The Conditions of the Reorganization Procedure Beginning and the Judicial Review of It：a Query about the “Merger Reorganization”

Because the reorganization procedure has an enormous effect on the rights of creditors and with high costs, its beginning should meet the requirements of the second provision in the "Enterprise Bankruptcy Law of the People's Republic of China". In addition, the courts ought to ascertain whether the enterprise has the opportunity for regeneration. So, from the perspective of comparative law practice, the reorganization procedure is mainly applied to large-scale enterprises. Moreover, most of the "Merger Reorganization and the Entirely Reorganization" in China's present judicial actuality is breach of the procedural and substantive law. If the enterprise meets the requirements of the "Disregard of Corporate Personality", it should be in accordance with the joint and several liabilities rather than create a new procedure for "the law out of law". Even though the enterprise which is engaged in related transactions meets the requirements of reorganization, it should accept and hear the case and declare obligatory rights and implement procedure respectively rather than combine it.