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Jing Gao Fa Fa [2020] No. 137

Article 1 To optimize the business environment, improve the supporting mechanism for bankruptcy trials and ensure the smooth running of bankruptcy proceedings, the Measures are hereby formulated in accordance with the Enterprise Bankruptcy Law of the People's Republic of China, the Minutes of National Court Bankruptcy Trial Meeting and the Several Provisions of the Supreme People's Court of the PRC on Providing Judicial Safeguard for Improvement of Business Environment, and the actual conditions for the adjudication on bankruptcy by courts in Beijing.

Article 2 The aid funds for bankruptcy expenses (hereinafter referred to as the "Aid Funds") mentioned herein are special funds allocated by the municipal finance bureau and disbursed in the "case handling expenses" of the municipal people's courts at all levels in Beijing and are used to cover the bankruptcy expenses in the cases where the debtor's property is insufficient to pay the bankruptcy expenses.

Article 3 The Aid Funds shall be used to pay the following bankruptcy expenses arising from the performance of duties by the administrator:

1. The cost of managing, selling or distributing the debtor's property;

2. The cost of stamp carving, announcement, archive keeping, postage and transportation fee, etc.

3. The cost of convening creditors' meeting and hiring other staff;

4. Remuneration for the administrator.

Article 4 In case of any of the following circumstances, the administrator may apply to the people's court hearing the bankruptcy case for the use of the Aid Funds:

1. The debtor has no property to pay bankruptcy expenses and there is no interested party bearing the costs voluntarily;

2. The debtor's property is not enough to pay for bankruptcy expenses and there is no interested party bearing the costs voluntarily.

Article 5 The total amount of the Aid Funds for each case meeting the aid conditions shall be generally not greater than RMB 100,000. As for the case with scattered clues to property, numerous derivative actions and great difficulty in disposition of property, the total amount of the Aid Funds per case can be increased as appropriate, but shall not be greater than RMB 150,000.

Article 6 In each case, the part of the Aid Funds used to subsidize the administrator's remuneration shall be generally not greater than RMB 50,000.

Where there is no clue to property, or the simple bankruptcy case in which the whereabouts of personnel, property and account books are unknown, the administrator's remuneration shall not exceed RMB 30,000.

Where the debtor has scattered property clues, holds equity of other companies and there is great difficulty in property investigation or disposition, and there are numerous derivative actions and debtors, the administrator's remuneration can be increased as appropriate, ranging from RMB 50,000 to RMB 100,000.

Article 7 The following factors shall be taken into consideration when the amount of the Aid Funds for the administrator is determined:

1. The complexity of the case, including the debtor's property, financial status and disposal difficulty; 

2. The actual workload and efficiency of the administrator;

3. Loyalty, diligence and professionalism of the administrator;

4. Other circumstances that may affect the administrator's remuneration.

Article 8 Where the administrator is replaced, the people's court shall determine the amount of the Aid Funds for bankruptcy expenses before and after the replacement respectively, and the total amount shall not exceed the above limit.

Article 9 Where the administrator considers that the conditions for use of the Aid Funds are met, he shall, within 15 days after receiving the ruling of the people's court on the conclusion of the bankruptcy proceedings, apply to the collegial panel or the single judge hearing the bankruptcy case for the use of funds, and fill in the Application for Aid Funds for Bankruptcy Expenses and the Detailed List of the Settlement of Expenses for Administrator's Performance of Duties.

Article 10 The collegial panel or single judge shall verify the application materials submitted by the administrator, and shall inform the administrator within 5 days from the date of receipt of the materials if supplement and correction are required, and determine as appropriate the deadline for submittal of supplementary materials . Where the administrator fails to submit supplementary materials within the time limit without justified reasons, the application shall be deemed to have been withdrawn.

Article 11 Each intermediate people's court and district-level people's court shall establish an audit team of the Aid Funds for bankruptcy expenses which is composed of the leader in charge of the court for bankruptcy trial, leader in charge of the court for financial work and heads of bankruptcy trial department, finance department and internal supervision (inspection) department.

Article 12 Approval process of the Aid Funds:

1. The collegial panel or the single judge shall, within 15 days after receiving the administrator's application materials, put forward preliminary review comments, and fill in the Approval of Aid Funds for Bankruptcy Expenses.

2. Review by the president of the adjudication division;

3. Review by the audit team of the Aid Funds of the court hearing the case.

Article 13 Where the people's court approves the application of the administrator, it shall promptly notify the administrator. The judge undertaking the case shall handle procedures of payment at the finance department with the Application for Aid Funds for Bankruptcy Expenses, the Detailed List of the Settlement of Expenses for Administrator's Performance of Duties, the Approval of Aid Funds for Bankruptcy Expenses, vouchers of expenses for verification and confirmation, and payment invoices issued by administrator.
Where the people's court fails to approve the administrator's application, it shall give the reason.

Article 14 Within two years from the date of the termination of bankruptcy proceedings prescribed by the Enterprise Bankruptcy Law, the bankruptcy estates recovered or discovered shall be first used for return of the Aid Funds.

Article 15 After the Aid Funds are released, relevant materials shall be consolidated before being archived into the files of insolvency cases according to the principle of "one file for one case", and the bankruptcy adjudication division shall establish a special ledger.

Article 16 Each intermediate people's court or district-level people's court shall submit the quarterly Statement of the Use of Aid Funds for Bankruptcy Expense to Civil Division II and the Judicial Administration and Equipment Division of the Higher People's Court of Beijing Municipality for the record.

Article 17 Where the administrator provides false materials to get the Aid Funds, the people's court shall, in accordance with the provisions of the Enterprise Bankruptcy Law or the Civil Procedure Law, reprimand, impose a fine upon or cancel the qualification of the administrator as the case may be; where a crime is constituted, criminal responsibility shall be investigated in accordance with the law.

Article 18 The use and management of the Aid Funds shall strictly follow the relevant national financial system and be subject to the supervision of financial and supervisory departments and the audit of auditing department in accordance with the law.

Article 19 The Measures shall come into force as of the date of promulgation.
The Measures shall apply to bankruptcy cases which have not been concluded or which are accepted as of the date of implementation of the measures.