What is the definition of state-owned enterprise restructuring?

Enterprise restructuring, also known as "enterprise reorganization", refers to the process that state-owned enterprises, collective enterprises and township enterprises are reorganized from the traditional organizational system into a company system that meets the requirements of modern enterprise system according to China's "Company Law" and other laws and regulations. 1. What is the legal basis for the restructuring of state-owned enterprises? The Law of People's Republic of China (PRC) on State-owned Assets of State-owned Enterprises was formulated by the National People's Congress Standing Committee (NPCSC) and came into force on May 1 2009. 2. People's Republic of China (PRC) Company Law enacted by the National People's Congress Standing Committee (NPCSC), enacted on February 29th, 1993, first revised on February 25th, 1999, and second revised on October 27th, 2005, 2065433. 3. The General Office of the State Council forwarded the notice of the State-owned Assets Supervision and Administration Commission of the State Council on regulating the opinions on the restructuring of state-owned enterprises (Guo Ban Fa [2003] No.96), which was formulated by the State-owned Assets Supervision and Administration Commission of the State Council and came into force on June 30, 2003. 4. The Interim Measures for the Administration of the Transfer of State-owned Property Rights of Enterprises formulated by the Ministry of Finance and the State-owned Assets Supervision and Administration Commission of the State Council (Order No.3 of the State-owned Assets Supervision and Administration Commission and the Ministry of Finance) came into effect on February 1 2004. 5. The Interim Provisions on the Transfer of State-owned Property Rights of Enterprises to Management (Document No.78 of State-owned Assets Supervision and Administration Commission of the State Council [2005]) was formulated by the Ministry of Finance and came into force on April 1 2005. 6. Implementation Opinions on Further Standardizing the Restructuring of State-owned Enterprises (Guo Ban Fa [2005] No.60) formulated by the State-owned Assets Supervision and Administration Commission of the State Council and forwarded by the General Office of the State Council, which came into effect on June 5, 2005+February 9. 7. The State-owned Assets Supervision and Administration Commission of the State Council on Further Implementing the Notice of the General Office of the State Council on Forwarding the Implementation Opinions of the State-owned Assets Supervision and Administration Commission of the State Council on Further Standardizing the Restructuring of State-owned Enterprises (Document No. State-owned Assets Supervision and Administration Commission of the State Council [2006] 13 1, which came into effect on July 2, 2006. Second, the categories and methods of enterprise restructuring. The restructuring methods of various enterprises are generally divided into: overall restructuring and partial restructuring. 1. Overall restructuring refers to the overall transformation into a standardized enterprise that meets the requirements of modern enterprise system based on all assets of the enterprise through asset restructuring. Overall restructuring is particularly suitable for small and medium-sized enterprises. 2. Partial reorganization and partial restructuring refers to the reorganization of enterprises with some assets, and the establishment of new enterprises by absorbing investment from other shareholders or transferring part of equity, and the original enterprises will continue to be retained. Partial reorganization is more suitable for the reorganization of large enterprises, especially when establishing a joint stock limited company. Enterprise reorganization generally includes internal startup, external startup and combination of internal and external startup. 1, internal entrepreneurship is mainly to absorb internal employees, including operators, and realize diversification of investment subjects. 2. External entrepreneurship refers to the overall merger, acquisition or shareholding of state-owned enterprises through other ownership enterprises. 3. The combination of internal and external entrepreneurship means that one is the introduction of external advantageous enterprises, and the other is the shareholding of internal employees. Whether it is started internally or externally, we can further deepen the reform of property rights system according to the actual situation of enterprises and form diversified investment enterprises with internal and external shares.

Legal objectivity:

Guiding Opinions on Deepening the Reform of State-owned Enterprises intensify the reform of group company system, actively introduce various investors to realize equity diversification, vigorously promote the restructuring and listing of state-owned enterprises, and create conditions to realize the overall listing of group companies. According to the functional orientation of different enterprises, the proportion of state-owned shares will be gradually adjusted to form an operating mechanism with diversified ownership structure, standardized shareholder behavior, effective internal constraints and efficient and flexible operation. Allow some state-owned capital to be converted into preferred shares, and explore the establishment of a national special management stock system in a few specific areas.