The form of operation of collective ownership, the nature of collective ownership enterprises

1. What is the nature of a collective-owned enterprise?

1. Collective enterprises are neither state-owned enterprises nor private enterprises, but belong to the nature of death of enterprises under an independent ownership system. Collective-owned enterprises refer to economic organizations in which part of the working masses collectively own the ownership of the means of production, work together, and distribute according to work. A private enterprise is a for-profit economic organization whose assets are privately owned and employs more than 8 people.

2. Legal basis: Article 5 of the Regulations of the People's Republic of China on Urban Collectively Owned Enterprises.

The principles that collective enterprises should follow are: voluntary combination, self-financing, independent accounting, self-responsibility for profits and losses, independent operation, democratic management, collective accumulation, independent disposal, distribution according to work, and shareholding and dividends.

Collective enterprises should carry forward the spirit of hard work, diligence and thrift, and take the road of mutual assistance and cooperation and common prosperity.

Article 4 Urban collectively-owned enterprises (hereinafter referred to as collective enterprises) are socialist economic organizations whose property belongs to the collective ownership of the working masses, which practice common labor and in which distribution according to work is the main body in the mode of distribution.

The collective ownership of the working masses as used in the preceding paragraph shall comply with the provisions of any of the following:

1) Collectively owned by the working masses of the collective enterprise;

2) Collective ownership by the working masses within the scope of the joint economic organization of the collective enterprise;

3) The main investor is two or more collective enterprises, of which the property collectively owned by the working masses in (1) and (2) shall be dominant. The term "dominant position" as used in this item refers to the proportion of the property collectively owned by the working masses in the total property of the enterprise, which shall not be less than 51% under normal circumstances, and may be appropriately reduced under special circumstances with the approval of the original examination and approval department.

2. What are the nature of the pledge.

1. The subordination of the pledge. The subordination of a pledge means that the pledge is subordinate to the claim secured by it. Because the pledge is to secure the claim, the pledge is subordinate to the secured claim.

The parties may create a pledge for the future creditor's right, or they may create a pledge when creating the creditor's right, but the existence of the principal creditor's right must be present when the pledge is realized. The pledge is transferred with the transfer of the main creditor's right, and cannot be transferred separately from the main creditor's right. The pledge is extinguished with the extinction of the principal claim;

2. The indivisibility of the pledge. The indivisibility of the pledge means that the pledge is as indivisible as the mortgage right, that is, the entire value of the pledge and the entire security claim. The effect of the pledge extends to the entire subject matter of the pledge, even if part of the claim is repaid.

In other words, even if the debtor has paid off most of the debts and only a small part of the debts have not been paid, the pledgee must also exercise the pledge against the unliquidated claims against all the subject matter of the pledge. If the pledge is partially lost, the unlost part still guarantees all the creditor's rights, and the scope of the pledge cannot be reduced accordingly;

3. The subrogation in rem of the pledge. The subrogation in rem of the pledge refers to the effect of the pledge on the subrogation of the subject matter of the pledge;

4. Priority of compensation of pledge. The priority of repayment of the pledge means that the pledgee can preferentially repay its pledged secured claims with the value of the subject matter of the pledge when the debtor fails to perform its obligations.