After a court rules on bankruptcy reorganization, an enterprise will be affected by many factors during the reorganization process. Different factors will have different impacts on the effect of the reorganization. Only by paying attention to these factors affecting the reorganization effect and correctly grasping their impacts can the smooth progress of the reorganization be ensured and the enterprise be promoted to resume normal production and operation.

I. Corporate Governance

The corporate governance structure is the core content of the modern enterprise system, and it is a system for controlling and managing the company.

• A sound corporate governance structure is the guarantee for the effective operation of internal control. Good corporate governance can improve an enterprise's management capabilities, promote the company to achieve strategic and financial goals, reduce agency costs, and better safeguard the rights and interests of stakeholders.

• During the bankruptcy reorganization process, the company's governance structure is in an abnormal operating state, and the company's control power is forced to be transferred. The intervention of judicial organs, administrators, reorganization investors and creditors requires the redistribution of power among all parties. The original governance structure is no longer applicable. Bankrupt enterprises need to make changes and adjustments to the original governance structure in light of the newly emerging subjects and elements.

During the reorganization process, enterprises need to review the original governance structure, consider its impact on bankruptcy, then judge the areas that need adjustment and optimization, clarify the responsibilities of all parties, define the scope of authority of the company's shareholders (general) meeting, board of directors and supervisory board, balance the rights and obligations of all parties, check and balance each other, and continuously optimize the enterprise governance structure, etc., so as to realize the upgrading of the corporate governance structure and further promote the sound development of the company.

II. Human Resources

Human resources are the foundation of enterprise development, employees are the greatest productive force of an enterprise, and the development of an enterprise is inseparable from the quality and quantity of talents. Effective human resource management can reduce enterprise costs, create competitive advantages, increase enterprise value, and promote the realization of enterprise strategic goals.

Enterprises that enter bankruptcy often face the problem of brain drain, and employees choose to resign because they lose confidence in the enterprise's development. No matter how good a general is, he can only lose battles without soldiers. The normal operation of an enterprise is also inseparable from the support of employees. Enterprises undergoing bankruptcy reorganization should do a good job in human resource management during the reorganization stage.

The Reform Plan for Accelerating the Improvement of the Market Entity Exit System issued in June 2019 stipulates that:

Improve the enterprise bankruptcy reorganization system, establish a mechanism for absorbing personnel with professional qualifications and capabilities to participate in the operation and management of reorganized enterprises, and promote reorganized enterprises to maintain operational value.

Human resources play an important role in the operational value of enterprises. During the reorganization process:

• Conduct a multi-faceted evaluation of the company's existing employees, actively retain the company's key personnel, rebuild employees' confidence, and attach importance to personnel with core competitiveness;

• On the other hand, absorb and introduce professional personnel from outside the company, formulate feasible management systems, build a scientific and reasonable organizational structure for human resource management, etc., encourage and support capable employees to create value for the company, and promote the smooth progress of enterprise reorganization with good human resource management.

III. Support from the Government and Courts

The government and courts are important subjects in the reorganization process of bankrupt enterprises. The success of bankruptcy reorganization is inseparable from the support of the government and courts. Enterprise bankruptcy will affect social stability. During the reorganization process, the enterprise's resumption of production and operation, tax issues, judicial freezing, credit repair, relevant administrative approval procedures, and communication and coordination with government functional departments all require the support of the government and courts.

"Government-Court Linkage" refers to the government leading the coordination and overall planning of affairs and the court leading the advancement of judicial procedures in the bankruptcy process.

The Reform Plan for Accelerating the Improvement of the Market Entity Exit System stipulates the role of the government in enterprise bankruptcy:

Local people's governments at all levels shall actively support enterprises that are in financial distress and meet the bankruptcy conditions to carry out reorganization or bankruptcy liquidation. Encourage local people's governments at all levels to establish a normalized judicial and administrative coordination mechanism, give play to the role of the government in the enterprise bankruptcy process in accordance with the law, coordinate and solve problems such as maintaining social stability, funding guarantee, credit repair, and enterprise cancellation during the bankruptcy process, and avoid improper intervention in bankruptcy judicial affairs at the same time.

The government-court linkage mechanism plays an important guarantee role in the reorganization of distressed enterprises, and attention should be paid to the role of government-court linkage in the reorganization process.

Bankrupt enterprises should take the initiative to keep in touch with the government and courts, actively communicate with the government and courts to ask for help, find relevant policies beneficial to the enterprise, seize the best opportunity, actively cooperate with the relevant arrangements of the government and courts, and jointly escort the successful reorganization of bankrupt enterprises.

Conclusion

The successful reorganization of bankrupt enterprises requires the joint promotion of many factors, and the above factors are only a few of the more significant ones. During the reorganization process, enterprises need to avoid problems in key points and details, take a down-to-earth approach in every step, maximize the protection of the interests of all parties, and thus promote the bankruptcy reorganization system to exert its best effect.