Home / News Type Content Tools: Save | Print | E-mail | Most Read | Comment
Legal Processes Involving Bankruptcy to Be Tightened
Adjust font size:
China's Supreme People's Court Thursday announced new regulations to tighten the legal processes involving bankruptcy.

The new regulations would better protect the rights of employees of bankrupt businesses and prevent debtors from evading debts by claiming bankruptcy, said Liu Guoguang, vice president of the Supreme People's Court.

According to the new regulations, employees of bankrupt companies are the preferred creditors in the process of liquidating company debts. Employees' salaries and financial compensation due should be treated as top priority, followed by government taxation and creditors' rights.

By making such stipulations, the regulations embody the principle of protecting ordinary workers which will play a positive role in maintaining social stability, Li said at a news briefing.

The regulations, to be implemented as of Sept. 1, also stipulate that people suspected of making fake bankruptcy claims or found illegally transferring property before filing for bankruptcy will be dealt with by relevant government departments according to law.

The regulations also clarify issues including tightening procedures in bankruptcy cases, enhancing supervision over the trial of such cases, and improving property distribution measures.

This is the second time that the Supreme People's Courts has presented an overall and systematic interpretation of the law on bankruptcy since it was formally enacted in 1988.

China has seen increasing bankruptcy lawsuits since the 1990s. From 1990 to 1997, Chinese courts at various levels dealt with a total of 16,100 lawsuits on bankruptcy.

(Xinhua News Agency August 2, 2002)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- WB Publishes Report on Bankruptcy of China's SOEs
- Procedures for Liquidation of Foreign-Funded Enterprises
- Enron Sends Alarm Bells Ringing in China, Too
- 80 Billion Yuan Slated for Mergers, Bankruptcies in 2002
- China Drafts New Bankruptcy Law
Most Viewed >>
- World's longest sea-spanning bridge to open
- Yao out for season with stress fracture in left foot
- 141 seriously polluting products blacklisted
- China starts excavation for world's first 3G nuclear plant
- 'The China Riddle'
- Irresponsible remarks on Hu Jia case opposed 
- China, US agree to step up constructive,cooperative relations
- 3 dead in south China school killing
- Factory fire kills 15, injures 3 in Shenzhen
- McDonald's turns to feng shui

Product Directory
China Search
Country Search
Hot Buys