The Research On The Bankruptcy Capacity Of Private Schools In China

In recent years, under the guidance of diversification and industrialization, the process ofeducation in China is gradually accelerated, private education has made remarkableachievements, to meet the society and people’s increasingly urgent educational needs, privateschools have mushroomed and vigorous development. According to the Ministry ofEducation’s statistical data in2010, there were119,000private schools and339,296,00students studied in these private schools. The private school has becoming a compelling forcein the field of education. However, it must be paid attention that the problems not to beignored exist behind the rapid development of these private schools. Among these problems，private school’s withdrawal mechanism is the most important question. With the decreasing ofthe school-age children, the competition between private schools becoming more fiercely. It isvery common to find private schools wind up or in bankruptcy status recently. However, theregulation of private schools’ exit mechanism is quite incomplete in China. This dissertationbelieved that as the equal market player, private schools not only have the capacity ofbankruptcy, but also the capacity of reconciliation and restructuring. As the nature ofnon-profit organization, this dissertation described the theoretical and practical basis toconfirm private schools’ capacity of bankruptcy, in order to provide a completely new legalpath for the private schools withdrawal market.