Law of the People's Republic of China on Enterprise Bankruptcy (For Trial Implementation)

 

第一章 总 则

CHAPTER I GENERAL PROVISIONS

 

第一条 为了适应社会主义有计划的商品经济发展和经济体制改革的需要，促进全民所有制企业自主经营，加强经济责任制和民主管理，改善经营状况，提高经济效益，保护债权人、债务人的合法权益，特制定本法。

Article 1. This Law is formulated in order to suit the development of the planned socialist commodity economy and the needs of the reform of the economic structure, to promote the autonomous operation of enterprises owned by the whole people, to strengthen the economic responsibility system and democratic management, to improve the state of operations, to increase economic efficiency and to protect the lawful rights and interests of creditors and debtors.

 

第二条 本法适用于全民所有制企业。

Article 2. This Law applies to enterprises owned by the whole people.

 

第三条 企业因经营管理不善造成严重亏损，不能清偿到期债务的，依照本法规定宣告破产。

Article 3. Enterprises which, owing to poor operations and management that result in serious losses, are unable to repay debts that are due shall be declared bankrupt in accordance with the provisions of this Law.

 

企业由债权人申请破产，有下列情形之一的，不予宣告破产：

Enterprises for which creditors file for bankruptcy shall not be declared bankrupt under any of the following circumstances:

 

（一）公用企业和与国计民生有重大关系的企业，政府有关部门给予资助或者采取其他措施帮助清偿债务的；

(1) public utility enterprises and enterprises that have an important relationship to the national economy and the people's livelihood, for which the relevant government departments grant subsidies or adopt other measures to assist the repayment of debts;

 

（二）取得担保，自破产申请之日起六个月内清偿债务的。

(2) enterprises that have obtained guarantees for the repayment of debts within six months from the date of the application for bankruptcy.

 

企业由债权人申请破产，上级主管部门申请整顿并且经企业与债权人会议达成和解协议的，中止破产程序。

With respect to enterprises for which creditors file for bankruptcy, bankruptcy proceedings shall be suspended against those for which the superior departments in charge have applied for reorganization, and if the enterprise and the creditors have reached a settlement agreement through consultation.

 

第四条 国家通过各种途径妥善安排破产企业职工重新就业，并保障他们重新就业前的基本生活需要，具体办法由国务院另行规定。

Article 4. The state through various means shall appropriately arrange for the reemployment of the staff and workers of bankrupt enterprises, and shall guarantee their basic living needs prior to reemployment; specific measures shall be separately stipulated by the State Council.

 

第五条 破产案件由债务人所在地人民法院管辖。

Article 5. Bankruptcy cases shall be under the jurisdiction of the people's courts in the location of the debtor.

 

第六条 破产案件的诉讼程序，本法没有规定的，适用民事诉讼程序的法律规定。

Article 6. Where this Law has not stipulated the procedures for bankruptcy cases, the legal provisions for civil procedures shall apply.

 

第二章 破产申请的提出和受理

CHAPTER II THE SUBMISSION AND ACCEPTANCE OF BANKRUPTCY APPLICATIONS

 

第七条 债务人不能清偿到期债务，债权人可以申请宣告债务人破产。

Article 7. Where the debtor is unable to repay debts that are due, the creditors may file to declare the debtor bankrupt.

 

债权人提出破产申请时，应当提供关于债权数额、有无财产担保以及债务人不能清偿到期债务的有关证据。

When the creditor is submitting the bankruptcy application, it should provide relevant evidence relating to the amount of the claim, whether or not it is secured with property, and to the inability of the debtor to repay debts that are due.

 

第八条 债务人经其上级主管部门同意后，可以申请宣告破产。

Article 8. The debtor, upon the agreement of its superior departments in charge, may apply for the declaration of bankruptcy.

 

债务人提出破产申请时，应当说明企业亏损的情况，提交有关的会计报表、债务清册和债权清册。

When the debtor is submitting the bankruptcy application, it shall explain the circumstances of the enterprise's losses and deliver relevant accounting statements, a detailed list of debts and a detailed list of claims.

