Decree No.50 "Decision of the State Council on Amending Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People" is the decision of the State Council on Amending Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People.
Basic introduction Chinese name: People's Republic of China (PRC) Decree No.50 * * the State Council, release date:1February 24, 990, implementation date:1February 24, 990, document number: National Decree No.50? Issued by: the State Council, full text, issued by Decree No.50 of the State Council of People's Republic of China (PRC). The Decision of the State Council Municipality on Amending Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People is hereby promulgated and shall come into force as of the date of promulgation. The State Council's Decision on Amending Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People1On February 24th, 990, the State Council decided to amend Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People as follows: two paragraphs are added to Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People, such as the third paragraph and the fourth paragraph: the lease operation contract does not stipulate the dispute settlement method, However, if the parties reach a written agreement to apply to the administrative department for industry and commerce for arbitration after the conclusion of the contract or when a dispute arises, the administrative department for industry and commerce shall accept the arbitration case according to law. If one party fails to execute the legally effective conciliation statement or award within the time limit, the other party may apply to the people's court for compulsory execution. This decision shall come into force as of the date of promulgation. Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People (Amendment) 1 988 May 18 Adopted at the Fifth Executive Meeting of the State Council19881promulgated by People's Republic of China (PRC) Order No.2 on June 5, 988, since June1July 988/. Decree No.50 of the State Council of the People's Republic of China Decision of the State Council on Amending Article 22 of the Provisional Regulations on Lease Operation of Small Industrial Enterprises Owned by the Whole People Chapter I Revision of General Provisions Article 1 These Regulations are formulated in order to improve the lease operation of enterprises, enhance their vitality and increase their economic benefits. Article 2 These Regulations shall apply to small industrial enterprises owned by the whole people (hereinafter referred to as enterprises). The standards for enterprise division shall be determined in accordance with the relevant provisions of the state. Article 3 The term "lease operation" as mentioned in these Regulations refers to the separation of ownership and management rights without changing the nature of enterprises owned by the whole people. The state-authorized units hand over the enterprises to the lessee for operation within a limited period of time, and the lessee pays the lessor the rent and operates the enterprises independently according to the contract. Article 4 The interests of the state, enterprises, employees and lessees must be taken into account in the implementation of lease operation. Article 5 The lessor and lessee must implement the policies, laws and regulations of the state and accept the supervision of the relevant departments of the people. Chapter II Lessor and Lessee Article 6 The State authorizes the department entrusted by the people where the enterprise is located to be the lessor to exercise the lease right of the enterprise on behalf of the State. Article 7 Where the provisions of these Regulations are met, the lessee is the lessee. The lessee may lease a commercial enterprise in the following forms: (1) 1 individual leasing commercial enterprise (hereinafter referred to as individual leasing); (2) A partnership of two to five persons (hereinafter referred to as partnership lease); (3) All employees of the enterprise lease the enterprise (hereinafter referred to as full lease); (4) An enterprise leases another enterprise (hereinafter referred to as enterprise leasing); (five) other forms of leasing business permitted by the state. Article 8 The lease term is 3 to 5 years. The lessee shall not sublease the enterprise. Article 9 The lessee refers to the individual of the leased enterprise, or the factory director determined by partnership lease or full lease, or the factory director sent by the leased enterprise. The lessee is the legal representative of the enterprise during the lease term, exercising the authority of the factory director and being fully responsible for the enterprise. Tenth lease operators must meet the requirements of the factory director stipulated by the state. Article 11 The lessee shall provide the following guarantees: (1) If an individual rents a lease, he shall provide personal property (including a certain proportion of cash) as a guarantee, and the cash shall be deposited in the bank for special purposes, and must be guaranteed by at least two guarantors with corresponding property; (2) members of the partnership or full-time lessees must provide personal property (including a certain proportion of cash) as a guarantee, and the cash must be deposited in the bank for special purposes; (3) If an enterprise leases, it must deposit a certain proportion of the retained funds in the leased enterprise assets as a guarantee. After being deposited in the bank, it shall not be used for other purposes except that it can be used as working capital with the consent of the lessor. The specific proportion of the secured property in the assets of the leasing enterprise mentioned in the preceding paragraph shall be determined by the people where the lessor is located according to the specific circumstances. Chapter III Bidding for Lease Article 12 Before leasing