Sui Zhong Fa [2020] No. 98

　　Notice of Guangzhou Intermediate People's Court on Issuing the Interim Measures for the Administration and Use of Guarantee Funds in Enterprise Bankruptcy Cases

To all primary courts and all departments of this Court,

　　To standardize the management and use of the guarantee funds in enterprise bankruptcy cases, fairly and reasonably determine the remuneration of affiliated person, improve the quality and efficiency of handling bankruptcy cases, and optimize the construction of the business environment, these Interim Measures for the Administration and Use of Guarantee Funds in Enterprise Bankruptcy Cases are hereby printed and distributed to you, please implement it carefully.

　　Guangzhou Intermediate People's Court

　　June 18, 2020

　　Interim Measures for the Administration and Use of Guarantee Funds in Enterprise Bankruptcy Cases

　　To standardize the management and use of the guarantee funds in enterprise bankruptcy cases, fairly and reasonably determine the remuneration of administrators, improve the quality and efficiency of handling bankruptcy cases and optimize the construction of the business environment, in accordance with theEnterprise Bankruptcy Law of the People's Republic of China and the Provisions of the Supreme People's Court on the Determination of the Remuneration of Administrators in the Trial of Enterprise BankruptcyCases, these Measures are hereby formulated in combination with the bankruptcy trial practice in the courts of our city.

　　1. The guarantee funds in enterprise bankruptcy cases as mentioned in these Measures shall include the budget funds for handling bankruptcy cases disbursed from the case-handling fee of this Court, the case-handling fee prepaid by interested parties in enterprise bankruptcy cases, and the bankruptcy (liquidation) public welfare funds established by the Guangzhou Association of Bankruptcy Administrators.

　　2. The management and use of guarantee funds in enterprise bankruptcy cases shall follow the principles of fairness and transparency, strict management and standardized use, and accept supervision and inspection by financial departments and audit departments according to law.

　　3. The case-handling fee prepaid by interested parties in an enterprise bankruptcy case shall be used to pay the bankruptcy expenses and the remuneration of the administrator arising from the handling of the case.

　　4. The use of the bankruptcy (liquidation) public welfare funds of the Guangzhou Association of Bankruptcy Administrators shall be applied for and handled by the bankruptcy case administrator in accordance with relevant regulations of the Guangzhou Association of Bankruptcy Administrators.

　　5. The administrator's remuneration that could not be disbursed from the fee prepaid by the interested parties and the bankruptcy (liquidation) public welfare funds of Guangzhou Association of Bankruptcy Administrators may be paid from the case-handling fee of this Court as the expenses required for bankruptcy trial.

　　6. For a case that the property of a bankruptcy enterprise is not enough to pay off the bankruptcy expenses, the administrator's remuneration is generally within the range of RMB 30,000 to RMB 80,000.

　　7. When determining the remuneration scheme of the administrator, the people's court shall consider comprehensively the circumstances stipulated in Article 9 of the Provisions of the Supreme People's Court on Determination of the Remuneration of Administrators in the Trial of Enterprise Bankruptcy Cases and the actual workload of the administrator and his case handling efficiency and effect.

　　8. Where there are scattered property clues, difficulties in taking over, more derivative lawsuit and numerous creditors in a bankruptcy case, or the administrator properly handles the placement of workers and staff, the disposal of stock houses and other major public opinion and social stability issues, or the administrator could efficiently handle a case in combination with the difficulty of the case, the administrator's remuneration may be increased accordingly.

　　9. Where the administrator fails to fully fulfill its reporting obligations in accordance with the Measures of Guangzhou Intermediate People's Court on Supervision of the Work of Administrators in Enterprise Bankruptcy Cases, submits repeatedly revised reports to meet requirements, takes too long time to handle a case in combination with the difficulty of the case, causes damage to the interests of creditors or causes public opinion and social stability problems due to its performance of duties, the administrator's remuneration shall be reduced accordingly.

　　10. For a case that the property of a bankruptcy enterprise is not sufficient to pay off the bankruptcy expenses, in principle, the administrator's remuneration should be finally paid at one time. When applying for conclusion of bankruptcy proceedings, the administrator shall submit an application for remuneration payment to this Court.

　　The application shall state in detail the basic situation of the bankrupt enterprise and its property status, and the performance of the administrator afterit has accepted the appointment, especially the circumstances stipulated in Article 8 of these Measures.

　　11. Where the administrator's remuneration is to be paid from the case-handling fee of this Court, the amount of the administrator's remuneration shall be examined and determined by the collegial panel or the single judge who hears the case, and then reported to the tribunal leader for approval, and finally reported to the leader who is put in charge of bankruptcy trial for approval.

　　Where the amount is less than RMB 50,000 (including RMB 50,000) after the examination and determination of the administrator's remuneration, it shall be submitted to the director of Judicial Administration and Equipment Management Division for approval; if the amount is more than RMB 50,000 less than RMB 80,000 (including RMB 80,000), it shall be submitted to the leader who is put in charge of financial work for approval.

　　12. The administrator shall apply for and settle the bankruptcy expenses incurred during the performance of its duties in accordance with the relevant regulations.

　　13. The administrator shall properly sort out, keep and hand over the bills related to bankruptcy expenses.

　　14. The beneficiary account for which the administrator receives remuneration must be the account of its employer, and the relevant invoice shall be issued by the employer.

　　15. Where the bankrupt enterprise has recovered property or found other properties that should be allocated within two years after the conclusion of the bankruptcy proceedings for a case that uses the guarantee funds in an enterprise bankruptcy case, such properties shall be first used to return the paid bankruptcy expenses and the administrator's remuneration.

　　16. Where the administrator provides false information to obtain the guarantee funds for an enterprise bankruptcy case, the people's court may, in accordance with the Civil Procedure Law of the People's Republic of China and the Enterprise Bankruptcy Law of the People's Republic of China, give an admonition, impose a fine and remove it from the roster of administrators. In the case of a criminal suspect, the administrator shall be transferred to a judicial authority for investigation.

　　17. The compulsory liquidation cases handled by this Court shall be governed with reference to these Measures.

　　18. These Measures shall take effect from the date of issuance, and the power of interpretation shall be vested in the Guangzhou Intermediate People's Court.