The characteristics of zombie enterprises are as follows:
1. This enterprise is very large. Zombie enterprises are mostly large state-owned enterprises with more employees. These state-owned enterprises occupy a relatively important position in the local economy. In order to maintain stability, the government will neither let them go bankrupt nor regenerate them. The status quo can only be maintained through continuous blood transfusion by banks or governments.
2. Overcapacity in the industry. Zombie enterprises are mostly industries with overcapacity, such as steel, cement and household appliances. These industries blindly expand production, leading to overcapacity, which eventually leads to product backlog and employee unemployment.
3. Low-end industries. From the perspective of industry, zombie enterprises basically belong to the manufacturing field, with low added value and small profit margin. Due to low technology content and difficulties in transformation and upgrading, these industries have a heavy debt burden and are ultimately insolvent.
The symptoms of zombie enterprises are similar, but the causes are different. It is generally believed that the formation of zombie enterprises has internal factors such as poor management and decision-making mistakes, as well as micro factors such as product structure and market competition, and further, it is due to the imperfect market system and mechanism.
This reflects the reasons for the formation of zombie enterprises from a historical perspective, but it does not reflect that the transformation of economic system and development mode is also an important reason for the formation of zombie enterprises. I think the formation and outstanding problems of zombie enterprises are closely related to the current background of China's economic development. Specifically, the main reasons for the formation of zombie enterprises are as follows:
1. Due to the adjustment of the national economic structure, some enterprises that do not meet the needs of industry development, regional layout and products have become the targets of merger, reorganization and liquidation.
2. Economic development has entered a new normal, and some enterprises can't adapt and fall behind. Under the new normal, GDP has grown from high speed to medium speed, and the mode of economic development has changed from investment-driven to innovation-driven. Those enterprises that only rely on a large amount of capital to form scale without innovation advantages become zombie enterprises.
3. Supply-side structural reforms are advancing, and investment to expand demand through stimulus policies is decreasing. When the effective demand is not met and the new supply is not formed, the original products cannot meet the current demand, and the industries such as steel, coal and cement have overcapacity, making it difficult for enterprises to operate, transform and upgrade, leading to becoming zombie enterprises.
4. The market system is not perfect, and the flow of enterprises and production factors is not smooth. For example, there are a lot of problems left over from history in state-owned enterprises, and the modern enterprise system is imperfect, including the transformation of employee identity, the operation of social functions, and the confusion of creditor's rights and debts. Enterprise bankruptcy, industrial and commercial cancellation and other exit mechanisms are not perfect.
5. Influence of stakeholders. Managers are worried about accountability, employees are afraid of losing job opportunities, banks are worried that loans will become bad debts, customers are also worried about losses, and stakeholders are unwilling or hinder enterprises from quitting, all of which promote the formation of zombie enterprises.
6. Overprotection by the government. Under the original economic growth model, local governments constantly encourage enterprises to invest in public utilities and competitive fields to stimulate the local economy. When these homogeneous investments encounter economic recession, they will soon become the burden of enterprises. However, due to the consideration of local taxation, employment and social stability, the government does not want enterprises to go bankrupt, does not support court acceptance, and continues to use financial subsidy coordination and bank support to hope that risks will not be exposed in a short time, and accumulated debts will lead to zombie enterprises. "
legal ground
Company Law of the People's Republic of China
Article 185 The liquidation group shall notify creditors within 10 days from the date of its establishment and make an announcement in a newspaper within 60 days. Creditors shall, within 30 days from the date of receiving the notice, and within 45 days from the date of announcement if they have not received the notice, declare their claims to the liquidation group.
When a creditor declares its creditor's rights, it shall explain the relevant matters of the creditor's rights and provide supporting materials. The liquidation group shall register the creditor's rights.
During the declaration of creditor's rights, the liquidation group shall not pay off the creditors.
Article 186 After clearing up the company's assets, preparing the balance sheet and list of assets, the liquidation group shall formulate the liquidation plan and report it to the shareholders' meeting, shareholders' meeting or the people's court for confirmation.
After paying the liquidation expenses, employees' wages, social insurance expenses and statutory compensation, paying the taxes owed and paying off the company's debts, the company's property shall be distributed according to the proportion of capital contribution of shareholders of a limited liability company and the proportion of shares of shareholders of a joint stock limited company.
During the liquidation period, the company shall survive, but shall not carry out business activities unrelated to liquidation. The company's property shall not be distributed to shareholders before it is paid off in accordance with the provisions of the preceding paragraph.
Enterprise Bankruptcy Law of the People's Republic of China
Article 120 If the bankrupt has no property to distribute, the administrator shall request the people's court to make a ruling to terminate the bankruptcy proceedings.
After the final distribution is completed, the administrator shall promptly submit a report on the distribution of bankruptcy property to the people's court and request the people's court to make a ruling to terminate the bankruptcy proceedings.
The people's court shall, within fifteen days from the date of receiving the request of the administrator to terminate the bankruptcy proceedings, make a ruling on whether to terminate the bankruptcy proceedings. If the ruling is terminated, it shall be announced.