Abstract
Corporate Reorganization is a process that allows poorly managed enterprises under financial distress to continue its operation, and reduce financial losses for creditors, shareholders, investors, employees and relevant stakeholders. However, due to the disadvantaged position of the employees, their rights pose as a tremendous issue in the process of Corporate Reorganization.
Over the years, successful examples of Corporate Reorganization have been rare. The company needs enough cash flow to cover the mandatory costs of implementing a Corporate Reorganization. It is difficult for a company to obtain funding from financial institutes to undergo Corporate Reorganization, since there may be numerous uncertainties. Only with the involvement of new investors, who hold the funds, would allow the firm be able to reduce its delinquent debts with its additional cash flow. New executives who are involved in restructuring would then try to renegotiate labor contracts to reduce overhead costs. The problem of severance fees would pose as a significant conflict between the company and its employees. Most employees have no right to actively get involved in the restructuring plan .The lack of legislative protection for labor rights is a main issue in Taiwan and China. Through the legislation, we expect to see great improvements in the future.
This study is based on cross-strait Corporate Reorganization, emphasizing on the protection of labor rights. The contents of this paper are shown as below:
Chapter One: Introduction.
Chapter Two: Protection of Labor Rights under Corporate Reorganization in China.
Chapter Three: Protection of Labor Rights under Corporate Reorganization in Taiwan.
Chapter Four: Issues of new executives Involved in Restructuring.
Chapter Five: Suggestions for the Reform of Reorganization in Taiwan.
