Due to the failure to settle the debts due, Jianshe Garment Trading Co Ltd (Jianshe Co) was declared bankrupt by its creditors. In October 2010 the court rendered an order to accept the application of bankruptcy and designated a bankruptcy administrator. During the process of bankruptcy liquidation the bankruptcy administrator found that Jianshe Co had given up a credit of RMB 200,000 yuan owed by its affiliate enterprise in August 2009.The bankruptcy administrator also found that some shareholders of Jianshe Co failed to made full capital contributions as prescribed in the agreement of incorporation.Required:Answer the following questions in accordance with the Enterprise Bankruptcy Law of China, and give your reasons for your answer:
(a) (i) State whether the action of giving up credit can be revoked during the process of liquidation; (4 marks)(ii) State whether the court should grant an order to revoke the act of giving up credit. (3 marks)
