Bankruptcy of enterprises under the novel coronavirus epidemic Ⅰ

 2020-02-21  1271


                                                                                   


When the epidemic is developing, enterprises are faced with a lack of revenue, industrial chain is destroyed and many enterprises with uncertain prospects and tight capital chain are facing life and death. According to incomplete statistics, more than 95% of small and medium-sized enterprises cannot support their cash flow for three months. Since the capital is the blood of enterprises, if it is short, they will be hard to survive. Sturdy grass withstands high winds. The outbreak has put the risk management capabilities of small enterprises to the test and everyone is swimming naked. It can be seen that when the enterprise cannot improve the revenue, how to reduce the enterprise cost has become the most important topic.


When the market is normal, the outflow of enterprise resources is usually manifested in the enterprise's costs, expenses and liabilities, etc. including personnel salary, rent, utilities, interest on financing, compensation for breach of contract, accounts payable and some hidden opportunity costs. It is believed that in the next few months or even longer, corporate rescue and self-help will become the policy direction and the main issue that majority of business owners will consider. If they still cannot make through, dissolution and bankruptcy will be problem that the business owners will have to face, so how to smooth the dissolution or bankruptcy, there are a lot to discuss.


As to the most common limited liability company, it begins with registration and ends with deregistration. Deregistration means termination. Liquidation is a necessary step before deregistration. It shall liquidate according to law when the reasons of dissolution occur. Article 180 of the Company Law stipulates the reasons to dissolute includes:

The term of business prescribed in the Articles of Association expires or other causes for dissolution prescribed in the Articles of Association occur;

The shareholders' meeting or the shareholders' assembly decides to dissolve the Company;

Dissolution is required due to merge or division of the Company;

Its business license has been revoked or it has been ordered to close down or revoked according to law;

The people s court decides to dissolute according to Article 182 herein;


The Article of 183 stipulates that the company shall set up a liquidation team within 15 days after the reason of dissolution occurs and start the liquidation when it decides to liquidate according to Item1, 2, 4 and 5 of Article 180.


The liquidation team of a limited liability company shall be composed of the shareholders, and that of a joint stock limited company shall be composed of the directors or persons determined by the shareholders' meeting.If a liquidation team is not established within the time limit, the creditor may apply to the people's court to designate relevant personnel to form such a team. The people's court shall accept the application and organize it in a timely manner.The debts of the enterprise shall be liquidated, and the remaining assets after the repayment of debts to creditors shall be shared by the owner. After the liquidation is completed, the cancellation of the enterprise shall be done. It can be seen that successful liquidation is a prerequisite for enterprise cancellation. When dissolution causes occur, in theory, independent liquidation of enterprises does not necessarily reach the degree of insolvency, which is a peaceful way to exit the market, but in reality, it is often a way for enterprises to take when their operation is in crisis.


When going into the process of liquidation, the enterprise is survival, but not engaged in transactions other than liquidation. The liquidation team member shall assume liquidation responsibility, which includes preparing the property listing, clearing taxes and fees, and informing all known and unknown creditors respectively by direct notification and public announcement.


If creditors' interests are damaged due to loss of account book vouchers, concealment of assets, failure to notify creditors, negative delay in liquidation, etc., members of the liquidation team shall bear the liabilities, the most important manifestation of which is joint and several liability for the company's debts. The law stipulates that the members of the liquidation group shall be acted by shareholders, directors and controllers, which also reflects the principle that is the members of the liquidation team know or should know the operation status of the enterprise, have the right to control the enterprise, have the management information of the enterprise and have the right to perform their duties, and shall become the subject of the liquidation responsibility.


To be continued.


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