Government Intervention in the Reorganisation of Listed Companies in China

"The 2006 EBL is highly praised for its modernisation and its reference to the experience of the United States (US). Three examples help to explain this. A statutory corporate reorganisation regime has been introduced; the role of the people's court has been changed from simply that of a 'procedural declarer' of the bankruptcy of SOEs controlled by the government under the 1986 EBL to that of an actual controller of bankruptcy proceedings under the 2006 EBL, and a market-based administrator mechanism has been established, replacing the liquidation group, which consisted of government officials only"--