Dissolution
The managers of the company will keep their managerial titles. However, upon the decision on the dissolution of the company, the company is subject to several restrictions by laws in signing new contracts, mortgage assets, sale of assets, etc.
Bankruptcy
The insolvent entity shall keep running the business operates under the supervision of the judge and asset management officers and/or asset management enterprises after the decision on the initiation of the bankruptcy process is made.
If the insolvent entity is perceived as incapable of running the business operation or deemed to violate the regulations, the assigned judge can decide to replace the legal representative of the insolvent entity upon the request of the creditors' meeting or the asset management officers and/or asset management enterprises.
Dissolution
From the date of issuance of the decision on dissolution, the company and its manager are prohibited by law from:
- Hiding illegally liquidating assets
- Abandoning or reducing the right to claim debts
- Converting unsecured debts into debts secured on the enterprise's assets
- Signing new contracts, except for the purpose of dissolution
- Granting security over the assets
- Terminating effective contracts
- Raising capital in any shape or form
Bankruptcy
- Transactions conducted by an insolvent enterprise may be deemed invalid where such transactions (i) occur within six months prior to the date the People's Court issues a decision to commence bankruptcy procedures; and (ii) either (a) comprise the donation, settlement, payment or transfer of assets or debts not due or (b) unduly remove the assets of the enterprise or cooperative.
- Transactions of an insolvent enterprise conducted with related persons within 18 months prior to the date when the court issued a decision to commence the bankruptcy procedures may be deemed invalid.
- As of the date of commencement of bankruptcy procedures, the insolvent enterprise shall be prohibited from undertaking the following activities:
- Concealing or disposing of assets
- Paying unsecured debts, except for the unsecured debts arising subsequent to the commencement of bankruptcy procedures and paying wages to employees
- Abandoning or reducing rights to claim debts
- Converting unsecured debts into debts secured by the assets of the enterprise
Any transactions as set out above shall be invalid and declared so by the court.
Dissolution
No.
Bankruptcy
There is no specific provision allowing the debtor to obtain credit after commencement of bankruptcy proceedings (post-commencement credit) to finance its ongoing needs during the proceedings.
Dissolution
No.
Bankruptcy
Yes, during the company's business recovery, the creditors can buy shares of the insolvent company to become shareholders.
Dissolution
It depends on the jurisdiction where the recognition is sought.
Bankruptcy
It depends on the jurisdiction where the recognition is sought.
Dissolution
Generally no, except for entering into a contract for the purpose of dissolution.
Bankruptcy
Yes, however, the insolvent entity is under the supervision of the judge and asset management officers and/or asset management enterprises.