A wholly state-owned enterprise means that all the assets of the enterprise are owned by the state, and the state grants the enterprise management right according to the principle of separation of ownership and management right. A wholly state-owned enterprise shall obtain legal person status according to law, operate independently, be responsible for its own profits and losses, conduct independent accounting, and bear civil liability with the property that the state has authorized it to operate and manage. Its nature is an unincorporated economic organization.
Legal basis:
The provisions of this section shall apply to the establishment and organization of Article 64 of the Company Law of People's Republic of China (PRC); Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply.
A wholly state-owned company as mentioned in this Law refers to a limited liability company which is solely funded by the state and authorized by the State Council or the local people's government to perform the responsibilities of the investor.