Laying down the bankruptcy law
The implementation of China’s bankruptcy law has been mired by the inconsistent standards and interpretations of various courts. A new set of measures offers more guidance and clarity, especially in pinpointing bankruptcy causes and who assumes the burden of proof
Issue: December 2011/January 2012
Keywords (click to search):
bankruptcy
SG & Co
The Provisions on Several Issues Concerning the Application of the «PRC Enterprise Bankruptcy Law» (1) (关于适用《中华人民共和国企业破产法》若干问题的规定(一)) (EBL Interpretation) has been in effect since September 26 2011.
Background of the EBL Interpretation
The PRC Enterprise Bankruptcy Law (中华人民共和国企业破产法) (Bankruptcy Law) was enacted on June 1 2007, and since then it has been playing a positive role in rescuing enterprises caught in a critical situation, ensuring the fair and orderly compensation of claims.
The Bankruptcy Law can only be implemented through the acceptance and hearing of bankruptcy cases by the People’s Court. However, in practice some courts still don’t fully realise the significant role of the Bankruptcy Law in regulating the market economy. This, combined with different problems existing in the current bankruptcy system and its mechanisms, affects the implementation of the Bankruptcy Law. In fact, some courts don’t place certain cases on file for a variety of reasons, even...
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