an enterprise, the lessor must verify the assets, clear up the creditor's rights and debts, evaluate the assets (including tangible assets and intangible assets) and determine the pre-tender price according to the profit rate of the industry and the enterprise. Article 13 The steps for the lessor to select the lessee are as follows: (1) Publish a tender announcement, register the tender, examine the qualifications of the tender registrant and determine the bidder; (2) Organize the bidders to visit the factory, and the bidders shall prepare the tender and put forward the plan for managing the factory; (three) organize the public defense of the bidders, make a comprehensive evaluation of the bidders, solicit the opinions of the workers' congress (the workers' congress), and determine the winning bidder. Fourteenth enterprises and institutions of cadres or workers in accordance with the relevant provisions of the state to participate in the bidding of leasing enterprises, their units should allow and support the successful bidder to work in leasing enterprises. Article 15 After the lessor selects the lessee, the lessor and the lessee must conclude a lease operation contract, and go through the registration formalities for the change of legal person in accordance with the relevant provisions of the state. Article 16 If the lessor agrees to continue the lease upon the expiration of the lease term, it must re-sign the contract and go through the registration formalities for the change of legal person in accordance with the relevant provisions of the state. Six months before the expiration of the lease, the lessor and the lessee shall make it clear to each other whether to continue the lease relationship. Chapter IV Lease Operation Contract Article 17 A lease operation contract shall be in written form. Both parties to a lease contract must follow the principles of voluntariness, equality and consultation. Lease contracts concluded in accordance with these regulations are legally binding. Article 18 A lease operation contract shall have the following clauses: (1) Subject matter; (two) the effective conditions and effective period of the lease contract; (3) The overall business objectives and annual business objectives during the lease period; (four) the amount of rent, delivery period and calculation method; (5) The income of the lessee and the distribution ratio of various funds of the enterprise; (six) the disposal of creditor's rights and debts and residual losses before the lease of the enterprise; (seven) the rights and obligations of both parties to the lease; (eight) the form and requirements of the guarantee; (nine) the alteration and dissolution of the contract and the settlement of contract disputes; (10) Liability for breach of contract; (eleven) the return and acceptance of assets after the expiration of the lease; (twelve) other terms agreed by both parties to the lease. Nineteenth without the consent of the consultation, no party may arbitrarily change or terminate the lease contract. Article 20 If the lease operation contract cannot be performed under any of the following circumstances, it is allowed to change or terminate the contract: (1) It is caused by force majeure or an external cause that cannot be prevented although one party has no fault; (two) due to poor management of the lessee can not meet the annual business objectives stipulated in the contract; (3) Due to one party's default; (four) due to other changes stipulated in the contract or the termination conditions of the contract. Article 21 If one party to a lease operation contract requests to modify or terminate the contract, it shall promptly notify the other party in writing. The original contract is still valid until both parties reach a written agreement. After receiving the written notice from the other party requesting to change or dissolve the lease contract, one party shall give a written reply within 15 days from the date of receiving the written notice. Failure to reply within the time limit shall be regarded as breach of contract. Article 22 Disputes arising between the parties to a lease operation contract shall be settled through consultation. If negotiation fails, it may apply to the administrative department for industry and commerce for mediation or arbitration according to the contract. If any party to the lease contract refuses to accept the arbitration decision of the arbitration organ, it may apply to the arbitration organ at the next higher level for reconsideration within 10 days from the date of receiving the arbitration decision. The decision made by the arbitration institution at the next higher level is final. An arbitration decision that fails to apply for reconsideration within the time limit and has taken legal effect is final. Either party to the lease operation contract may bring a lawsuit directly to the people's court according to the provisions of the lease operation contract. If the lease contract does not stipulate the dispute settlement method, but the parties reach a written agreement and apply to the administrative department for industry and commerce for arbitration after the conclusion of the contract or in case of dispute, the administrative department for industry and commerce shall accept the arbitration case according to law. If one party fails to execute the legally effective conciliation statement or award within the time limit, the other party may apply to the people's court for compulsory execution. Chapter V Rights and Obligations Article 23 The rights of the lessor: (1) Supervise the lessee to abide by state policies, laws and regulations and complete the plans issued by the state; (two) to supervise the property of the leasing enterprise from being damaged; (3) collecting the rent paid by the lessee in accordance with the provisions of the contract. Article 24 Obligations