What is the theoretical basis of assets reorganization of state-owned enterprises?

Enterprise reorganization is divided into internal reorganization and external reorganization. Internal reorganization means that enterprises (or asset owners) readjust and allocate their internal assets according to the principle of optimal combination, so as to give full play to the local and overall benefits of existing assets and bring the greatest economic benefits to operators or owners. In this reorganization process, only the internal management mechanism and asset allocation have changed, and the ownership of assets has not changed, which belongs to the internal management of enterprises. So there is no legal relationship of rights and obligations with others. External reorganization enables enterprises or enterprises to divest non-performing assets, allocate excellent assets, give full play to the benefits of existing assets and obtain the greatest economic benefits through asset transactions (mergers and acquisitions) and exchanges. In this form of asset reorganization, enterprises buy or sell some assets, or lose the qualification of independent subject. In fact, the ownership of assets is only transferred between different legal subjects. Therefore, the legal essence of this form of asset transfer is asset sale.

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Reply time: February 2022-11. Please refer to the latest business changes announced by Ping An Bank in official website.