On March 19, the China Business Law Journal announced the winners of the Deals of the year 2023 awards. After examining the importance, complexity, innovation and scale of each project, King&Capital won the Deals of the year 2023 award for the first compulsory liquidation of an association in Beijing.

Liquidation, Bankruptcy and Reorganization

liquidation, bankruptcy and reorganization

Beijing's first case of compulsory liquidation of an association legal person

The China Electronic Commerce Association (“CECA”) was deregistered by the Ministry of Civil Affairs (“MCA”) and applied for compulsory liquidation by the Ministry of Industry and Information Technology (“MIIT”), the competent authority of the CECA, due to problems in its corporate governance structure, internal operation standards, financial audits, etc., as well as the fact that the CECA failed to submit to the annual audit of a national social organization for three consecutive years.

This case is the first case of compulsory liquidation of an association in Beijing, and is an exploration of the exit mechanism for non-profit legal persons. At the same time, as a typical case of delinking trade associations and chambers of commerce from the competent administrative authorities, it also further promotes the establishment of a favorable business environment.

King&Capital acted as the liquidator to comprehensively investigate and verify the operation, assets, tax and claims of CECC, promote the liquidation procedure, participate in the litigation between it and its creditors, formulate a perfect repayment plan and assist in its implementation.

Legal Advisor: King&Capital Law Firm acted as the liquidation team of China Electronic Commerce Association (CECA).

China Business LawJournal is the leading bilingual legal media in the international market, specializing in providing practical legal advice and in-depth analysis for corporate lawyers and Chinese and foreign lawyers engaged in cross-border investment in China.