Enterprise Bankruptcy Law of China Ⅲ

Chapter III

Administrator

Article 22 The administrator shall be designated by the people's court.

Where the creditors' meeting believes that the administrator cannot perform his duties according to law or impartially or is incompetent to fulfill his duties, the meeting may apply with the people's court for replacement.

The measures for designating administrators and determining their remunerations shall be formulated by the Supreme People's Court.

Article 23 An administrator shall perform his duties according to the provisions of this Law, report on his work to the people's court and be subject to supervision by the creditors' meeting and the creditors' committee.

The administrator shall attend the creditors' meetings as a non-voting participant, reporting on the performance of his duties and answering inquires.

Article 24 A liquidation team composed of persons of the departments or authorities concerned or a law firm, a certified public accountant firm, a bankruptcy liquidation firm or any other public intermediary agency that is established according to law may serve as an administrator.

The people's court may, in light of the actual conditions of a debtor and after consulting with the public intermediary agency concerned, designate the person who has the necessary professional knowledge and has obtained the qualifications for the practice to serve as an administrator.

A person shall not serve as an administrator, if:

（1） he has been subjected to criminal punishment for intentional offense;

（2） his qualification certificate for the relevant practice has been revoked;

（3） he has an interest in the case; or

（4） the people's court deems it improper to have him serve as an administrator.

Where the administrator is served by an individual person, he shall purchase the responsibility insurance for the practice.

Article 25 An administrator shall perform the following duties:

（1） taking over the property, seals, account books, documents and other data of the debtor;

（2） investigating into the financial position of the debtor and preparing a report on such position;

（3） deciding on matters of internal management of the debtor;

（4） deciding on the day-to-day expenses and other necessary expenditures of the debtor;

（5） deciding, before the first creditors' meeting is held, to continue or suspend the debtor's business;@@page@@

（6） managing and disposing of the debtor's property;

（7） participating in legal actions, arbitrations or any other legal procedure on behalf of the debtor;

（8） proposing to hold creditors' meetings; and

（9） performing other duties that the people's court deems that he should.

Where other provisions governing the duties of an administrator are stipulated in this Law, those provisions shall be applicable.

Article 26 If an administrator decides to continue or suspend the business operation of a debtor or if he intends to take any of the actions as specified by the provisions of Article 69 of this Law before the first creditors' meeting is held, the matter shall be subject to approval by the people's court.

Article 27 An administrator shall be hardworking in doing his duties, and shall perform his duties faithfully.

Article 28 An administrator may, upon approval by the people's court, employ the necessary workers.

The remuneration of an administrator shall be determined by the people's court. In case the creditors' meeting has objections to such remuneration, it shall have the right to raise them to the people's court.

Article 29 An administrator shall not resign his post without justifiable reasons. Resignation of an administrator shall be subject to approval by the people's court.