Research On The Simplified Reorganization System Of Small And Medium-sized Enterprises

In recent years,China has developed rapidly.become the main body to absorb social employment,For the economic development of our country.and becoming an indispensable part of my country’s market economy.Compared with large enterprises,SMEs have the advantages of small operating scale and relatively flexible organizational structure,but they also have many disadvantages such as small size,insufficient capital,small market share,poor operating environment,and weak financing ability.In China,there is currently no restructuring system specifically designed for small and medium-sized enterprises,and the restructuring system in China’s bankruptcy law is formulated based on Chapter 11 of the United States Bankruptcy Law,with the background of large company restructuring,which has obvious incompatibility with small and medium-sized enterprises.Since 2018,courts in various regions of China have been actively exploring simplified trial mechanisms.Against the aforementioned background,it can be concluded that it is necessary to establish a simplified reorganization system for small and medium-sized enterprises in China.To achieve effective restructuring of small and medium-sized enterprises in China,simple procedures can be used to save costs for them and better protect their development.Only then can the functions of small and medium-sized enterprises in promoting employment,improving income levels,and promoting healthy socio-economic development be fully utilized.This article compares and analyzes the simplified reorganization systems of small and medium-sized enterprises in countries such as the United States,Japan,South Korea,India,Saudi Arabia,and Singapore,and concludes that under the bankruptcy reorganization system,differentiated simplified reorganization systems should be established,the scope of small and medium-sized enterprises should be clearly defined,the scope of applicable entities should be increased,the cost of reorganization for small and medium-sized enterprises should be reduced,and the parallel implementation of DIP(debtor model)and permanent manager model should be implemented Simplify the investigation and application methods,and improve the approval rate of the reorganization draft.This article believes that building a simple reorganization system for small and medium-sized enterprises in China is not a simple simplification of the procedural process,but should achieve comprehensive simplicity in the integration of governance structure in both physical and procedural aspects.Firstly,it is necessary to clarify the scope of enterprises to which the simple reorganization system applies.Secondly,establish a restructuring management model that focuses on debtor management and manager supervision,establish a separate creditor committee,improve specific restructuring procedures,and establish a prevention mechanism for procedural abuse.Once again,establish a value recognition mechanism for the restructuring of small and medium-sized enterprises.Finally,establish a pre restructuring system for small and medium-sized enterprises and corresponding guarantee mechanisms.By constructing the above systems,we aim to ensure efficient coordination among all aspects of the system and maximize its simplicity.