of the lessor: (1) To guarantee the lessee's autonomy in business operation in accordance with the provisions of the contract and safeguard the preferential treatment enjoyed by the enterprise before leasing according to law; (2) Providing necessary services for the production and development of leasing enterprises; (three) according to the requirements of the lessee, in conjunction with the relevant departments to assist the leasing enterprises to solve the difficulties in business activities. Article 25 the rights of the lessee: (1) to enjoy the rights of the factory director stipulated by the state; (two) the appointment and removal of factory level administrative deputy, and report to the relevant departments for the record; (3) Deciding on the full-time staffing of the enterprise; (four) according to the market demand, adjust the business direction of the enterprise, and go through the formalities of change registration in accordance with the relevant provisions of the state. Article 26 the obligations of the lessee: (1) to perform the duties of the factory director as stipulated by the state; (two) the implementation of the price policy, safeguard the interests of users and consumers; (3) safeguarding the legitimate rights and interests of workers; (four) to maintain the assets of the leasing enterprise, ensure the equipment is in good condition, and handle the enterprise property insurance; (5) Pay the rent on schedule. Article 26 The lessee, as the representative of the lessee, shall enjoy and perform the rights and obligations stipulated in Articles 25 and 26 of these Regulations. Chapter VI Income Distribution and Disposal of Creditor's Rights and Debts Article 28 The lessor may, according to the technical transformation task of the enterprise, hand over all or part of the rent paid by the lessee to the enterprise for production development and technical transformation, or pay off the debts and residual losses of the enterprise before leasing. Article 29 The profits realized by a leasing enterprise after paying taxes according to law are divided into four parts: lessee's income (including rent), enterprise production development fund, employee collective welfare fund and employee incentive fund, which are distributed according to the proportion stipulated in the contract. Thirtieth leasing enterprises can independently determine the system, form and method of internal distribution within the prescribed total wages (including incentive funds), and pay taxes according to law. Article 31 Creditor's rights, debts and remaining losses before the lease operation of an enterprise shall be handled in accordance with the provisions of the lease contract. Chapter VII Lease Income Article 32 From the effective date of the lease operation contract, the wages and bonuses of the lessee and the partnership members shall be stopped and the living expenses shall be paid in advance. The income of the tenant operator and the partnership tenant member may be settled once a year or after the lease expires in accordance with the provisions of Article 33 of these regulations. The original wages of the lessee and the partnership members, as well as the wages that should be adjusted during the lease period according to state regulations, shall be included in the archives as the basis for resuming wages after the expiration of the lease period. The salary income of the fully leased member and the income of the leased enterprise shall be determined by both parties through consultation. Article 33 In principle, the income of the lessee shall not exceed five times the average salary (including bonuses) of the employees of the enterprise. The income of other leased members shall be lower than that of the leased operator. If the lessee's personal income exceeds the threshold standard of personal income adjustment tax every month, it shall be taxed according to regulations. Article 34 The income obtained by the lessee according to the proportion agreed in the lease operation contract, which remains after paying the rent and actually paying it to the lessee, shall be kept as the risk deposit of the enterprise. Article 35 When the lease operation contract is terminated, the lessor shall, jointly with the relevant departments, review the operating results of the lessee. If the total operating target set in the lease operation contract is reached and the rent is paid in accordance with the provisions of the lease operation contract, the lessor shall, with the consent of the workers' congress, pay one to five times the cash amount guaranteed by the lessee from the enterprise risk deposit according to the operating conditions of the enterprise. During the lease term, if the lessee fails to meet the overall business objectives agreed in the lease operation contract or fails to pay the rent, it shall be made up by the enterprise risk deposit, prepaid living expenses (or the annual income of the leased member), and the insufficient part shall be made up by the guarantee property provided by the lessee and the guarantor. The guarantor has the right to recover from the lessee with the property he guarantees. Thirty-sixth individual tenant operators shall pay the guarantor's risk compensation from their personal income and conclude a written agreement. Chapter VIII Supplementary Provisions Article 37 Measures for the labor and financial management of leasing enterprises shall be formulated by the relevant departments of the State Council in accordance with these regulations. Thirty-eighth collective-owned industrial enterprises to implement leasing business, can refer to the implementation of this Ordinance. Article 39 The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may formulate detailed rules for implementation in accordance with these Regulations. Article 40 These Regulations shall come into force as of July 2008 1998.