What does corporate restructuring mean, what does corporate restructuring mean

Enterprise restructuring refers to the process of reorganizing state-owned enterprises, collective enterprises, and township enterprises from the traditional organizational system to a company system that meets the requirements of the modern enterprise system in accordance with the provisions of China's "Company Law" and other laws and regulations.

The restructuring methods of various types of enterprises are generally divided into: overall restructuring and partial restructuring.

Overall restructuring: Based on all the assets of the enterprise, through asset restructuring, the overall transformation into a standardized enterprise that meets the requirements of the modern enterprise system. The overall restructuring is especially suitable for the restructuring of small and medium-sized enterprises.

Partial restructuring: The enterprise reorganizes with part of its assets, and establishes a new enterprise by absorbing the investment of other shareholders or transferring part of the equity, and the original enterprise continues to be retained. Partial restructuring is more suitable for the restructuring of large enterprises, especially when setting up shares.

Enterprise restructuring, also known as "enterprise reorganization," refers to the change of enterprise ownership. To put it simply, it refers to the process of reorganizing state-owned enterprises, collective enterprises, and township enterprises into a company system in accordance with legal procedures. Usually the enterprise restructuring we refer to refers to the restructuring of state-owned enterprises, but in a broad sense, it also includes the restructuring of enterprises of other natures, such as the restructuring of collective enterprises, the restructuring of joint-stock cooperative enterprises, the restructuring of Sino-foreign cooperative enterprises, etc., and even more types of non-enterprise units, such as the restructuring of public institutions, are also collectively referred to as enterprise restructuring.

The goal of enterprise restructuring includes limited liability companies and shares, especially with the increase in the demand for listing of enterprises, many enterprises will take listed shares as their own restructuring goals. Through restructuring, some enterprises are reorganized into wholly-owned limited liability companies, some enterprises are reorganized into limited liability companies with multiple investors, some enterprises are reorganized into joint-stock enterprises, and some collective enterprises and township enterprises may also be reorganized into joint-stock cooperative enterprises. In fact, the purpose of restructuring is to establish a new type of enterprise organization that meets the requirements of the development of the socialist market economy through the reform of the property rights system.

gǎizhì changes form, essence, or quality, and sheepskin is transformed into parchment paper, changing political, economic, and other social systems.

Since the beginning of reform and opening up, China's business circles have been discussing and practicing the restructuring of state-owned enterprises, and have achieved certain results.

However, how to define the restructuring and how to measure the results of the restructuring have always been quite controversial. Some scholars once defined the restructuring: The so-called restructuring refers to breaking the enterprise system with ownership as the core under the old economic system and establishing a new modern enterprise system with property rights as the core that conforms to the laws of the market economy.

This definition accurately points out that at the beginning of the reform, the focus of SOE reform --- to transform wholly state-owned enterprises into companies with multiple investment entities.

Legal Analysis:1Enterprise restructuring, also known as "enterprise reorganization," refers to the change of enterprise ownership, and in simple terms, refers to the process of reorganizing state-owned enterprises, collective enterprises, and township enterprises into a company system in accordance with legal procedures.

2.Usually the enterprise restructuring we refer to refers to the restructuring of state-owned enterprises, the goal of enterprise restructuring includes limited liability companies and shares, the purpose of restructuring, in fact, is to establish a new type of enterprise that meets the requirements of the development of the socialist market economy through the reform of the property rights system.

Legal basis: Article 9 of the Company Law of the People's Republic of China A limited liability company is changed to a share, which shall meet the conditions of the share **** stipulated in this law. If the shares are changed to a limited liability company, they shall meet the conditions of a limited liability company as defined in this regulation.

If a limited liability company is changed to a share ****, or a share **** is changed to a limited liability company, the creditor's rights and debts before the change of the company shall be inherited by the company after the change.

Legal Analysis: Restructuring also refers to the change of enterprise ownership. Usually the enterprise restructuring we refer to refers to the restructuring of state-owned enterprises, but in a broad sense, it also includes the restructuring of enterprises of other natures, such as the restructuring of collective enterprises, the restructuring of joint-stock cooperative enterprises, and Sino-foreign cooperation.

Legal basis: Company Law of the People's Republic of China

Article 175 When a company is divided, its property shall be divided accordingly. In the case of a company division, a balance sheet and a list of assets shall be prepared. The company shall notify the creditors within 10 days from the date of making the resolution on the division, and make an announcement in the newspaper within 30 days.

Article 176 The debts of the company before the division shall be jointly and severally liable by the company after the division. However, unless otherwise agreed in the written agreement between the company and the creditor on the repayment of debts before the division.

Article 179 In the event of a merger or division of a company, if there is a change in the items to be registered in the company's registration, the company shall go through the change registration with the company registration authority in accordance with the law; If the company is dissolved, it shall go through the deregistration of the company in accordance with the law; If a new company is established, it shall go through the registration of the establishment of the company in accordance with the law. If a company increases or decreases its registered capital, it shall apply for change of registration with the company's intellectual registration authority in accordance with the law.

Legal Analysis: Institutional reform also refers to the change of ownership of enterprises. Generally speaking, when we talk about enterprise restructuring, we refer to the restructuring of state-owned enterprises.

However, the restructuring of enterprises also includes the restructuring of other enterprises, such as the restructuring of collective enterprises, the restructuring of joint-stock cooperative enterprises, the restructuring of Sino-foreign cooperative enterprises, etc., and even more types of restructuring of non-enterprise units, such as the restructuring of public institutions, which are also collectively referred to as enterprise restructuring. The goal of enterprise restructuring includes limited liability companies and shares, and with the increasing demand for enterprise listing, many enterprises take the listed limited liability company as the goal of reform.

Legal basis: Law of the People's Republic of China on State-owned Assets of Enterprises Article 40 The restructuring of an enterprise shall be decided by the institution performing the duties of the investor or by the shareholders' meeting or the general meeting of shareholders of the company in accordance with legal procedures.