What Is Asset Reconstruction?

Asset reorganization refers to the process of recombining, adjusting, and configuring the distribution status of corporate assets, or the reconfiguration of the rights on corporate assets, by the owners and controllers of corporate assets and external economic entities. process.

Asset restructuring

assets

The concept of "asset reorganization" currently used in China has long been agreed to become a general term that blurs boundaries and expresses all major non-operational or abnormal changes with listed companies. In the practice of asset reorganization of listed companies, the meaning of "assets" generally refers to all resources that can be used and bring benefits to the enterprise, including not only the economic resources of the enterprise, but also human resources and organizational resources. The generalization of the concept of assets has also led to the generalization of the concept of asset reorganization.

Although many laws and regulations and administrative rules and regulations concerning asset reorganization have recently been issued, none of them have involved the concept of asset reorganization, and so far there is no clear definition of asset reorganization. Although in the practice of reorganization, asset reorganization and its contents are regulated to a certain degree from different angles, the names used are still extremely inconsistent and random, and the enumeration methods are not thorough or even a little confusing. Both have opened up a lot for the generalization of the concept of asset reorganization.

For the reliability of data sources and statistical convenience, this article is based on the conventions of China's securities market and mainly refers to "(

In my country

Asset reorganization under the conditions of a socialist market economy should follow the following principles:

1) Asset reorganization should be based on the connection of property rights. Because the asset reorganization based on the selection of property rights is solid, it avoids excessive negotiation costs and moral hazards when restructuring assets in the form of contracts. At the same time, real property rights transfer can create conditions for the property rights of new enterprises to be clear The new enterprise has complete property rights.

2) Asset restructuring should be based on market requirements. During the reorganization of state-owned assets, excessive government intervention must be avoided. Instead, capital owners and business operators must operate in accordance with the market's signals and in accordance with the principle of capital chasing efficiency.

3) State-owned assets restructuring must have a clear industrial policy. China is a developing country. In the industrial policy, it is an important policy measure to change the state of the country's industrial structure through the adjustment of the stock of assets. Therefore, the state must formulate corresponding policies to ensure that the results of asset restructuring activities meet the needs of the country's industrial policies.

4) Asset reorganization should maintain the unity of competition and monopoly. Asset reorganization will inevitably lead to the emergence of large enterprises and large groups, which will produce economies of scale, reduce the production costs of enterprises, and improve the market competitiveness of enterprises. However, this may cause monopoly, and the vitality of the market economy is brought about by competition mechanisms. Therefore, in the process of asset reorganization, a large-scale enterprise with a certain size must be formed, and at the same time, a monopoly enterprise group must be avoided.

5) Do not seek a once and for all solution for asset reorganization. Because the current market environment is changing very quickly, the industrial structure that looks reasonable today will become unreasonable within a short time. At the same time, from the perspective of the main body of the asset reorganization, it may not be permanent. It is now the target enterprise to be acquired. It may become the acquirer after some time to acquire other enterprises.

In a social economy with a sound market mechanism, a complete legal system, and a good social security environment, an enterprise's asset restructuring can strengthen its own strength, achieve optimal allocation of social resources, and improve economic operation efficiency.

(1) Compared with the enterprise's own accumulation, corporate mergers and acquisitions can quickly achieve production concentration and business scale in a short period of time;

(2) It is beneficial to reduce excessive competition in the same product industry and improve the efficiency of industrial organization;

(3) Compared with the establishment of a new enterprise, mergers and acquisitions can reduce capital expenditures;

(4) It is beneficial to adjust the product structure, strengthen the advantages and eliminate the disadvantaged products, strengthen the formation of pillar industries, and promote the adjustment of the product structure;

(5) The optimization of corporate capital structure can be achieved. Under the guidance of national industrial policies, the strategic reorganization of state-owned assets can be achieved, making the industrial distribution of state-owned capital more reasonable.

The reorganization of corporate assets and liabilities occurs at the corporate level and can be reorganized according to the authorization of the board of directors or the shareholders' general meeting; the reorganization of corporate equity due to changes in the share holders or the increase in share capital generally requires the relevant competent authority (Such as the China Securities Regulatory Commission and the stock exchange) for review or approval, those involving state-owned equity also need to be approved by the state financial department.