The state holding company shall be a special enterprise legal person established by the state with independent investment, approved by the State Council, exercising the owner's rights over state-owned assets within the scope of authorization, engaging in asset management activities mainly by holding shares, and registered according to law. Generally, it should be a pure holding company. Such companies are not allowed to declare bankruptcy. When the company is liquidated, if the net assets are insufficient to pay off the debts, the insufficient part shall be borne by the State Council. In other words, generally speaking, such a corporate country cannot let it go bankrupt. Such companies not only carry out business activities in accordance with national industrial policies, but also complete social welfare tasks required by the state. The conditions for the establishment of such a company should be very strict. In addition to the general provisions, its main business should also be required to conform to the national industrial policy, and its industry should occupy a very important position in the national economy. Its net assets and total assets should reach a certain scale. In addition, there should be clear requirements and regulations on the documents submitted for approval, including the articles of association and business scope. The corporate governance structure of a company is also different from that of a general company. You can implement the general manager responsibility system, set up a party group and send a board of supervisors to the State Council.
The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.