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Legal Research on Powers to Business Operation under Reorganization

Author: ZhangWenZhe
Tutor: LiShuGuang
School: China University of Political Science
Course: Civil and Commercial Law
Keywords: Reorganization Powers to business operation mode Protection limitation
CLC: D922.291.92
Type: Master's thesis
Year: 2009
Downloads: 92
Quote: 3
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Abstract


The new Enterprise Bankrupcy Law of PRC took effect on June 1, 2007, introducing the Reorganization system in China which has been widely implemented in practice, however, provisions for power to business operation in this law is too vague and scattered. The power to business operation, aroud which a series of bankrupcy systems are established, is essential and critical to the reorganization system aimed to help an enterprise survive from financial disaster. This thesis, based on relevant bankrupcy reorganization theories, through case study and comparison analysis, reviews and analyzes some basic and important legal problems regarding the power to business operation from the perspectives of its patterns, contents, protection and limitation. Consequencely, the author analyzes relevant provisions in the Enterprise Bankrupcy Law and proposes to improve the existing law regarding power to business operation.The structure of this thesis is made as follows:ChapterⅠis a general introduction to the power to business operation, including its evolving background and definition.ChapterⅡbriefly analyzes two patterns of prower to business operation with different subjects, DIP pattern and manager pattern, in respects of definition and legal status.ChapterⅢ, combined with legislations in other countries, introduces the contents of power to business operation, including operation right, financing right, option concerning business contract, right to cancel, right to propose a reorganization plan,right to appointment, etc.ChapterⅣdiscusses the legal protection and limitation of power to business operation. To protect the power to business operation, the rights of guaranteed creditors should be limited by law. On the other hand, the power to business operation is also limited by the operation scope and the creditors. During the protection and limitation, the court plays a balancing role.ChapterⅤreviews on the relevant provisions of the Enterprise Bankrupcy Law on the basis of the previous four chapters, and proposes to improve the existing law from three aspects: better choice of power to business operation pattern, protection for the power to business operation, legislation on limition to power to business operation, and strenthening the balancing role of courts in reorganization system.

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