A comparative study of the corporate bankruptcy reorganization law of the U.S. and China
PhD ceremony: Ms. Y. Ren, 14.45 uur, Doopsgezinde kerk, Oude Boteringestraat 33, Groningen
Dissertation: A comparative study of the corporate bankruptcy reorganization law of the U.S. and China
Promotor(s): prof. F.M.J. Verstijlen, prof. O. Couwenberg
Faculty: Law
The US and Chinese bankruptcy reorganization laws are quite similar in respect of the main structures, concludes Yongqing Ren. The Chinese bankruptcy reorganization law is basically a product of transplanting the US law. In the transplantation, the Chinese legislators made certain modifications. Some valuable parts of the US law are not properly incorporated into the Chinese law. This leads to the problematic designs of the Chinese bakruptcy law (EBL), the most prominent being the inadequate protection of the creditors’ interest under the automatic stay, the unreasonable classification, improper design of the shareholders’ voting right, the loose confirmation requirements. On the whole, the comparison has showed that the Chinese law and practice are much less developed than its US counterparts. The prominent manifestation of the immature nature of the Chinese reorganization law and practice is the lack of the best-interest test and feasibility test for consensual plans, the lack of a complete provision on the absolute priority rule, the loose feasibility standards, and the negligence of the proper valuation of the debtor’s reorganization value. The Chinese reorganization law needs to be improved in many aspects and that at the early stage of the reorganization practice, the reorganization proceeding is just a device of legally getting rid of unsecured debts. Taking into account that a market economy based on the rule of law has not been completely established in China and that market-based bankruptcy reorganization law has a history of less than four years, the immature nature of the Chinese law and practice is understandable and the achievement of the Chinese legislative achievement is great, concludes Ren.
Last modified: | 13 March 2020 01.10 a.m. |
More news
-
15 April 2025
The Faculty of Law launches podcast The Right to News
On 16 April 2025, the Faculty of Law at the University of Groningen will launch the first episode of its podcast The Right to News (in Dutch: Recht op Nieuws). The theme of the first episode is: “Can the government just ban organizations in the...
-
14 April 2025
12 Marie Sklodowska Curie Doctoral Networks for the University of Groningen
The University of Groningen has achieved very good results in the last round of Marie Sklodowska Curie Doctoral Networks.
-
24 March 2025
UG 28th in World's Most International Universities 2025 rankings
The University of Groningen has been ranked 28th in the World's Most International Universities 2025 by Times Higher Education. With this, the UG leaves behind institutions such as MIT and Harvard. The 28th place marks an increase of five places: in...