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Bankruptcy law draft excludes partnership
(Xinhua)
Updated: 2004-10-25 09:43

The draft of bankruptcy law, submitted on Sunday to China's top legislature for second deliberation, limits the law's scope, as partnership and proprietary businesses will not be effected.

According to the original bankruptcy law draft submitted to the11th meeting of National People's Congress (NPC) Standing Committee in August, state-owned limited corporations, collectively owned limited corporations and private limited corporations, partnership businesses and businesses owned by single persons were covered by the law.

During the first deliberation, China's lawmakers held that partners and single owners of businesses could easily escape debtsby faking bankruptcy or concealing property during the bankruptcy process, as the country's individual credibility system was imperfect.

In this sense, the revised version of bankruptcy law draft excludes partnership and proprietary businesses. Enditem

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