How to appoint a bankruptcy administrator

The new law introduces the bankruptcy administrator system and authorizes the Supreme People's Court to formulate the method of appointing the administrator. 1. The relationship between the administrator appointed by the people's court and the creditors' meeting rights. The new law stipulates that the bankruptcy administrator shall be appointed by the people's court. However, if the creditors' meeting thinks that the administrator can't perform his duties fairly according to law or has other incompetent circumstances, he may apply to the people's court for replacement.

The problem is that when the creditors' meeting applies to the people's court for replacing the administrator, the people's court will naturally replace it, or if the application is found to be unfounded after examination, the application can be rejected. One view is that one of the purposes of the bankruptcy administrator is to maximize the interests of creditors. If the creditors' meeting thinks that he can't perform his duties fairly according to law or has other incompetence, it means that the creditors have lost trust in him. In this case, the people's court should replace the administrator, and the replaced administrator is also appointed by the people's court, which is not inconsistent with the provisions of the new law.

Another point of view is that the new law stipulates that the purpose of appointing the administrator by the people's court is to exclude the creditors' meeting from exerting too much influence on the appointment of the administrator. Although the creditor is given the right to apply for replacing the administrator, it does not affect the final judgment of the court, otherwise it will not be conducive to the development of the administrator's work. If, after examination, the court considers that the reasons for the creditors' meeting to apply for replacing the administrator are untenable, it may reject the creditors' meeting's application.

2. Several forms of manager relationship. As can be seen from the provisions of the new law, there are three forms of managers: one is the liquidation group; Second, intermediaries; Third, intermediaries have relevant professional knowledge and obtained professional qualifications. The employment of employees of intermediary institutions as bankruptcy administrators is mainly applicable to bankruptcy cases with a small amount of debtors and a simple relationship between creditor's rights and debts, and generally no disputes will arise.

The dispute exists when the liquidation group and the intermediary agency are managers. One view is that the appointment of the liquidation group as the bankruptcy administrator is mainly applicable to the bankruptcy of state-owned enterprises. Because the liquidation group comes from the provisions of the old law and is aimed at the bankruptcy of state-owned enterprises, the liquidation group is mainly composed of people from government departments, which is also the responsibility that the government should bear for state-owned enterprises, not state-owned enterprises.

Therefore, when a non-state-owned enterprise goes bankrupt, it is not appropriate to appoint a liquidation group as the manager. Another view is that one of the reasons for the introduction of the bankruptcy administrator system in the new law lies in the strong local color of the liquidation group in the old law. After the new law comes into effect, designated intermediaries should be the first choice. In view of the fact that it may be inconvenient to appoint an intermediary agency as the administrator or some enterprises go bankrupt at the beginning of the new law, the court may appoint a liquidation group as the administrator at this time, but it should not distinguish whether it is a state-owned enterprise or not, because the equal status of market participants determines that this system treats the objects adjusted by the bankruptcy law equally.

3. List of managers. First, the list of administrators shall be formulated by the Supreme People's Court or by the Higher People's Court according to local conditions; Second, whether all law firms and accounting firms with industry management should be included in the roster of managers can be determined by applying for approval; Third, how to determine the basic conditions for social intermediary institutions such as bankruptcy liquidation firms to be institutions or only to register for industry and commerce; Fourthly, whether the designated administrator should be free from geographical restrictions, and if the administrator in different places is designated, how to determine the relationship between the administrator in different places and the roster of local administrators.

The people's court shall be open, fair and just when appointing administrators. In practice, many courts choose administrators randomly by drawing lots and shaking numbers to prevent human manipulation, making the appointment process of the liquidation group open and transparent and achieving good results. After the new law comes into effect, this method should still be adopted, and the premise of this method is to have a relatively fixed scope, and the establishment of the roster of managers is particularly important.