Author(s)

Yige Chen

Corresponding Author

Yige Chen

Abstract

When a company requires liquidation, the Chinese law has divided the individuals responsible into liquidation obligor, who are responsible to start the procedure and liquidators as those who execute liquidation. However, this mechanism may not only lower the efficiency of liquidation [1], but also provide an opportunity for certain shareholders to transfer risks as well as an escape from their responsibilities. The liquidation obligor system and the liquidator system are different steps of the same procedure. Moreover, the two systems have a share in common in their stipulations on the identity and the responsibility of the related individual, it is possible that the combination of the two systems can solve some of the problems existed.

Keywords

Liquidation obligor system; liquidator system; comparison; solution