Supplementary Notice On Merger And Bankruptcy And Re Employment Of Workers

The people's governments of all provinces, autonomous regions and municipalities directly under the central government, ministries and commissions under the State Council, and institutions directly under the State Council:

According to the spirit of the People's Republic of China bankruptcy law (hereinafter referred to as the "bankruptcy law") and the State Council's notice on the issues related to the trial of state owned enterprises in some cities (No. 1994] 59), the merger and bankruptcy work has been gradually carried out and the work has been successful.

However, a number of cities and regions have also violated the scope of application of the document No. 1994 [50] to implement the bankruptcy of enterprises.

The State Council emphasizes that the bankruptcy related policies in Document No. 1994 issued by the State Council [No. 59] are applicable only to the state-owned industrial enterprises within the scope of the "optimized capital structure" pilot cities designated by the State Council (hereinafter referred to as the pilot cities).

State owned enterprises in non pilot cities and regions are bankrupt.

It can only be implemented in accordance with the provisions of the bankruptcy law, that is, the proceeds from the disposal of property by bankrupt enterprises must be used to pay debts in proportion, and the cost of settling the employees of bankrupt enterprises can only be resolved through local government subsidies, civil remedies and social security channels.

The bankruptcy of non-state-owned enterprises must be strictly implemented in accordance with the Civil Procedure Law of the PRC.

In order to standardize enterprise bankruptcy, encourage enterprises to merge, implement reemployment projects for surplus employees in state-owned enterprises, promote industrial structure adjustment, optimize capital structure and pform operation mechanism, the supplementary notice is given to the following problems: annexation and bankruptcy and reemployment of state-owned enterprises (hereinafter referred to as enterprises).

I. organization and leadership of mergers and bankruptcies and re employment of employees

The State Economic and Trade Commission is responsible for the organization and coordination of mergers and bankruptcies and re employment of enterprises throughout the country.

In order to strengthen the organizational leadership of the merger and bankruptcy of enterprises in the pilot cities and the re employment of workers, the leading group of national mergers and bankruptcies and reemployment of workers was set up (hereinafter referred to as the national leading group), composed of the State Economic and Trade Commission (Group), the State Reform Commission, the Ministry of finance, the Ministry of labour, the people's Bank of China, the State Land Bureau and the state owned Assets Management Bureau, and invited the NPC Law and Industry Commission and the Supreme People's court to participate.

The main responsibilities are: responsible for organizing, leading and coordinating the work of merger and bankruptcy and re employment of workers in the pilot cities nationwide; formulating the compilation method of the enterprise merger and bankruptcy and the re employment of workers and workers; giving the pre allocation scale of the remaining reserves for bad debts in provinces, autonomous regions and municipalities directly under the central government (hereinafter referred to as the provinces, municipalities and municipalities); examining the provincial, regional and municipal work plans for mergers, bankruptcies and reemployment of employees; guiding the work of the coordination group of the merger, bankruptcy and re employment of enterprises in provinces, autonomous regions and municipalities (hereinafter referred to as the "provincial, regional and municipal coordination group"); and formulating the plan for the national enterprise merger and bankruptcy and the re employment of workers, and supervising and implementing them.

The daily work of the leading group of the whole country is the responsibility of the State Economic and Trade Commission. The relevant departments should submit a joint discussion on major issues to the State Council's reform of state-owned enterprises through cooperation and coordination.

The provincial, regional and municipal setups are headed by the economic and Trade Commission (ECE), the economic and Trade Commission (hereinafter referred to as the Commission), the relevant departments, and the provincial, regional and municipal coordination teams attended by the provincial, district and municipal people's Congress law and order committees and the higher people's courts.

Its main responsibilities are: organizing and coordinating the merger and bankruptcy of enterprises in the pilot cities of the region and the re employment of workers; and examining the pilot work plan of enterprises annexation and bankruptcy and the re employment of workers, and formulating the plan for the merger, bankruptcy and re employment of enterprises in this province, regions and cities.

