| The rescue and exit mechanism of affiliated enterprises is an issue that requires attention and focus in the legal profession under the continuous development of market economy,especially in the field of bankruptcy law,which is also a key concern in the current revision process of China’s bankruptcy law.The bankruptcy of affiliated enterprises in substance,also known as "substantive consolidation bankruptcy",is a legal effect that maximises the interests of all creditors by consolidating the assets of the members of the affiliated enterprises and thereby adjusting and balancing the interests of all parties,but this type of bankruptcy of affiliated enterprises also threatens the traditional company law and challenges The limited liability regime and the independence of legal personality.The current legal system of corporate insolvency does not regulate substantive consolidation,and the latest judicial documents only provide brief guidelines on the subject.As a result,it remains unclear how the substantive consolidation regime should be applied under our current law.In addition,research on substantive consolidation in China has focused on the admissibility criteria and lacked research on its commencement,which has led to ambiguous provisions on the commencement of substantive consolidation in legislation and inconsistent judicial practice in various places.The commencement of substantive consolidation can be divided into four stages,namely application,jurisdiction,review and admissibility,therefore,the study of the commencement of substantive consolidation is mainly aimed at addressing the following four issues:firstly,the issue of commencement of proceedings,i.e.the issue of the mode of commencement and the subject of the motion;secondly,the issue of jurisdiction,which includes the determination of the competent court and the issue of jurisdictional objections;thirdly,the issue of the subject of decision,i.e.Fourth,the admissibility criteria,i.e.what kind of affiliated enterprises can apply the system.This article discusses the above four issues in the light of domestic and international judicial practice,and concludes with recommendations on the various aspects of substantive consolidation of insolvency commencement to improve the theoretical research on the substantive consolidation commencement regime in China. |