 

第九条 人民法院受理破产案件后，应当在十日内通知债务人并且发布公告。人民法院在收到债务人提交的债务清册后十日内，应当通知已知的债权人。公告和通知中应当规定第一次债权人会议召开的日期。

Article 9. After the people's court has accepted a bankruptcy case, it shall notify the debtor within ten days and make a public announcement. Within ten days after receiving the detailed list of debts delivered by the debtor, the people's court shall notify known creditors. The public announcement and notice shall stipulate the date of the first convening of the creditors' meeting.

 

债权人应当在收到通知后一个月内，未收到通知的债权人应当自公告之日起三个月内，向人民法院申报债权，说明债权的数额和有无财产担保，并且提交有关证明材料。逾期未申报债权的，视为自动放弃债权。

Creditors who have been notified shall, within one month after receiving the notice, and creditors who have not been notified shall, within three months after the date of the public announcement, report their claims to the people's court and explain the amount of the claims, as well as whether or not they are secured with property, and also deliver relevant materials of proof. Creditors who do not report their claims during these periods shall be deemed to have automatically abandoned their claims.

 

人民法院对有财产担保债权和无财产担保债权的申报，应当分别登记。

The people's court shall register separately claims that are secured with property and claims that are not secured with property.

 

第十条 债权人提出破产申请的，债务人应当在收到人民法院通知后十五日内，向人民法院提交本法第八条第二款所列有关材料。

Article 10. Where creditors have made the bankruptcy application, the debtor shall, within 15 days after receiving the notice of the people's court, deliver to the people's court the relevant materials described in the second paragraph of Article 8 of this Law.

 

债务人为其他单位担任保证人的，应当在收到人民法院通知后五日内转告有关当事人。

If the debtor is a guarantor for another unit, it shall, within five days after receiving the notice of the people's court, in turn notify the relevant parties.

 

第十一条 人民法院受理破产案件后，对债务人财产的其他民事执行程序必须中止。

Article 11. After the people's court has accepted a bankruptcy case, other civil enforcement proceedings against the property of the debtor must be suspended.

 

第十二条 人民法院受理破产案件后，债务人对部分债权人的清偿无效，但是债务人正常生产经营所必需的除外。

Article 12. After the people's court has accepted a bankruptcy case, payment by the debtor to only some of the creditors is null and void, with the exception of payments required for the normal production and operations of the debtor.

 

第三章 债权人会议

CHAPTER III CREDITORS' MEETINGS

 

第十三条 所有债权人均为债权人会议成员。债权人会议成员享有表决权，但是有财产担保的债权人未放弃优先受偿权利的除外。债务人的保证人，在代替债务人清偿债务后可以作为债权人，享有表决权。

Article 13. All creditors are members of the creditors' meeting. Members of the creditors' meeting enjoy the right to vote, provided, however, that creditors with claims secured with property which have not abandoned their priority right to be repaid are excepted. Guarantors of the debtor, after having repaid debts on behalf of the debtor, may be deemed creditors, and enjoy the right to vote.

 

债权人会议主席由人民法院从有表决权的债权人中指定。

The chairman of the creditors meeting is designated by the people's court from among the creditors with the right to vote.

 

债务人的法定代表人必须列席债权人会议，回答债权人的询问。

The legal representative of the debtor must attend the creditors' meetings and answer the creditors inquiries.

 

第十四条 第一次债权人会议由人民法院召集，应当在债权申报期限届满后十五日内召开。以后的债权人会议在人民法院或者会议主席认为必要时召开，也可以在清算组或者占无财产担保债权总额的四分之一以上的债权人要求时召开。

Article 14. The first creditors' meeting is called by the people's court, and shall be convened within 15 days after the expiration of the period for reporting claims. Subsequent creditors' meetings are convened at such times as the people's court or the chairman of the meeting deems them necessary, and may also be convened on the request of the liquidation committee or of creditors whose claims comprise more than one fourth of the total amount of claims not secured with property.

 

第十五条 债权人会议的职权是：

Article 15. The functions and powers of the creditors' meeting are:

 

（一）审查有关债权的证明材料，确认债权有无财产担保及其数额；

(1) to examine materials of proof relating to the claims, and to confirm the amount of such claims and whether or not the claims are secured with property;

 

（二）讨论通过和解协议草案；

(2) to discuss and adopt a draft settlement agreement; and

 

（三）讨论通过破产财产的处理和分配方案。

(3) to discuss and adopt a plan for the disposition and distribution of bankruptcy property.