The pilot cities were set up by the Municipal Economic and Trade Commission (Group), the physical Reform Commission, the Finance Bureau, the people's Bank of China, the branches of the creditor's Bank, the labor bureau, the Land Bureau and the state owned Assets Management Bureau.

Its main duties are: organizing and coordinating the merger and entry into bankruptcy proceedings and the re employment of employees; formulating the plan of enterprise annexation and bankruptcy and re employment of workers in the city; responsible for formulating enterprise bankruptcy plans; organizing the implementation of merger and re employment of employees; and supervising, investigating and correcting non-standard practices.

Two. The formulation and approval of the work plan for merger and bankruptcy and re employment of employees.

On the basis of in-depth investigation and study and fully listening to the opinions of major creditor banks, the coordination group of all pilot cities should put forward a list of enterprises that merge, bankrupt and solve difficulties. "China and provincial enterprises should be put forward by the competent departments, the State Economic and Trade Commission and the local economic and Trade Commission".

Each creditor bank head office or head office authorizes local branches to participate in the compilation of the plan, and the financial departments and banks shall examine and verify the bank's bad debts reserve for the merger and bankruptcy and the re employment of workers.

The pilot city "enterprise merger bankruptcy and staff reemployment work plan" is compiled once a year.

The pilot cities should report to the provincial and District Coordination teams of the next year's enterprise merger and bankruptcy and workers' re employment plan by the end of November, and report to the national leading group before the end of December by examining the coordination of the provincial and regional coordination teams.

On the basis of examining the provincial, regional and municipal plan of enterprise merger and bankruptcy and re employment of workers and workers, the national leading group has made a comprehensive study of the plan for the annexation and bankruptcy of the whole country and the re employment of workers, which was submitted to the joint conference of the State Council on the reform of state-owned enterprises, which should be issued before the end of February.

After the completion of the national enterprise merger and bankruptcy and the re employment plan for workers and staff members, the national leading group, together with the relevant departments and provincial, district and municipal people's governments, is responsible for checking and implementing the implementation of each pilot city plan.

After the approval of the work plan for enterprise merger and bankruptcy and re employment of workers in each pilot city, the scale of approved projects can not be broken through in implementation. If the plan is to be adjusted within the planned scale, the provincial, regional and municipal coordination teams will be examined and submitted to the national leadership group for approval.

The coordination teams of all provinces, regions, cities, and pilot cities should report to the National Leading Group on the implementation of the work plan for merger, bankruptcy and re employment of workers every quarter. The head office of the people's Bank of China shall report to the joint venture meeting of the State Council on the Quarterly basis the verification of bad debts and bad debts.

Three. Formulation of enterprise bankruptcy plans

The pilot cities should be based on the national enterprise merger and bankruptcy and the re employment plan for workers and workers, and the departments in charge of the bankrupt enterprises shall be responsible for providing the materials for the enterprise bankruptcy plans to the pilot city coordination group.

Its main contents include: general situation of enterprises, accounting statements and loss descriptions, creditor's rights, debt status, asset disposal plan, staff placement channels and cost standards, and so on.

After making the enterprise bankruptcy plan, the pilot city coordination group can enter the bankruptcy procedure and report to the provincial, district and municipal coordination group for the record.

If the main creditor bank disagrees with the enterprise bankruptcy plan, it must be submitted to the provincial, regional and municipal coordination group for decision, and the case will be reported to the national leading group for record.

The coordination of the provincial, regional and municipal coordination groups still can not form a resolution, and it is reported to the leading group of the whole country.

Four. Qualification of assets appraisal institutions and disposal of bankruptcy assets

Before the disposal of the enterprise's bankruptcy property, the asset appraisal institution, which is certified by the state owned assets management administrative department of the State Council, shall be entrusted by the bankruptcy liquidation team, and the evaluation result shall be confirmed by the administrative department of state assets administration.

