Ten Years Of Entanglement In Guangdong's Clothing Hub: A Ruling Not Yet Implemented

Three Shen building's administrative transfer of Changsheng Group of state-owned enterprises, private enterprises three Shen industrial complaints failed

In the north of the Guangdong bus terminal, next to Guangzhou Railway Station, west square. clothing The wholesale city two building (also known as the three Shen mansion) has gathered the wholesalers of the middle and low grade clothing in the world. Because of the huge volume of passenger flow and convenient traffic, it plays a pivotal role in the whole country's clothing wholesale.

"This is a gold building, and it is also a building." Li Xiaowei, lawyer of Beijing Zhong Rui (Guangzhou) law firm, said.

Seventeen years ago, the three Shen Industrial Co., Ltd. of Guangdong province and the second guest house of Guangdong military region built three Shen mansion in cooperation. After several times of change, the ownership and management right of the three Shen building is still in the judicial dispute. "Guangdong Changsheng enterprise group has illegally occupied three building buildings in recent ten years since 2003. It has collected nearly one billion yuan for the tenant admission fee, rent, management fee and parking lot parking fee." Three Shen industrial chairman Zhang Sen said. "During the ten years, the three Shen companies suffered significant property damage and almost went bankrupt."

According to Changsheng Group comprehensive department, the ownership of the three Shen mansion is handed over to the Guangdong military region. Changsheng Group reclaims the operation right of the building because the three Shen industrial violates the lease contract first.

"This kind of administrative transfer completely ignores the rights and interests of the subordinate enterprises, nor does it show respect for the partners and cooperation contracts." Zhang Sen said, "when the company was founded, its core asset is the three Shen building. The company has invested three Shen building as an asset to have 20% stake in the three Shen company."

Zhang Sen also said that in 1999, the cooperation agreement between the three Shen company and the station west company was exclusive, and the lease contract was void before the contract came into force. It is groundless for the station west to charge high rent and late fees to the three companies.

An unexecuted verdict

"This is a ruling issued by the intermediate people's Court of Qingyuan in 2010, but until now, it has not been able to carry out the ruling." In August 7, 2012, Zhang Sen held a court ruling in 2010 February.

This is a dispute that lasted for ten years. As early as 1998, the three Shen company was dragged into a debt dispute because of the crime of fraud by its contractor Weng Baoming, and it needed to pay 35 million yuan joint and several liability for compensation to Qingyuan overseas Chinese travel and remittance service company (hereinafter referred to as overseas Chinese remittance company).

At the end of 2001, the Qingyuan intermediate people's Court seized and withheld the rental of three Shen buildings under three companies. In May 2002, the Qingyuan intermediate people's court decided to deliver the three Shen building with the right of operation of the three Shen company to the overseas Chinese remittance company for 17 years and repay the debt principal and interest of the overseas remittance company for about 35 million yuan in 17 years.

In the execution of the ruling, the Changsheng Group's involvement made the debt dispute mixed. With its ownership of the three Shen building, the Changsheng Group raised the objection to the execution of the ruling of the Qingyuan intermediate people's Court of the Guangdong provincial high court.

At the end of 2002, Qingyuan overseas remittance company reached a settlement with Changsheng Group. The Changsheng Group helped the three Shen company repay debts to the overseas remittance company, the repayment period was ten years, and the overseas remittance company handed over the three Shing Building's operation right to Changsheng Group. The handover time was December 10, 2002. The Changsheng Group took the first floor and the basement of the three Shen building as collateral.

Li Xiaowei, a lawyer at Zhong Rui law firm, said that the debt side of the overseas remittance company was three Shen company, which had nothing to do with the Changsheng Group. The settlement did not inform the three Shen company. Chang Sheng group had no right to assist the three Shen company to repay its debts without authorization, nor had the right to operate the three Shen building.

"However, according to the settlement, the Changsheng Group, which has no investment in the three Shen mansion, has obtained three of the building management rights. Now, the three Shen company has paid back the arrears of 35 million yuan of the overseas Chinese remittance company, and the creditor's overseas remittance company agreed to hand over the management rights of the three Shen building to the three Shen company. Zhang Sen said.

Since then, the three Shen company appealed against the ruling of reconciliation, requested the Qingyuan intermediate people's court to correct the execution error, and asked the Changsheng Group to return the three Shen building management right to the three Shen company and compensate the three Shen company for over 576 million years of economic losses.

In February 2010, the Qingyuan intermediate people's court revoked the settlement ruling reached by the Changsheng Group and the overseas Chinese remittance company. The Guangdong Provincial High Court also carried out the supervision over the case in April 2010.

