Research On The Rules For Initiating Bankruptcy Of Substantial Merger Of Related Enterprise

In the context of global economic integration,enterprises will choose to expand production scale in order to increase economic benefits while improving profits,reducing operating costs and preventing market risks.The most typical manifestation of this trend is the massive growth of affiliated companies.Legally,all companies with independent legal person status should assume limited legal liability with their own property.However,due to the development of market economy,the economic relationship between some affiliated companies has become increasingly close,which jeopardized the independent personality of the company and caused a series of hidden problems.Compared with the traditional bankruptcy of single company,the bankruptcy of affiliated company has its own characteristics.The current bankruptcy law rules lack pertinence to the bankruptcy of affiliated companies.The commencement of bankruptcy is an important node of whether a company can smoothly go bankrupt.It is reflected in every link from filing bankruptcy application to accepting bankruptcy procedure,including the reasons for filing bankruptcy application,filing bankruptcy application,which court is under the jurisdiction,how to accept bankruptcy application and other key issues.The provisions of Chinese bankruptcy law on bankruptcy system are based on a single company.It does not specify how to apply bankruptcy procedures to such special types as related enterprises.For the affiliated enterprises that meet the conditions of substantive merger,if they still adopt the traditional bankruptcy method,the bankruptcy procedure of some affiliated enterprises will cause damage to the interests of creditors.Specifically,these affiliated enterprises generate internal debts through abnormal transfer of interests before bankruptcy,which directly damages the interests of creditors.Therefore,in the process of exercising the rights of creditors,their legitimate rights and interests are difficult to be effectively protected,which is unfair to creditors.At present,the bankruptcy law does not regulate such illegal activities among related enterprises.On the other hand,the bankruptcy law can not solve many other problems in the launching procedure of related enterprises.It has some limitations in the process of bankruptcy launching procedure of related enterprises.Therefore,it is urgent to conduct systematic research on the initiation procedure of the substantive merger of affiliated enterprises,so as to ensure that the majority of market entities,including affiliated enterprises,can get fair repayment of debts,protect their interests and save the enterprises through orderly bankruptcy in accordance with the law.