Among them, the land use right that has been obtained in the way of allocation or the valuation of the right to the use of land that involves changing the terms of the contract must be assessed by the asset appraisal institution with the ability to evaluate the land, and the land administrative department will confirm the result of the assessment and incorporate it into the overall asset appraisal result.

Asset appraisal and land price evaluation should try to reduce the cost of assessment and not to repeat the assessment fees.

Those who confirm the mistake must bear the corresponding administrative and financial responsibilities.

The bankrupt property of an enterprise shall be determined on the basis of the price recognized by the appraisal, and the base price shall be determined according to the relevant provisions of the state, which shall be mainly auctioned and pferred according to relevant laws and regulations.

The pfer price is determined by the city.

Five, properly set up workers in bankrupt enterprises.

The people's governments of various pilot cities should actively promote the experience of Shanghai's re employment project, and establish a re employment service center from top to bottom in the light of the reform of labor employment and social security system and local specific conditions, actively explore employment paths, care for the workers and staff members of bankrupt enterprises, properly place workers in bankrupt enterprises and maintain social stability.

The cost of settling the staff and workers of bankrupt enterprises is appropriated from the pfer of the right to the use of the land acquired by the bankrupt enterprise according to law.

If a bankrupt enterprise takes the land use right as collateral, its pfer proceeds shall also be used for resettlement of workers first, and the insufficient part shall be paid in turn from the disposal of unsecured property and mortgaged property.

If the resettlement staff of the bankrupt enterprise's property auction is still insufficient, it shall be borne by the people's government at the same level in accordance with the subordinate relationship of the enterprise.

The staff resettlement fee will be allocated to the re employment service center, and it will be used as a whole.

The standard of resettlement fee is calculated in accordance with 3 times the average wage income of the employees of the pilot cities in the pilot cities where the bankrupt enterprises are located. The people's Government of the pilot cities strictly grasps according to the actual conditions of the locals and must not break through at will.

Temporary workers who have not yet been employed will be given the basic living expenses from the re employment service center and will be discontinued after re employment.

Self employment can be paid in a lump sum, and the standard is not 3 times higher than the average wage income of the workers in the pilot cities.

The retirement and medical expenses of retired workers in bankrupt enterprises are managed by local social endowment insurance institutions and medical insurance institutions.

If a bankrupt enterprise takes part in social endowment insurance and medical institution funds, its retirement expenses and medical expenses shall be paid by the pilot social pension and medical insurance institutions in the pilot cities from the social insurance for the old-age insurance and the medical insurance fund.

Those who did not participate in the social co ordination of old age, medical insurance funds or social insurance for the old-age insurance and medical insurance funds should be paid in the proceeds from the pfer of the right to the use of the land of the enterprises. If the proceeds from the disposal of land use rights are insufficient to pay, the less part will be paid in turn from the disposal of unsecured property and mortgaged property.

After the bankrupt enterprise enters the bankruptcy procedure, the living expenses of the workers shall be paid from the bankruptcy liquidation expenses, and the specific payment method shall be implemented according to the Interim Provisions of the Ministry of Finance on the financial problems related to the trial and bankruptcy of state-owned enterprises (1996 [226]).

The proceeds from the disposal of property of a bankrupt enterprise shall be paid off according to the provisions of the bankruptcy law after the expenses of resettlement of employees are paid.

Six, simplify the verification procedures of foolish and bad debts.

Due to the implementation of the "national enterprise merger and bankruptcy and the re employment of workers" plan, the bank loan principal and interest losses need to be written off the reserve for bad loans and bad debts. The head office of the creditor banks shall, within the total scale of the bank's bad debts reserve, be approved and written off by the head office of the creditor banks in accordance with the commercial bank law of the People's Republic of China and the relevant provisions.

The specific measures are in accordance with the Ministry of finance's revision of the national professional banks.