 

第十六条 债权人会议的决议，由出席会议的有表决权的债权人的过半数通过，并且其所代表的债权额，必须占无财产担保债权总额的半数以上，但是通过和解协议草案的决议，必须占无财产担保债权总额的三分之二以上。

Article 16. Resolutions of the creditors meeting are adopted by a majority of creditors with the right to vote present at the meeting; the amount of their claims must comprise more than half of the total amount of claims that are not secured with property, however, with respect to a resolution adopting a draft settlement agreement, such amount must comprise more than two thirds of the total amount of claims not secured with property.

 

债权人会议的决议，对于全体债权人均有约束力。

Resolutions of the creditors' meeting shall have binding force on all the creditors.

 

债权人认为债权人会议的决议违反法律规定的，可以在债权人会议作出决议后七日内提请人民法院裁定。

Creditors who consider the resolutions of the creditors' meeting to be contrary to the provisions of law may, within seven days after the creditors' meeting has made such resolutions, apply to the people's court for judgment.

 

第四章 和解和整顿

CHAPTER IV SETTLEMENT AND REORGANIZATION

 

第十七条 企业由债权人申请破产的，在人民法院受理案件后三个月内，被申请破产的企业的上级主管部门可以申请对该企业进行整顿，整顿的期限不超过两年。

Article 17. With respect to enterprises for which the creditors apply for bankruptcy, the superior departments in charge of the enterprise that is the subject of the bankruptcy application may, within three months after the people's court has accepted the case, apply to carry out reorganization of the enterprise; the period of reorganization shall not exceed two years.

 

第十八条 整顿申请提出后，企业应当向债权人会议提出和解协议草案。

Article 18. After an application for reorganization is submitted, the enterprise shall propose a draft settlement agreement to the creditors' meeting.

 

和解协议应当规定企业清偿债务的期限。

The settlement agreement shall stipulate the period in which the enterprise shall repay the debts.

 

第十九条 企业和债权人会议达成和解协议，经人民法院认可后，由人民法院发布公告，中止破产程序。和解协议自公告之日起具有法律效力。

Article 19. After the enterprise and creditors' meeting have reached a settlement agreement which has been recognized by the people's court, the people's court shall make a public announcement and suspend the bankruptcy proceedings. The settlement agreement shall have legal effect from the date of the public announcement.

 

第二十条 企业的整顿由其上级主管部门负责主持。

Article 20. The reorganization of the enterprise shall be supervised by its superior departments in charge.

 

企业整顿方案应当经过企业职工代表大会讨论。企业整顿的情况应当向企业职工代表大会报告，并听取意见。

The reorganization plan of the enterprise shall be discussed by the congress of the staff and workers of the enterprise. The circumstances of the reorganization of the enterprise shall be reported to the congress of the staff and workers of the enterprise and its opinion shall be heeded.

 

企业整顿的情况应当定期向债权人会议报告。

The circumstances of the reorganization of the enterprise shall be periodically reported to the creditors' meeting.

 

第二十一条 整顿期间，企业有下列情形之一的，经人民法院裁定，终结该企业的整顿，宣告其破产：

Article 21. During the period of reorganization, an enterprise in any of the following circumstances shall, upon judgment of the people's court, terminate reorganization and declare its bankruptcy:

 

（一）不执行和解协议的；

(1) not implementing the settlement agreement;

 

（二）财务状况继续恶化，债权人会议申请终结整顿的；

(2) continued worsening in its financial condition, for which reason the creditors' meeting has applied for the termination of reorganization; and

 

（三）有本法第三十五条所列行为之一，严重损害债权人利益的。

(3) committing any of the acts listed in Article 35 of this Law and seriously harming the interests of creditors.

 

第二十二条 经过整顿，企业能够按照和解协议清偿债务的，人民法院应当终结对该企业的破产程序并且予以公告。

Article 22. With respect to an enterprise that has undergone reorganization and is able to repay debts in accordance with the settlement agreement, the people's court shall terminate the bankruptcy proceedings for such enterprise, and also make a public announcement thereof.

