What are the conditions for private enterprises to participate in the mixed ownership reform of stat

Mondo Finance Updated on 2024-02-28

The mixed-ownership reform of state-owned enterprises refers to the combination of state-owned enterprises with non-state-owned capital such as private or foreign capital, and the introduction of external capital, technology and management experience to enhance the competitiveness and efficiency of state-owned enterprises.

The main reasons for the implementation of the mixed reform of state-owned enterprises are as follows:

1.Enhance market competitiveness: SOEs often face problems such as monopoly position and lack of innovation ability in the market, which makes it difficult for them to adapt to market changes and development needs. Through the introduction of non-state-owned capital and external management and technology, the market competitiveness and efficiency level of enterprises can be improved;

2.Promote economic restructuring: State-owned enterprises occupy an important position in the economy, but at the same time, there are problems such as overcapacity and low efficiency. Through mixed reform, state-owned enterprises can be liberated from the inefficient model of over-reliance on subsidies and resource allocation, and promote the optimization and upgrading of industrial structure;

3.Increasing the value of state-owned assets: SOEs have a large amount of state-owned assets, but due to institutional constraints, the utilization of these assets is not efficient. Through the reform of mixed ownership, more social capital can be allowed to participate in the management and operation of state-owned enterprises, so as to better realize the preservation and appreciation of state-owned assets;

4.Supporting economic development: State-owned enterprises (SOEs) are an important pillar of the country's economy and an important guarantee of employment and social stability. Through mixed reform, the market vitality of state-owned enterprises can be stimulated, and economic growth and social development can be promoted.

Private enterprises need to meet the following conditions to participate in the mixed reform of state-owned enterprises:

1.It has a good business reputation and management ability, and can bring new management concepts, technology and market resources to state-owned enterprises.

2.It has certain financial strength and ability, and can provide necessary financial support and technical investment in the process of state-owned enterprise reform.

3.Have a clear profit target and business plan, and be able to work with the state-owned enterprise to develop a reasonable profit distribution mechanism to ensure that the interests of both parties are balanced.

4.In the mixed-ownership reform of state-owned enterprises, private enterprises should maintain their independence and autonomy, and at the same time respect the management system and decision-making process of state-owned enterprises, so as to avoid unnecessary interference and damage to state-owned enterprises.

5. Must be a legal business: no illegal business, illegal fundraising, no P2P, no virtual currency business, no business that is harmful to the public.

6. Must obey the superior: If there is a problem in the company's operation, including financial problems, tax problems, business defaults, financing problems, loan problems, etc., which may damage the superior shareholders, it is necessary to communicate with the superior company in a timely manner to deal with the solution, because all the problems caused by the concealment are borne by the person in charge of the enterprise itself.

7. It must be the payment of management fees: the annual management fees must be paid to the superior shareholders in full and in a timely manner, and there shall be no arrears.

8. It must be a mixed reform cooperation on an annual basis, and if you need to cooperate for many years, you need to negotiate separately.

There are three main ways to promote the reform of mixed ownership:

The first is to introduce non-state-owned enterprises to participate in the reform of state-owned enterprises; There are no audit requirements for private enterprises in the mixed-ownership reform of central enterprises and state-owned enterprises.

The second is to introduce non-state-owned capital to participate in the reform of state-owned enterprises, and state-owned capital to invest in operating companies to serve non-state-owned enterprises with great development potential and good growth.

The third is to explore the implementation of employee stock ownership in mixed-ownership enterprises. Employee stock ownership mainly adopts the method of capital increase and share expansion.

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