BEIJING, Aug. 22 (Xinhua) -- Financial supervision
institutions could apply for bankruptcy for financial institutions in solvency,
under a draft Corporate Bankruptcy Law in front of China's legislatures.
Under certain circumstances, the financial
supervision institutions could also apply to the court for suspension of the
bankruptcy process of the financial institutions, under the proposed law.
To make special regulation on the bankruptcy of
financial institutions in China's Corporate Bankruptcy Law marks that China
began to standardize the bankruptcy of financial institutions on the legal
level, said experts in law.
According to the draft, China's financial supervision
institution under the State Council could apply to the people's courts for
reshuffle and bankruptcy of financial institutions including commercial banks,
insurance and securities companies when they cannot pay off debts due or meet
solvency.
This is the third time for the draft to be put in
front of the legislatures.
Jiang Qiangui, deputy head of the legal affairs
committee of the National People's Congress, said to make special regulations
for bankruptcy of financial institutions in the Corporate Bankruptcy Law is
proposed during the second discussion of the draft by the legislature.
According to the original draft, application for
bankruptcy could only be proposed by debtors or creditors. However, as for
financial institutions in insolvency, it is necessary to allow financial
supervision institutions to apply for bankruptcy instead of them to prevent
further losses when the companies refused to make the application.
To prevent creditors of financial institution in the
proceedings of bankruptcy to preempt assets before the supervision institutions
to perform takeover or trusteeship, the financial supervision institutions
should be empowered to apply for suspension of the bankruptcy process.
Bankruptcy laws have been slow to take effect in
China, but laws on state-run companies took effect in 1986 without making any
particular provisions on bankruptcy of financial institutions.
By the end of last year, China closed down 3,658
projects through policy way. Beijing, Shanghai, and the provinces of Jiangsu,
Zhejiang and Fujian has stopped bankruptcy through policy way and turned to
perform bankruptcy of companies or institutions according to law. Enditem
Workers' pay top priority in
bankruptcy settlement: draft law
BEIJING, Aug. 22 (Xinhua) -- Employees will be first in line for payment --
ahead of tax offices and debtors -- if their company goes bust under a draft
Corporate Bankruptcy Law in front of China's legislature.
Workers' salaries, medical insurance and job-related
injury benefits should be paid first a business files for bankruptcy, before
paying off overdue taxes and business debts, under the proposed law.
Property law should equally protect
public, private property: lawmaker
BEIJING, Aug. 22 (Xinhua) -- A senior Chinese
lawmaker said here Tuesday China's property law, which is still in the
formulation, should reflect China's basic economic system and also the principle
of equal protection of state, collective and private property.
Hu Kangsheng, vice-chairman of the NPC Law Committee,
said Tuesday at an ongoing session of the Standing Committee of the National
People's Congress.
Anti-drug law considered to enhance drug
monitoring
BEIJING, Aug. 22
(Xinhua) -- China plans to enhance its monitoring network for drugs and promote
international cooperation to stamp out drug trafficking with the country's first
bill on drug control.
Opium, heroin, marijuana, "the ice" -- methamphetamine
hydrochloride, morphine, and cocaine are spelled out as banned drugs.