 

整顿期满，企业不能按照和解协议清偿债务的，人民法院应当宣告该企业破产，并且按照本法第九条的规定重新登记债权。

With respect to an enterprise that, on the expiration of the period of reorganization, is unable to repay debts in accordance with the settlement agreement, the people's court shall declare such enterprise bankrupt, and shall re-register the claims in accordance with the provisions of Article 9 of this Law.

 

第五章 破产宣告和破产清算

CHAPTER V BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

 

第二十三条 有下列情形之一的，由人民法院裁定，宣告企业破产：

Article 23. In any of the following circumstances, after the judgment of the people's court, an enterprise shall be declared bankrupt:

 

（一）依照本法第三条的规定应当宣告破产的；

(1) if, in accordance with the provisions of Article 3 of this Law should be declared bankrupt;

 

（二）依照本法第二十一条的规定终结整顿的；

(2) if, reorganization has been terminated in accordance with the provisions of Article 21 of this Law; and

 

（三）整顿期满，不能按照和解协议清偿债务的。

(3) if, upon the expiration of the period of reorganization, is unable to repay debts in accordance with the settlement agreement.

 

第二十四条 人民法院应当自宣告企业破产之日起十五日内成立清算组，接管破产企业。清算组负责破产财产的保管、清理、估价、处理和分配。清算组可以依法进行必要的民事活动。

Article 24. The people's court shall, within 15 days after the date the enterprise is declared bankrupt, establish a liquidation team to take over the bankrupt enterprise. The liquidation team shall be responsible for the keeping, putting into order, appraisal, disposition and distribution of the bankruptcy property. The liquidation team may carry out necessary civil actions in accordance with law.

 

清算组成员由人民法院从企业上级主管部门、政府财政部门等有关部门和专业人员中指定。清算组可以聘任必要的工作人员。

The members of the liquidation team shall be designated by the people's court from among the superior departments in charge, government finance departments, and other relevant departments and professional personnel. The liquidation team may hire necessary work personnel.

 

清算组对人民法院负责并且报告工作。

The liquidation team is responsible to, and shall make report on its work to, the people's court.

 

第二十五条 任何单位和个人不得非法处理破产企业的财产、帐册、文书、资料和印章等。

Article 25. No unit or individual may illegally dispose of the property, account books, documents, materials, seals, etc. of a bankrupt enterprise.

 

破产企业的债务人和财产持有人，只能向清算组清偿债务或者交付财产。

The debtors of a bankrupt enterprise and persons holding the property of a bankrupt enterprise can repay debts or deliver property only to the liquidation team.

 

第二十六条 对破产企业未履行的合同，清算组可以决定解除或者继续履行。

Article 26. The liquidation team may decide to terminate or to continue to perform the contracts that have not yet been performed by the bankrupt enterprise.

 

清算组决定解除合同，另一方当事人因合同解除受到损害的，其损害赔偿额作为破产债权。

If the liquidation team decides to terminate a contract, and the other party to the contract suffers harm as the result of the termination of the contract, the amount of compensation for the harm constitutes a bankruptcy claim.

 

第二十七条 破产企业的法定代表人在向清算组办理移交手续前，负责保管本企业的财产、帐册、文书、资料和印章等。

Article 27. Before the legal representative of the bankrupt enterprise has handled the procedures for transfer to the liquidation team, he shall be responsible for the keeping of the property, account books, documents, materials, seals, etc. of such enterprise.

 

破产企业的法定代表人在破产程序终结以前，根据人民法院或者清算组的要求进行工作，不得擅离职守。

Before the conclusion of the bankruptcy proceedings, the legal representative of the bankrupt enterprise shall carry out work according to the requirements of the people's court or the liquidation team, and may not leave his position without authorization.

 

第二十八条 破产财产由下列财产构成：

Article 28. Bankruptcy property comprises the following property:

 

（一）宣告破产时破产企业经营管理的全部财产；

(1) all property that the bankrupt enterprise operated and managed at the time bankruptcy was declared;

 

（二）破产企业在破产宣告后至破产程序终结前所取得的财产；

(2) property obtained by the bankrupt enterprise during the period from the declaration of bankruptcy until the conclusion of the bankruptcy proceedings; and

 

（三）应当由破产企业行使的其他财产权利。

(3) other property rights that the bankrupt enterprise should exercise.