"We have been in line with the mediation work of the court, but the right to operate the three Shen mansion is lawfully obtained, and three of the compensation company claims $576 million is not enough." Changsheng Group Comprehensive Department official said.

The reporter learned from the Qingyuan intermediate people's court that the three Shen company filed an application to request the Changsheng Group to refuse to return the three Shinto building management rights to the three Shen company. The Qingyuan intermediate people's court started in December 2010, and five times informed the three Shen companies, Changsheng company and other relevant parties to appear in court mediation, all failed.

According to the judge who understands the case in the Qingyuan intermediate people's court, Changsheng Group has two reasons for refusing to enforce the court ruling. One is that the group is an enterprise of the provincial SASAC, and it has no right to reconcile with the three Shen company. The second is that the Changsheng Group refuses to acknowledge that the three Shen company has the right to invest and operate in three Shing Building.

In response, the judge said that the court ruling is temporarily difficult to implement, and the Qingyuan intermediate people's court will try to supervise and coordinate the case with the case.

Three Shen mansion, past and present

Three the original building is the second guest house of the Guangdong military region (two strokes), covering an area of 14000 square meters. In 1995, the three Shen company cooperation with the two recruit, invested nearly 100 million yuan from the three Shen company to demolishing old buildings and built new ones, and built two West Station Square in two recruit hospitals.

In 1997, the three Shen company signed a lease contract with two strokes, stipulating that the three company invested 70 million yuan to install and decorate the building two, thus obtaining the lease management right of the two building for twenty-one years, the annual rent of the first two rental years is 5 million yuan, and the rent paid for the previous lease year is the base of the annual rent, increasing by 5% every year.

At the beginning of 1998, three Shen companies signed contracts with two strokes to buy in a way, paying two yuan for 40 million yuan at one time and gaining 50 years' use rights for building two.

In 1998, the Central Committee of the Communist Party of China, the State Council and the Central Military Commission jointly promulgated the implementation plan of the army and the armed police no longer engaged in business activities. The Guangdong military region needs to divest its operating assets and hand over to the local governments. The two move is to change the enterprise name of Guangdong the Great Wall Group West Square Industrial Development Co., Ltd. (hereinafter referred to as the west station company), and is assigned to the Guangdong the Great Wall Construction Group Co., Ltd. (hereinafter referred to as the the Great Wall group) directly under the Guangdong provincial military region. At the end of 1998, the group was decoupled from the army and transferred from the army to the Guangdong provincial government.

At the end of 1999, after the approval of the the Great Wall group, the station west company once again changed the way of cooperation with the three Shen company. According to the agreement, three of the company will pay 10 million yuan for the west station company, and the station west company shares three of the company's assets with the value of building two. The company will get a 20% stake. According to the agreement at that time, after the three Shen company changed the registration of industrial and commercial registration and completed the equity reorganization, the station west company, which owns the property of two building, will change the property owner of two building to three Shen company.

Three Shen building is operated by the new three Shen company after the participation of the station west company, and the income is divided by shares. On this basis, the three Shen company set up the management system of the board of directors of the company, the board of directors has a total of nine members, and three from the station west company.

"However, according to the settlement, the Changsheng Group, which has no investment in the three Shen mansion, has obtained three of the building management rights. Now, the claim of 35 million yuan of the overseas remittance company has been paid off, and the creditor's overseas remittance company has agreed to return the operation power of the three Shen building to the three Shen company. Zhang Sen said.

"After the registration of the trade and Industry Bureau has changed the registration, the three Shen company has actually fulfilled the contract, so that the three Shen company enjoys the legal and undisputed operation right of the three Shen building." Zhang Sen said.

Zhang Sen said that although the change of the shareholding of the three Shen company was completed on schedule, the station west square had not been able to transfer the property rights of Building No. two West to three.

Ten years of struggle for clothing hub: an un written ruling

Three the ownership of Shen mansion has been changed for several times and is now under the banner of Guangdong Guangsheng conglomerate. The station west company has not been able to fulfil its promise to join the three Shen company.

According to the insiders of the Changsheng Group, at the end of 1998, the original two strokes were renamed the the Great Wall Square West Square Industrial Development Co., and transferred to the government of Guangdong. However, the ownership of the three core building of its core assets has not yet been transferred to the name of the company.

Since then, the the Great Wall group transformed into a state-owned enterprise in Guangdong has undergone a series of changes. In December 1999, the Guangdong provincial government set up a state-owned asset management company limited (Guangsheng assets), in order to operate Guangdong province's armed forces, the armed police force and the political and legal organs to hand over the enterprises, the original Guangdong Electronics Industry Corporation and its subordinate enterprises, the non-ferrous metal enterprises under the central Guangdong Province, and the assets of the Rural Telephone Bureau of Guangdong province.

