Legal basis: Interim Measures for the Administration of the Transfer of State-owned Property Rights of Enterprises
Article 12 In accordance with the examination and approval procedures stipulated in these Measures, after the transfer of state-owned property rights of an enterprise is approved or decided, the transferor shall organize the transfer target enterprise to carry out assets verification in accordance with the relevant provisions, prepare the balance sheet and asset transfer list according to the results of assets verification, and entrust an accounting firm to conduct a comprehensive audit (including the outgoing audit of the legal representative of the transfer target enterprise in accordance with the relevant provisions of the state). The identification and write-off of asset losses shall be handled in accordance with relevant state regulations. If the transferor no longer holds a controlling position due to the transfer of state-owned property rights of the invested enterprise, the state-owned assets supervision and administration institution at the same level shall organize assets verification and entrust social intermediary institutions to carry out related business. Social intermediary institutions shall conduct business independently and impartially according to law. Enterprises and individuals shall not interfere with the normal practice of social intermediary institutions.
Article 13 On the basis of asset verification and audit, the transferor shall, in accordance with the relevant provisions of the state, entrust an asset appraisal institution with corresponding qualifications to conduct asset appraisal. After approval or filing, the evaluation report will be used as a reference for determining the transfer price of state-owned property rights of enterprises. In the process of property right transaction, when the transaction price is lower than 90% of the evaluation result, the transaction should be suspended and the transaction can be continued only with the consent of the relevant property right transfer examination and approval authority.
Article 14 The transferor shall entrust the property rights transfer announcement to the property rights trading institution to publish it in the economic or financial newspapers and websites of the property rights trading institution publicly issued at or above the provincial level, publicly disclose the information on the transfer of state-owned property rights of enterprises, and extensively solicit the transferee. The announcement period of property right transfer is 20 working days. The information on the transfer of state-owned property rights of enterprises disclosed by the transferor shall include the following contents:
(a) the basic situation of the transfer target;
(2) the composition of the property rights of the target enterprise;
(three) the internal decision-making and approval of property rights transfer;
(four) the main financial index data of the target enterprise recently audited;
(five) the evaluation, approval or filing of the assets of the transfer target enterprise;
(six) the basic conditions that the transferee should have;
(seven) other matters that need to be disclosed.