Legal and policy basis for the reform of property rights of collective enterprises:
1. General Principles of the People’s Republic of China and Civil Law.
2. Company Law of the People's Republic of China.
3. Regulations of the People's Republic of China on Collectively Owned Enterprises in Towns and Country.
4. "Implementation Measures for the Separation of Main and Auxiliary Businesses in State-owned Large and Medium-sized Enterprises, Restructuring, Diversion and Placement of Surplus Personnel" (Guojingmaoqigai [2002] No. 859).
Extended information:
Implementation Measures on the Separation of Main and Auxiliary Industries of State-owned Large and Medium-sized Enterprises, the Restructuring and Diversion of Auxiliary Industries and the Relocation of Surplus Personnel
Document Number: State Economic and Trade Enterprise Reform [ 2002] No. 859
1. Specific policies on the diversion and resettlement of employees:
1. "Ministry of Labor's Economic Compensation Measures for Violation and Termination of Labor Contracts" (issued by the Ministry of Labor [1994 Application of No. 481):
Article 5 applies to compensation for the termination of the labor contract through negotiation between the parties.
Article 8 applies to compensation for unilateral termination of employee labor contracts by an enterprise.
2. Refer to and apply the State Economic and Trade Commission Guojingmaoqigai [2002] No. 859 document:
(1) The process of restructuring and diversion involves asset pricing, loss write-off, property rights change, etc. Relevant matters shall be handled with reference to the Ministry of Finance's "Interim Provisions on State-owned Capital Management and Financial Handling for Enterprise Corporate Restructuring" (Caiqi [2002] No. 313).
(2) Restructured enterprises can use the company's net assets to pay economic compensation for terminating employees' labor relations, etc., and offset the net assets according to prescribed procedures.
(3) The net assets of the restructured enterprise can be paid and reserved in accordance with the relevant policies and regulations of state-owned enterprises, and the remaining portion can be distributed to the employees of the restructured enterprise.
(4) With reference to relevant national land management laws and regulations, administratively allocated land occupied by restructured enterprises can continue to be used in the form of allocation as long as the land use is not changed; if the land use rights need to be transferred, the transfer must be handled in accordance with the law Procedures; if the use needs to be changed, it should be verified in accordance with the "Catalogue of Allocated Land" (Order No. 9 of the Ministry of Land and Resources).
If the changed use complies with the "Allocation of Land Catalog", it can continue to be used in the form of allocation. If it does not comply with the "Allocation of Land Catalog", after completing the paid land use procedures in accordance with the law and paying the land transfer fee to the state, Proceeds from the transfer of real estate projects are allowed to be used to pay for restructuring costs.
3. Relevant matters involving the diversion and resettlement of employees and the disposal of assets used to resettle employees must be reviewed and approved by the employees (representatives) conference.
2. Regarding the scope of personnel and decision-making methods participating in the allocation of collective asset stocks
1. Carefully handle the issue of allocation of collective asset stocks. Existing assets must be disposed of by all current employees in accordance with the law.
2. The existing asset disposal plan, enterprise restructuring plan, and employee diversion and resettlement plan shall be discussed and approved by all employees.
3. Notify all personnel who have the right to participate in the disposal of existing assets to participate in the enterprise restructuring in accordance with the law.
4. The owners of *** and *** assets of a collective enterprise have the right to decide on the enterprise restructuring plan. The enterprise must ensure that the enterprise restructuring process is open, just and fair, and in accordance with legal procedures and policies operate.
Reference: China Finance Director Network - National Economic and Trade Enterprise Reform [2002]