Research on the Chinese Company’s Liquidation System

Purpose - According to the “Company Law of the People’s Republic of China” (hereinafter referred to as the “Company Law”) and related regulations, in the case of the company’s dissolution, shareholders or boards may form a liquidation team to liquidate the company. Design/Methodology/Approach - After fulfilling the liquidation procedure stipulated by the China Companies Law, cancellation is the main way for the company to withdraw. Wang Dingzhong (2022) research shows that In practice, many companies do not start the liquidation program after the dissolution. After the liquidation procedure is started, it cannot be liquidated normally. Findings - After many companies register, they have been in the state of non -reporting annual reports for a long time. Improving the company’s liquidation system and unblocking the exit of an abnormal company is an important part of the corporate law amendment. Research Implications - First of all, the professional liquidator system should be formulated to clarify the liquidation obligations and their responsibilities in the voluntary liquidation procedures. Secondly, formulate a liquidation supervision system, expand the subject that can apply for the court for mandatory liquidation, and give the people’s court supervision power in the mandatory liquidation procedure, and do a good job of the company’s liquidation and bankruptcy liquidation. Again, the relevant legislative provisions of the company’s liquidation system are constantly improving, clearly stipulate the civil liability of the liquidation person.