Research On The Improvement Of The Bankruptcy Reorganization Plan System Of Listed Companies In China

With ultimate enactment of the new Bankruptcy Law that came into force on June 1,2007,came a system innovation that amounts to a substantial policy breakthrough,and notably,the bankruptcy reorganization system for enterprises is highlighted in the new Law.This system is revolutionary in effect in the field of bankruptcy law and has successfully done away with the stigma of the title,"corporate death law”,attached to it.Nevertheless,there remain a lot of problems in reality to grapple with,given the incompleteness of the provisions on reorganization plans of this sort,and the absence of nuanced actions in support of certain legal systems,and that judicial interpretations are yet to be promulgated in that regard,and that some issues are omitted and remain uncovered by law.This essay,through a study on the formulation,voting and approval process in connection with bankruptcy reorganization plans of listed companies,aims to elucidate the status and major causes of bankruptcy reorganization plans of such companies,which is followed by suggestions proposed for solutions.The Part One:Elaborating on the basic theory of bankruptcy reorganization system and bankruptcy reorganization plan.Transiting from the development background of bankruptcy reorganization system to the analysis on the bankruptcy reorganization plan of bankruptcy reorganization system,the definition,function and so on of bankruptcy reorganization plan of listed companies.The Part Two:Analyzing and discussing the present situation and the existing problems of the bankruptcy reorganization plan of the listed companies in China.Through the statistics of relevant data and the sorting and analysis of real cases concerning the bankruptcy reorganization of listed companies,it is found that the bankruptcy reorganization plan of listed companies in China is deviated from legislative intent and interpretation of the law is too vague;voting on the reorganization plan is confronted with the restrictions on medium-and-small shareholders' equity because of "the predominance of one shareholder" and the lacking of law concerning the grouping;as for the court-led court approval,on the one hand,the normal approval and review criteria are neither rigorous nor operational;on the other hand,during the compulsory approval,the court has abused power and intervened too much.The Part Three:Introducing the relevant legal systems and practices of bankruptcy reorganization plan abroad.The introduction of the legal systems of the United States,Japan and U.K.used for solving the bankruptcy plan of listed companies in practice has certain referential significance for China's perfecting the creditor grouping,the exercise of shareholders' voting right and public power constraints,etc.The Part Four:The following suggestions for improvement are put forward through analyzing the problems during the bankruptcy reorganization plan of listed companies:enriching the bodies for developing the reorganization plan and specifying the provisions onextending the term;increasing voting modes for medium-and-small shareholders' equity and improving the grouping rules,etc.;refining the review rules for normal approval,restricting the abuse of power and reducing administrative interference of the intermediate people ' s court.