The Interests Conflict And Balance Of The Multi-participants Of Corporate Reorganization Procedure

The biggest highlight of the new Enterprise Bankruptcy Law of the People’s Republic ofChina,which has effected on June12007, is the establishing the system of Corporatereorganization. The new law has dedicated a whole chapter on the reorganization system toemphasize the importance of the reorganization. Reforming this system makes our bankruptcylaw is not just a market economy exiting law, death law and elimination law, but also hasbecame an enterprise rehabilitation law, restore vitality law and save law.The world financial crisis and global economic collapse in the past decades leads to thecollapse of many companies, and highlights the necessity of Corporate reorganization forsome enterprises which still have a hope to suvive.The interests of multi-participants inCorporate reorganization, such as the creditors’ interests, the debtor’s interests, shareholders’interests and the social public interests, has been the focus of various jurists’ analysis andresearch all the time. The author thinks that the key to maximize the efficiency of theCorporate reorganization is the role orientation and the balance of everyone’s interests."Theproblems of interests are the source of all problems." Based on the balancing principle,theauthor describes the problems about the conflict and balance of multi-participants’ interest inreorganization procedure, and has some brief analysis of the actual system design of somenational Corporate reorganization procedures, then sets some re-engineering opinions to ourprovisions to promote the progress of the bankruptcy and reorganization law.This article includes introduction,body and conclusion,the main part is divided into threeparts.The introduction descripts the definition and history of Corporate reorganization briefly,compares the development of the history of bankruptcy law and points out the essentialdifference between reorganization procedures, liquidation procedures and reconciliationprocedures----protecting the interests of all parties.The first part of the article starts from the jurisprudence angle to briefly describes therelationship between interests and law. After the analysis of the multi-participants’ interests inCorporate reorganization, it focuses on the conflict between the interests of all parties andleads to the following study----the balance of interests in the whole system.The second part is the core of the whole article. First, it has brief description of thenecessity and possibility of multi-participants’ interests balance in Corporate reorganization system; then it analysises the status and importance of everyone’s interests in thereorganization procedures from the jurisprudence angle; finally it compares the legalprovisions design from the start to the end in Corporate reorganization, which explains thespecific protection measures in Corporate reorganization practice to points out theshaortcomings in the reorganization system, paving the way for the following suggestions forimprovement.The last part provides some suggestions to improve China’s Corporate reorganization. Inthe view of introducing Corporate reorganization legislation is late, and the time ofimplementation is short, there are many problems either in the system designing or in thespecific practice, so the author puts forward several improvement suggestions of the legalprovisions in this part for consideration.