(a) In relation to each type of insolvency procedure available in the legal system of this economy, what are the administrative organs/entities involved in the implementation and management of that procedure? (For example a trustee, liquidator, receiver, government official.)

Bankruptcy: Bankruptcy administrator

Corporate Reorganisation: Reorganisation administrator

Special Liquidation: Special Liquidator (but the special liquidator is the same as a normal liquidator usually and it will not be an administrator here.)

(b) What qualifications must each type of administrator of insolvency procedures possess? Is there a system of regulation of insolvency administrators in this economy?

Legally no qualification is required but in practice attorneys become bankruptcy administrators. Under the corporate reorganisation two administrators are appointed and one of the reorganisation administrators is an attorney and another is a business person who is usually an executive of the possible new sponsor of the debtor company.

(c) Are the creditors of a corporate debtor permitted to participate in the administration of the relevant insolvency procedure, and if so, how? (For example are the creditors permitted to assist the administrator, or supervise or dictate the conduct of the administration?)

No. The bankruptcy law provides a possibility of establishment of creditors' committee but in practice no such committee is not used. The court will supervise the procedure from various points of view including protection of interests of creditors. This system is almost applicable to the corporate reorganisation. In other insolvency proceedings various investigators are appointed and such investigators will act as supervisors to protect interests of creditors.

(a) In relation to each type of insolvency procedure available in the legal system of this economy, what are the powers given to each type of administrator by statute, at general law or pursuant to the terms of the appointment? (for example power to carry on the business of the organization, to pay creditors, to compromise claims of or against the debtor, to issue or defend legal proceedings, to obtain credit, to sell property, to execute documents on behalf of the debtor.)

All powers vest in the administrator in both bankruptcy and reorganization procedures but the court's approval is necessary for certain important actions.

(b) To what extent and in what circumstances may each type of insolvency administrator seek assistance, advice or direction in the conduct of the administration, and from what sources? (for example the Court, his appointor, the creditors of the debtor, a solicitor, accountant or other relevant person.)

The court's approval is necessary for certain important actions such as to compromise claims, to issue legal proceedings, to obtain credit, to sell property and etc (Bankruptcy Law Article 197, Corporate Reorganisation Law Articles 54 and 54-2) .

(a) In relation to each type of insolvency procedure available in the legal system of this economy, what are the duties imposed upon each type of administrator by statute and at general law? (for example a duty to take possession of assets of the debtor, to realise those assets, to discharge the debt owed to his appointor, to call for proofs of debts owed to creditors, to adjudicate upon claims of creditors, to apply available assets in discharge of those claims, to report on the conduct of the debtor by the proprietors.)

The bankruptcy administrator has duties to do things necessary to achieve the object of bankruptcy, i.e. to preserve and recover the assets of the debtor company and distribute them among creditors fairly and orderly, which include taking possession of assets, realising them, calling for proofs of debts, confirmation of debts, distribution of realised assets to creditors and continuous report to the court.

Under the corporate reorganisation procedure the administrators do things as necessary to rehabilitate the debtor company. First of all, the reorganisation administrators have to continue the business of the debtor company. Secondly, the administrators investigate and confirm the financial conditions and claims of creditors. Thirdly the administrators prepare a reorganisation plan based on such investigation and assessment and obtain approvals from each class of creditors and the court. The administrators are also involved in performance of the reorganisation plan, including payment of claims in accordance with the plan and change of the reorganisation plan until termination of the procedure.

(a) What remedies and/or sanctions are available in the legal system of this economy in respect of breaches of duty or transgressions committed by each type of insolvency administrator?

The administrator is responsible for damages arising from his negligence in performance of duties (Bankruptcy Law Article 164 and Corporate Reorganisation Law Article 98-4).

(b) Have there been actual instances of breach of duty or transgressions committed by insolvency administrators?

Yes.

(c) If so, give the details of any major cases and a summary of the action taken and the results.

For example, the administrator paid dividends to creditors without paying taxes which has priority over such creditors' rights and had to pay such taxes by himself. There are no major cases.