 

已作为担保物的财产不属于破产财产；担保物的价款超过其所担保的债务数额的，超过部分属于破产财产。

Property that already constitutes security collateral is not bankruptcy property; the portion of the value of the security collateral exceeding the amount of the debt that it secures is bankruptcy property.

 

第二十九条 破产企业内属于他人的财产，由该财产的权利人通过清算组取回。

Article 29. Property in the bankrupt enterprise that belongs to other persons shall be retrieved by the persons with the right to such property through the means of the liquidation team.

 

第三十条 破产宣告前成立的无财产担保的债权和放弃优先受偿权利的有财产担保的债权为破产债权。

Article 30. Claims not secured with property and claims secured with property for which the priority right to receive repayment has been abandoned, which are established before bankruptcy is declared, are bankruptcy claims.

 

债权人参加破产程序的费用不得作为破产债权。

The expenses of creditors for participating in the bankruptcy proceedings may not constitute bankruptcy claims.

 

第三十一条 破产宣告时未到期的债权，视为已到期债权，但是应当减去未到期的利息。

Article 31. Claims that are not due when bankruptcy is declared shall be deemed to be claims that have already become due, provided, however, that the interest that is not yet due shall be deducted.

 

第三十二条 破产宣告前成立的有财产担保的债权，债权人享有就该担保物优先受偿的权利。

Article 32. With respect to claims secured with property that are established before bankruptcy is declared, the creditors enjoy the right to receive repayment with priority with respect to such security.

 

有财产担保的债权，其数额超过担保物的价款的，未受清偿的部分，作为破产债权，依照破产程序受偿。

With respect to claims that are secured with property whose amount exceeds the value of the security collateral, the part that is not repaid constitutes a bankruptcy claim, and will be repaid in accordance with the bankruptcy proceedings.

 

第三十三条 债权人对破产企业负有债务的，可以在破产清算前抵销。

Article 33. Creditors which owe debts to the bankrupt enterprise may offset them before the bankruptcy liquidation.

 

第三十四条 下列破产费用，应当从破产财产中优先拨付：

Article 34. Priority shall be given to saving the following bankruptcy expenses from the bankruptcy property:

 

（一）破产财产的管理、变卖和分配所需要的费用，包括聘任工作人员的费用；

(1) the expenses needed for the management, sale and distribution of the bankruptcy property, including the expenses of hiring work personnel;

 

（二）破产案件的诉讼费用；

(2) the litigation expenses of the bankruptcy case; and

 

（三）为债权人的共同利益而在破产程序中支付的其他费用。

(3) other expenses paid in the course of bankruptcy proceedings for the common interest of the creditors.

 

破产财产不足以支付破产费用的，人民法院应当宣告破产程序终结。

With respect to enterprises whose bankruptcy property is insufficient to cover bankruptcy expenses, the people's court should declare termination of bankruptcy proceedings.

 

第三十五条 人民法院受理破产案件前六个月至破产宣告之日的期间内，破产企业的下列行为无效：

Article 35. During the period from six months before the people's court accepts the bankruptcy cases until the date that bankruptcy is declared, the following actions of a bankrupt enterprise are null and void:

 

（一）隐匿、私分或者无偿转让财产；

(1) concealment, secret distributions or transfers of property without compensation;

 

（二）非正常压价出售财产；

(2) sale of property at abnormally depressed prices;

 

（三）对原来没有财产担保的债务提供财产担保；

(3) securing with property of claims that originally were not secured by property;

 

（四）对未到期的债务提前清偿；

(4) early repayment of claims that are not yet due; and

 

（五）放弃自已的债权。

(5) abandonment of the enterprise's own claims.

 

破产企业有前款所列行为的，清算组有权向人民法院申请追回财产。追回的财产，并入破产财产。

With respect to bankrupt enterprises which have committed acts listed in the previous paragraphs, the liquidation team has the right to apply to the people's court to recover the property, which shall be added to the bankruptcy property.

 

第三十六条 破产财产中的成套设备，应当整体出售；不能整体出售的，可以分散出售。

Article 36. Complete sets of equipment in the bankruptcy property shall be sold as a whole, and that which cannot be sold as a whole may be sold in parts.

