On The Protection Of Small Ordinary Creditors’ Rights And Interests In Enterprise Bankruptcy Reorganization

The protection of the rights and interests of small ordinary creditors should not be ignored in the bankruptcy reorganization of enterprises.Although small ordinary creditors have not become a fixed group of creditors in the Chinese enterprise bankruptcy law,it is stipulated in Article 82 of the Bankruptcy Law of the People’s Republic of China that the people’s court may decide to set up a small amount creditor group in the ordinary creditor group to vote on the draft reorganization plan when necessary.Meanwhile,in our current bankruptcy practice,the importance and influence of small ordinary creditors has become more and more prominent,which has received more and more attention.It is necessary to protect the rights and interests of small ordinary creditors.This lays a theoretical foundation for the study of this paper.First,small ordinary creditors rely on the bankruptcy reorganization process to recover their claims.The scale of claims can hardly bear the cost of reducing risks or claiming compensation through other means such as adjusting contract terms and civil litigation.Second,small ordinary creditors face their own dilemmas.For example,the creditor has a small voice,and the liquidation of claims is easy to involve the survival problem,but the creditors does not have additional means of guarantee.Third,protecting the rights and interests of small ordinary creditors is conducive to the efficient promotion of reorganization procedure.While facilitating bankruptcy administration and improving voting efficiency,we should maintain public interests and social order to avoid serial debt crises or mass incidents.The protection of the rights and interests of small ordinary creditors has not yet formed a unified and perfect system.On the premise of understanding and respecting the differences between small ordinary creditors and other ordinary creditors,this paper analyzes and summarizes the status quo of the rights and interests of small ordinary creditors in bankruptcy reorganization practice.In China,there are two main methods:to set up a small amount creditor group or to pay off ordinary creditor’s rights in stages according to the amount of claims.Other countries also provide protection by means of liquidation outside the reorganization plan,limiting the priority of bankruptcy,strengthening the autonomy of small ordinary creditors,and class proofs of claim in bankruptcy.By comparing and analyzing domestic and foreign situation,we found that there are still some shortcomings in our related system and practice.One is the absence of law.It lacks the classification standard of small ordinary claims,the legal basis for subsection repayment of ordinary claims,and the system to regulate the transaction of bankruptcy claims.Second,the autonomy of small ordinary creditors is insufficient.Third,it is easy to damage the interests of other creditors when setting up a small amount creditor group or paying off ordinary creditor’s rights in stages according to the amount of claims.It mainly includes large ordinary creditors,creditors on the dividing line,and some dissenting creditors.Through comprehensive analysis,comparison and reflection,this paper finally puts forward some suggestions to safeguard the rights and interests of small ordinary creditors in the reorganization procedure of enterprises in China.From the macro level,it is necessary to follow certain concepts and principles,namely the principle of equity as the core,the principle of efficiency as the guide,the principle of creditor autonomy as the path.From the specific level,it is necessary to fill the relevant legal vacancy,give full play to the judicial function,improve the relevant legal services.The ultimate goal is to let small ordinary creditors as a class of creditors to express their overall interests,help small ordinary creditors to achieve more effective substantive justice and procedural justice in the process of bankruptcy reorganization,and finally effectively protect the rights and interests of small ordinary creditors.