Why should collective units be transformed?

The specific reasons are as follows:

1, enterprises can form a complete business system and the ability to face the market directly and operate independently through restructuring;

2. When the company is restructured, its main business enters the joint-stock company, and its corresponding industrial property rights such as land, real estate and trademarks and non-patented technologies must enter the joint-stock company at the same time, so as to achieve asset integrity, business independence, personnel independence, financial independence and institutional independence;

3. Enterprise restructuring is conducive to establishing and improving the financial accounting system;

4. Enterprise restructuring and reorganization will make the equity relationship clear, and there will be no legal obstacles and hidden dangers of equity disputes;

5. Restructuring and reorganization enable enterprises to form a complete production, supply and marketing system by integrating their main business, maximize the efficiency of capital utilization, form core competitiveness and sustainable development ability, avoid horizontal competition, and reduce and standardize related transactions;

6. Enterprises can establish the basic corporate governance structure of shareholders' meeting, board of directors, board of supervisors and managers through reorganization.