 

第三十七条 清算组提出破产财产分配方案，经债权人会议讨论通过，报请人民法院裁定后执行。

Article 37. The distribution plan for the bankruptcy property shall be proposed by the liquidation team, adopted by the creditors meeting and submitted to the people's court for judgment before implementation.

 

破产财产优先拨付破产费用后，按照下列顺序清偿：

After the prior deduction of bankruptcy expenses from the bankruptcy property, repayment shall be made in the following order:

 

（一）破产企业所欠职工工资和劳动保险费用；

(1) wages of staff and workers and labour insurance expenses that are owed by the bankrupt enterprise;

 

（二）破产企业所欠税款；

(2) taxes that are owed by the bankrupt enterprise; and

 

（三）破产债权。

(3) bankruptcy claims.

 

破产财产不足清偿同一顺序的清偿要求的，按照比例分配。

Where the bankruptcy property is insufficient to repay all the repayment needs within a single order of priority, it shall be distributed on a pro-rata basis.

 

第三十八条 破产财产分配完毕，由清算组提请人民法院终结破产程序。破产程序终结后，未得到清偿的债权不再清偿。

Article 38. Upon the completion of the distribution of the bankruptcy property, the liquidation team shall apply to the people's court for the conclusion of the bankruptcy proceedings. After the termination of bankruptcy proceedings, claims that have not been repaid shall no longer be repaid.

 

第三十九条 破产程序终结后，由清算组向破产企业原登记机关办理注销登记。

Article 39. After the conclusion of the bankruptcy proceedings,the liquidation team shall handle the procedures for the cancellation of registration at the original registration authorities of the bankrupt enterprise.

 

第四十条 破产企业有本法第三十五条所列行为之一，自破产程序终结之日起一年内被查出的，由人民法院追回财产，依照本法第三十七条的规定清偿。

Article 40. With respect to bankrupt enterprises that are discovered within one year after the date of the conclusion of the bankruptcy proceedings to have committed any of the acts listed in Article 35 of this Law, the people's court shall recover the property and order repayment in accordance with Article 37 of this Law.

 

第四十一条 破产企业有本法第三十五条所列行为之一的，对破产企业的法定代表人和直接责任人员给予行政处分；破产企业的法定代表人和直接责任人员的行为构成犯罪的，依法追究刑事责任。

Article 41. With respect to bankrupt enterprises that have committed any of the acts listed in Article 35 of this Law, the legal representative and the directly responsible personnel of the bankrupt enterprise shall be subject to administrative sanctions; where the acts of the legal representative and the directly responsible personnel of the bankrupt enterprise constitute crimes, criminal responsibility shall be investigated in accordance with the law.

 

第四十二条 企业被宣告破产后，由政府监察部门和审计部门负责查明企业破产的责任。

Article 42. After an enterprise is declared bankrupt, the government supervisory departments and audit departments are responsible for pinpointing the responsibility for the bankruptcy of the enterprise.

 

破产企业的法定代表人对企业破产负有主要责任的，给予行政处分。

Where the legal representative of the bankrupt enterprise bears the major responsibility for the bankruptcy of the enterprise, administrative sanctions shall be applied.

 

破产企业的上级主管部门对企业破产负有主要责任的，对该上级主管部门的领导人，给予行政处分。

Where the superior departments in charge of the bankrupt enterprise bear the major responsibility for the bankruptcy of the enterprise, administrative sanctions shall be applied to the leaders of such superior departments in charge.

 

破产企业的法定代表人和破产企业的上级主管部门的领导人，因玩忽职守造成企业破产，致使国家财产遭受重大损失的，依照《中华人民共和国刑法》第一百八十七条的规定追究刑事责任。

With respect to the legal representative of the bankrupt enterprise and the leaders of superior departments in charge of bankrupt enterprise who, due to neglect of duty, cause the bankruptcy of the enterprise that result in the major loss of state property, criminal responsibility shall be investigated in accordance with Article 187 of the Criminal Law of the People's Republic of China.

 

第六章 附 则

CHAPTER VI BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

 

第四十三条 本法自全民所有制工业企业法实施满三个月之日起试行，试行的具体部署和步骤由国务院规定。

Article 43. This Law is to be implemented on a trial basis three full months after the Law on Industrial Enterprises with Ownership by the Whole People comes into effect, and the specific plans and steps for the trial implementation shall be stipulated by the State Council.