The emergence of Guangsheng assets has completely changed the fate of the three Shen building and the three Shen company. In 2001, Guangsheng assets established a first grade subsidiary company, Changsheng Enterprise Group Co., Ltd. to integrate assets such as construction, installation, real estate and property management of Guangsheng asset, while the Great Wall group became a shell company belonging to Changsheng Group.

In September 2001, the station west company and more than 10 other enterprises were also included in Changsheng Group. The assets of Changsheng Group are also included, including the ownership of assets of all subordinate enterprises. In 2002, the property rights of the three Shen mansion were transferred directly to the headquarters of the Logistics Department of the Guangdong military region, and became one of the core assets of Changsheng Group under the name of Changsheng Group, the parent company of the station west company. The station west company, which originally owns three Shen building assets, has become a management company.

"Because of the signing of the cooperation agreement between Chengxi company and the three Shen company, the property right of the three Shen building is still in the military area. If the property rights asset is invested, the General Logistics Department of the military region must be approved, while the station west company is only approved by its parent company the Great Wall group, so the agreement is invalid." Changsheng Group said.

This person said that Chang Sheng group only admitted that the leasing contract signed by the former station west company and the three Shen company was valid. "But then the three Shen company broke the contract, and the station west company has terminated the lease contract." The source said.

In July 2000, the station west sent a written notice to the three Shen company, and requested the three Shen company to pay the arrears of rent and the late fee of 60 million yuan in the past three years based on the lease agreement signed between the two sides in 1997. Among them, the rent for the first two years is 5 million yuan, and the arrears are 1% per day. In August 1st of that year, the station west company, which did not receive 60 million yuan from the three Shen company, unilaterally terminated the lease agreement between the two parties, and resumed the right to operate.

Contentious contract

"This kind of administrative transfer completely ignores the rights and interests of the subordinate enterprises, nor does it show respect for the partners and cooperation contracts." Zhang Sen said, "when the company was established, its core asset was the three Shen building. The company invested 20% of its three stake in the three Shen building as an asset. After signing the contract, we fulfilled the contract. The Guangdong SASAC has emptied its investment assets of the three venture companies through the reorganization of assets."

Li Xiaowei, lawyer of Beijing Zhong Rui law firm, believes that if an enterprise carries out asset restructuring through marketization, it should investigate and clean up all the restructured assets, notify all relevant parties involved in the reorganization of assets, and properly handle the interests of related parties.

But according to Zhang Sen, in the process of enterprise transformation, it has been directly transferred to the three Shen building property rights to the company's parent company Guangsheng group. Until the transfer was completed, Changsheng Group intervened in the dispute between the three Shen company and the overseas remittance company.

Zhang Sen said that in 1999, the cooperation agreement between the three Shen company and the station west company was exclusive, and the lease contract was void before the contract came into force. It is groundless for the station west to charge high rent and late fees to the three companies. In 2001, the station west company completed the change of business information with the three Shen company. In those days, the station west company also received the first dividend payment of three companies after they were put into operation.

"This means that the company has affirmed the cooperation agreement and has partially fulfilled its responsibilities. The lease agreement has been automatically invalidated." Zhang Sen said.

The station west square has successfully established the Western garment and clothing city by virtue of its proximity to the railway station and the bus station. It is currently one of the five famous clothing markets in Liuhua mineral clothing professional market park. There are seven stories on the two floor of Zhexi square, with a total area of 20256 square meters. The 1-3 floor is a shop stalls, a total of 523, 4-7 floors for office buildings, 227, occupying 100%.

The reporter visited three Shen tenant tenants, for example, taking the 8775 stalls of the three Shen mansion as an example. The 42 square meters of the archives are rentals of thirty thousand yuan per month, the total rental income is 12 million 857 thousand and 100 yuan per month, and so on. And the value of the three Shen building is increased by tens of times.

"Changsheng Group is enjoying its success. The investment of three companies in the early stage of 1 billion investment has been lost." Zhang Sen said.

Public information shows that Chang Sheng group is a subsidiary of Guangsheng asset. At present, Changsheng Group owns property in addition to west square in Guangzhou and its surrounding areas, including about 100000 square meters, such as the Great Wall Hotel, Great Wall Building and Changping industrial base in Dongguan. Standing West Plaza is an important source of revenue for Chang Sheng group, of which two building three Shen mansion is the core main building.

According to the 2011 credit rating report of joint credit rating Co., Ltd., the proportion of construction real estate in the business composition of Guangsheng assets increased year by year, from 13.83% in 2007 to 16.81%. However, as the first building asset platform of Guangsheng assets, the assets of Changsheng Group were still mainly transferred to assets ten years ago, and few new projects were developed after that.