What is corporate restructuring?

Legal subjectivity:

First, what is enterprise restructuring? Enterprise restructuring also refers to the change of enterprise ownership. Usually, the enterprise restructuring we refer to refers to the restructuring of state-owned enterprises, but in a broad sense, it also includes the restructuring of other enterprises, such as collective enterprises, joint-stock cooperative enterprises and Chinese-foreign cooperative enterprises. Even more types of non-enterprise units, such as institutions, are also collectively referred to as enterprise restructuring. The objects of enterprise reorganization include limited liability companies and joint-stock companies, especially with the increasing demand for listing, many enterprises take listed joint-stock companies as their reorganization objects. The restructuring plan of state-owned enterprises should be approved by the workers' congress or the workers' congress; The restructuring of major wholly state-owned enterprises must be audited by the state-owned assets management institution and reported to the government at the same level for approval. Important wholly state-owned enterprises are determined according to the regulations of the State Council. The restructuring of private enterprises should be approved by the board of directors or the shareholders' meeting. Assets reorganization: assets reorganization of listed companies and assets reorganization of unlisted companies. Second, what are the ways of corporate restructuring? The reorganization methods of various enterprises are generally divided into: overall reorganization and partial reorganization. 1. Overall restructuring refers to the overall transformation into a standardized enterprise that meets the requirements of modern enterprise system based on all assets of the enterprise through asset restructuring. Overall restructuring is particularly suitable for small and medium-sized enterprises. 2. Partial reorganization and partial restructuring refers to the reorganization of enterprises with some assets, and the establishment of new enterprises by absorbing investment from other shareholders or transferring part of equity, and the original enterprises will continue to be retained. Partial reorganization is more suitable for the reorganization of large enterprises, especially when establishing a joint stock limited company. Enterprise reorganization generally includes internal startup, external startup and combination of internal and external startup. 1, internal entrepreneurship is mainly to absorb internal employees, including operators, and realize diversification of investment subjects. 2. External entrepreneurship refers to the overall merger, acquisition or shareholding of state-owned enterprises through other ownership enterprises. 3. The combination of internal and external entrepreneurship means that one is the introduction of external advantageous enterprises, and the other is the shareholding of internal employees. Whether it is started internally or externally, we can further deepen the reform of property rights system according to the actual situation of enterprises and form diversified investment enterprises with internal and external shares. Whether it is a whole reorganization or a partial reorganization, it is necessary to be familiar with the relevant legal provisions. It is recommended to consult a professional lawyer to avoid unnecessary legal risks. Mainly to make major changes to the company's existing situation, involving business scope, management methods and so on. As far as the ways of corporate restructuring are concerned, there are two ways, namely, overall restructuring and partial restructuring. Usually, when a company applies for bankruptcy, it can also be restructured and reorganized if it meets the requirements.

Legal objectivity:

Article 9 of the Company Law of People's Republic of China (PRC) Where a limited liability company is changed into a joint stock limited company, it shall meet the requirements of a joint stock limited company as stipulated in this Law. When a joint stock limited company is changed into a limited liability company, it shall meet the conditions of a limited liability company as stipulated in this Law. Where a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company. Article 95 of the Company Law of People's Republic of China (PRC) When a limited liability company is changed into a joint stock limited company, the total amount of capitalization shall not be higher than the company's net assets. When a limited liability company is changed into a joint stock limited company, the public offering of shares for the purpose of increasing capital shall be handled according to law.