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| China's top legislature, the Standing
Committee of the National People's Congress, on Sunday adopted a corporate
bankruptcy law, aiming to protect both creditors of bankrupt enterprises
and the people who work in them. (Photo:
CCTV.com) |
BEIJING, Aug 28
-- Now for further details of the new corporate bankruptcy law. The law will
come into effect in June next year and will benefit creditors and employees of
bankrupt enterprises. The new law states that all insolvent enterprises will pay
credit guarantees to creditors first, and use other assets to pay laid off
workers. It will apply to all kinds of enterprises and financial institutions.
Experts say the new law will also help boost foreign investors' confidence in
China. Current bankruptcy laws established twenty years ago, provide for laid
off workers to be paid before creditors. Officials say the new law is a big
improvement.
NPC standing committee legislative affairs deputy
director An Jian said:"First, it gives a much clearer and more concrete
clarification concerning the substance and procedures of bankruptcy. Secondly,
it contains a rule of how to reorganize bankrupted enterprises. Thirdly, it has
changed the sequence of payments after bankruptcy. It is well suited to the
country's current situation."
(Source: CCTV.com)
Related sotry:
China's legislature adopts corporate
bankruptcy law
BEIJING, Aug. 27 (Xinhua) -- China's top legislature, the
Standing Committee of the National People's Congress, on Sunday adopted a
corporate bankruptcy law, aiming to protect both creditors of bankrupt
enterprises and the people who work in them.
The law will come into effect on June 1, 2007. The current
enterprise bankruptcy law will be abolished at the same time. full
story>>
|
[Special Report]
