What is corporate reform?

The reform of company system also refers to the change of company ownership. Speaking of this time, it is usually the reform of state-owned enterprises in China, which is also the most concerned point in the investment market. Of course, it includes all enterprises in a broad sense, and the words here are mainly state-owned enterprises. Enterprise restructuring is the transformation of limited liability companies and joint-stock companies, usually for listing, because listed companies can only be joint-stock companies.

Various ways of enterprise reform and reorganization are generally divided into: overall reorganization and partial reorganization.

Legal basis: 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 conditions 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.