Separation procedure of state-owned enterprises

Legal analysis: company division can take two forms: derivative division and new division. If the company needs to be divided, the shareholders' meeting of the company shall make a resolution, and after fulfilling the obligations of notifying creditors and handling creditor's rights in accordance with the provisions of the Company Law, submit relevant registration materials to the company registration authority and apply for registration of change. Derivative separation refers to the division of some assets by a company, the establishment of one or more new companies, and the existence of the original company. The newly established company shall go through the industrial and commercial registration, and the existing original company shall go through the registration of change.

Legal basis: People's Republic of China (PRC) Company Law.

Article 5 A company engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities. The legitimate rights and interests of the company are protected by law and shall not be infringed.

Article 6 To establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the requirements of this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those that do not conform to the provisions of this law shall not be registered as limited liability companies or joint stock limited companies.