2. The microfinance company is an enterprise legal person, with independent legal person property and legal person property rights, and bears civil liability for its debts with all its property. Shareholders of small loan companies enjoy the right to return on assets, participate in major decisions and choose managers according to law, and are liable to the company to the extent of their subscribed capital contribution or subscribed shares.
Operating principles of small loan companies
1. Small loan companies should establish a salary distribution system and a positive incentive and restraint mechanism suitable for their own business characteristics and scale, and cultivate a corporate culture suitable for local rural economic development.
2. Small loan companies independently choose loan targets under the principle of serving farmers, agriculture and rural economic development. When granting loans, microfinance companies should adhere to the principle of "small amount and dispersion", encourage microfinance companies to provide credit services for farmers and micro-enterprises, and strive to expand the number of customers and service coverage. The loan balance of the same borrower shall not exceed 5% of the net capital of the microfinance company. Within this standard, the maximum loan limit can be set according to the local economic situation and the per capita GDP level of microfinance companies.
3. Small loan companies should establish a credit mechanism suitable for their own business development and reasonably determine the credit lines of different borrowers. Within the credit line, microfinance companies can issue loans in the form of one-time credit, multiple use and circulating lending.
4. Small loan companies should establish and improve the loan management system, clarify the business processes and operational norms such as pre-loan investigation, in-loan review and post-loan inspection, and effectively strengthen loan management.
5. Small loan companies shall, in accordance with the relevant provisions of the state, ensure that the asset loss reserve adequacy ratio is always above 100%, comprehensively cover risks, write off bad debts in time, and truly reflect the operating results.
6. A microfinance company shall establish a commitment system for promoters and shareholders. The organizer issues a letter of commitment to the examination and approval authority. Shareholders of the company signed a letter of commitment with the microfinance company, promising to consciously abide by the articles of association, participate in management and take risks.
7. Small loan companies shall establish and improve the internal control system and internal audit mechanism, improve the ability of risk identification and prevention, check and evaluate the implementation of internal control, correct and improve the weak links of internal control, and ensure compliance and legality.
8. Small loan companies shall implement the unified national financial accounting system for financial enterprises, truly record and comprehensively reflect their business activities and financial status, prepare financial accounting reports and submit them to the competent authorities for deliberation. Conditional microfinance companies can introduce external audit system.