[Direct answer]In the Beijing area, bankruptcy administrators are appointed by the people's courts. According to Articles 22 and 24 of the Enterprise Bankruptcy Law of the People's Republic of China and the "Regulations of the Supreme People's Court on the Appointment of Administrators for the Trial of Enterprise Bankruptcy Cases", after the people's courts accept bankruptcy applications, they generally appoint administrators at random from the administrator roster; for major, difficult, or highly specialized cases, they may appoint administrators through competitive selection or by accepting recommendations. Administrators may include liquidation groups, law firms, accounting firms, and bankruptcy liquidation agencies established in accordance with the law, as well as individuals with professional knowledge and qualifications. If the creditors' meeting believes that the administrator cannot perform his duties lawfully and impartially, or has other incompetent circumstances, it may apply to the people's court for a replacement; if interested parties believe that the administrator has a conflict of interest with the case, they may request his recusal.
I. Problem Background and Typical Scenarios
After a company enters bankruptcy proceedings, the administrator is responsible for taking over the property, investigating the claims, managing and disposing of the property, and proposing a distribution plan, etc. Their professional competence and neutrality directly affect the interests of the creditors. Creditors often ask: How is the administrator selected? Can they appoint an institution they trust? What should they do if they are not satisfied with the administrator? Understanding the selection rules can help creditors effectively exercise their rights.
II. Key points of contention
First, the selection and appointment process of managers. Second, the qualifications for the position and the roster system. Third, conflicts of interest and avoidance. Fourth, the conditions and procedures for replacing managers. Fifth, the responsibilities of managers and accountability.
III. Professional analysis by Henglue Lawyers
Henglue Lawyers explained this from two aspects: system and practice. Firstly, regarding the selection method: The court generally appoints administrators from the administrator roster through random selection to avoid human intervention. For major, difficult, or highly specialized cases, a competitive selection process is adopted to appoint more suitable institutions through open competition. Liquidation team members can also serve as administrators. Secondly, regarding the roster management: The Higher People's Court compiles and dynamically manages the administrator roster. Intermediary institutions and individuals must meet qualification and practice requirements to be selected. Institutions not included in the roster are generally not allowed to serve as administrators. Thirdly, regarding conflict of interest: If there is a potential conflict of interest with debtors or creditors that may affect impartial performance of duties, they should voluntarily report and recuse themselves. The court will also review whether there are conflicts when appointing administrators, such as whether the institution has provided specific services to the debtor that may constitute an obstacle. Fourthly, regarding replacement and objections: If the creditors' meeting believes that the administrator cannot perform his duties impartially or competently according to law, or for other legitimate reasons, it may apply to the court for replacement. If creditors, debtors, or other interested parties have objections to the appointment, they may file them with the court according to law. Fifthly, regarding duties and responsibilities: The administrator shall perform his duties diligently, faithfully execute his duties, report his work to the court, and accept the supervision of the creditors' meeting and the creditors' committee. Those who cause losses due to intentional or gross negligence shall bear compensation liability according to law, and those who commit crimes shall be investigated for criminal responsibility. The courts in Beijing have relatively standardized supervision of administrators' performance of duties and attach great importance to the supervisory role of the creditors' meeting. 恒略律师从制度与实务两方面进行了说明。一是选任方式:法院原则上从管理人名册中通过摇号等随机方式指定,避免人为干预;对于重大、疑难或专业性强的案件,采取竞争方式,通过公开竞争选任更合适的机构;清算组成员也可以担任管理人。二是名册管理:高级人民法院编制管理人名册并实行动态管理,中介机构和个人需符合资质和执业要求方可入选;未编入名册的机构一般不得担任管理人。三是利益冲突:与债务人、债权人存在利害关系可能影响公正履职的,应当主动报告并回避;法院指定时也会审查是否存在冲突,如机构曾为债务人提供过特定服务可能构成障碍。四是更换与异议:债权人会议认为管理人不能依法公正履职、不能胜任职务或有其他正当理由的,可以申请法院更换;债权人、债务人等利害关系人对指定有异议的,可以依法向法院提出。五是职责与责任:管理人应当勤勉尽责,忠实执行职务,向法院报告工作并接受债权人会议和债权人委员会监督;因故意或重大过失造成损失的,应当依法承担赔偿责任,构成犯罪的,追究刑事责任。北京地区法院对管理人履职监督较为规范,重视债权人会议的监督作用。
IV. Practical suggestions and legal basis
Action suggestions: First, understand the local list of administrators and the rules for their selection; Second, if creditors find that the administrator has a conflict of interest, they should promptly propose to recuse or raise objections; Third, exercise supervision rights through creditors' meetings and, if necessary, apply to replace the administrator; Fourth, pay attention to whether the administrator's implementation of the property management and distribution plan is legal. For matters involving enterprise bankruptcy and commercial disputes, you may refer to the relevant provisions.Business and contract disputes in enterprisesFor matters involving the realization of creditor's rights, you may refer to the following provisions:Creditor's rights and debts, and enforcementLegal basis: Articles 22, 24, and 28 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), and relevant provisions of the Supreme People's Court's Regulations on the Appointment of Managers for the Trial of Enterprise Bankruptcy Cases. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglue Law Firm's Advice
Firstly, the administrator is appointed by the court and, in principle, selected by random draw. Secondly, major and difficult cases can be selected by competitive means. Thirdly, if there is a conflict of interest, the administrator should recuse himself, and the creditors can apply for a replacement. Fourthly, the creditors' meeting has a supervisory role over the administrator. For matters involving bankruptcy and commercial affairs, they can be resolved through legal means.Business and contract disputes in enterprisesThe service obtains an overall solution, which involves the integration of creditor's rights realization and enforcementCreditor's rights and debts, and enforcementFor plates involving intellectual property or equity, you can refer to the following for referenceIntellectual property protection and corporate legal counselFor any questions regarding difficult situations, you can seek advice from the columnSpecial servicesTeam.
VI. Frequently Asked Questions
Q1: Who selects the bankruptcy trustee?
It is appointed by the people's court. After the court accepts the bankruptcy application, it generally appoints a manager at random from the manager's roster; for major, difficult or highly specialized cases, the manager may be selected through a competitive process, or appointed through other legal methods such as accepting recommendations.
Q2: Who can serve as a bankruptcy trustee?
This includes the liquidation team, as well as social intermediary organizations such as law firms, accounting firms, and bankruptcy liquidation firms established in accordance with the law, and individuals with professional knowledge and qualifications to practice. They are generally selected from the list of managers compiled by the court.
Q3: Can creditors appoint an institution they trust?
It cannot be directly appointed. The right of selection lies with the court, and creditors cannot determine the administrator on their own, but they can exercise supervision through the creditors' meeting. If the administrator fails to perform his duties impartially or has a conflict of interest, creditors may apply for his replacement or recusal.
Q4: What should I do if the manager fails to perform his duties properly?
It can be applied for replacement. If the creditors' meeting believes that the administrator cannot perform his duties impartially according to law or has other incompetent circumstances, it may apply to the court for replacement; if the administrator causes losses due to intentional or gross negligence, he shall also bear compensation liability according to law.
Q5: What should be done if the manager is related to the debtor?
They should avoid doing so. If there is a potential conflict of interest that may affect the fair performance of their duties, the administrator should actively report it and recuse himself/herself, and the creditors may also raise objections. When appointing the administrator, the court will also review whether there are any conflict situations to ensure the fairness of the process.
The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Corporate commercial legal services·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.