normal liquidation, compulsory liquidation andbankruptcy liquidation". Compulsory liquidation procedures which is as complementto the normal liquidation procedures, comparing with foreign special liquidationprocedure, have some common and different points. So its functional orientation hassome unique places. On the other hand, whether compulsory liquidation can bedeveloped into a stage that fit with Chinese characteristics is worthy of studying.There are many problems in Chinese compulsory liquidation. For example, in practice,parties tend to abuse their right of suit in compulsory liquidation which might infringeother parties’ rights and interests. As another example, the absence of detailed ruleswould make the compulsory liquidation procedure more complicated andunreasonable delayed. As a result, the rights and interests of the parties are unable toget timely maintained. The reasons why these problems emerge in compulsoryliquidation is complex. Is the absence of detailed rules, or the judicial supervision notreaching the designated position, or even the responsibility of the administrative authority leading to these problems? This article focuses on study of theories,exploring external and internal difficulties in legal issues of litigation in Chinesecompulsory liquidation in order to truly refine the rules of compulsory liquidationsystem, to implement values of compulsory liquidation, to put forward meaningfulviews and suggestions from the legislative, judicial, administrative angles.This article is divided into three parts: introduction, main body and conclusion. Themain body is divided into four chapters.The first chapter puts forward the problems and expounds the core concepts. First ofall, starting from a compulsory liquidation case from Shaoxing City IntermediatePeople’s court, which leads to the core issues in this paper: legal issues of litigation incompulsory liquidation, and clarify the concept of specific legal issue in this case,"litigation of dissent confirm". After analyzing this case, the existing problems are putforward in the form of questions, and leading some thinking on various types of legalissues of litigation under compulsory liquidation problem.The second chapter expounds historical development and basic theories ofcompulsory liquidation. First of all, the paper expounds the historical developmentand status quo of Chinese compulsory liquidation. Second, the paper elaborates thebasic theory of compulsory liquidation, and analyzes system value and the functionorientation which basing on the company system and liquidation system. Finally,through the comparison research, the paper analyzes the structure and advantages ofthe special liquidation system in Japan and Taiwan region, and expounds somesuggestions on how to apply to Chinese compulsory liquidation.The third chapter is about the analysis of the existing legal issues of litigation incompulsory liquidation. First of all, the paper expounds the external difficulties incompulsory liquidation procedure which is mainly about difficulties in determination in parties and jurisdiction. Second, the paper expounds the internal difficulties incompulsory liquidation procedure which is mainly about difficulties in proceduralcosts and omission in detailed rules. Finally, the paper focuses on analyzing negativeinfluence from problems in legal issues of litigation in compulsory liquidation.The fourth chapter is about suggestions. In view of the above problems, the papergives advices from three aspects. First, in terms of legislation, the paper puts forwardsome ideas for reference on how to perfect the structure of the legislation, how toperfect the corresponding system and how to reference foreign special liquidationsystem. Secondly, in terms of the judicial level, the paper puts forward some ideas onhow to reinforce discretion and how to strengthen juridical power on supervision incompulsory liquidation. Thirdly, in terms of administration, the paper puts forwardsome ideas on how to introduce coordination mechanism from administrativeauthority and how to link up the executive power and judicial power in compulsoryliquidation.The Article ultimately aims to clarify the content of the legal issues of litigation incompulsory liquidation in order to optimize the compulsory liquidation procedure, torealize the value of compulsory liquidation.