Legal analysis: Enterprise reorganization is also called "enterprise reorganization". In China, it refers to the process that state-owned enterprises, collective enterprises and township enterprises are reorganized from the traditional organizational system into a company system that meets the requirements of modern enterprise system in accordance with the Company Law of People's Republic of China (PRC) and other laws and regulations. Its purpose is to establish a modern enterprise system, realize the transformation of enterprise management mechanism, and promote the effective allocation of resources, technological progress and economic benefits. 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 companies, and some collective enterprises and township enterprises may be reorganized into joint-stock cooperative enterprises.
Legal basis: People's Republic of China (PRC) Company Law.
Article 1 This Law is formulated for the purpose of regulating the organization and behavior of companies, protecting the legitimate rights and interests of companies, shareholders and creditors, maintaining social and economic order and promoting the development of socialist market economy.
Article 2 The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.
Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.