Thursday, December 22, 2016

Beijing daily most sensitive ice Beijing Municipal State owned enterprise reform

Photo: vision China

December 22, Beijing business reported reporter from Beijing city SASAC was informed that, by municipal government audit agreed, municipal State-owned holding mixed ownership enterprise carried out employees holding pilot of implementation approach (Xia said approach) has Yu recently official announced, first clear has employees holding and management of 10 items main content, and on from employees range, and funded source, and funded way, and shares price, and holding proportion, and holding way, 10 a aspects for has detailed provides. Analysis is generally believed that, as a State-owned enterprise reform in the most sensitive areas, employee-owned ice in Beijing is of great significance, and is able to achieve the desired effect, you will also need to rely on exit mechanism, further perfection of the supervision.

Employee stock ownership may not be higher than the total equity 30%

Specifically, this method from employee ownership, mode of holding 10 aspects such as the pilot was provided, clearly employee contributions may include cash, technology shares; total employee stock ownership in principle is not higher than the company's total share capital of 30%, a single employee stake in principle is not higher than the company's total share capital of 1%; locking of the ESOP shall have not less than 36 months.

It is worth mentioning that, in mid-August this year, officially issued the State-owned assets supervision on State-owned mixed-ownership enterprises to develop employee-owned pilot opinion (hereinafter referred to as the opinion), clarified the conditions and requirements for employee stock ownership, of the approach of the Beijing Rules for the implementation of the above-mentioned documents. Beijing business today reporter comparing two documents found in terms of employee shareholding and stock ownership, the Beijing Rules and the SASAC issued remain the same. But because of this, the industry points out that after the opinion only framework document and have a lot of white space, this problem also appears in the Beijing Rules.

Insiders said there was some trimming the single employee stock ownership is more than 1%, which is "single employee stock ownership should not exceed 1%" contrary to. For such concerns, State expert, Shanghai day strong consulting General Manager Zhu Boshan told Beijing business today reporter, due to employee stock ownership on several occasions at the beginning of this century caused the loss of State assets, so the concept of employee ownership has been very cautious in our country, most unruffled State-owned enterprises, and even before and after 2008, China also appeared holding a worker's "withdrawal tide".

And for listing State-owned enterprises, employees and the families in situations that may increase its stake, Zhu Boshan said Beijing's approach mainly for non-listed companies, this is because my country in August this year introduced the incentive regulation of listed companies, listed State-owned enterprises has been made more stringent specifications. Also the opinion, the listed company after the expiry of lock, the company directors and executives a year transfer of shares shall not exceed 25% shares held by such immediate family when they were in the same enterprise, can only one person holding, to prevent the above situation.

Analysis concerns some may abuse the leadership of local State-owned enterprises, and increase their stake, will affect the fairness of the employee stock ownership. Reporters check out State-owned assets supervision issued the opinion found that provision, the Party Central Committee and the State Council and the local party committees, Governments and their departments, agencies appointed by the State-owned enterprise's leaders may not be holding. Outside directors and supervisors (with staff representatives and supervisors) does not participate in the employee stock ownership.

Construction, tourism or State-owned enterprise advantage

In addition to the proportion of employee ownership and way, the approach also provided for the selection of pilot enterprises, which suggested that enterprises at the municipal level, four and the following companies are in principle not pilot, city public service and special features in such a business resource, monopolistic business enterprises and policies, employee stock ownership is not enforced. There are disputes, on violations of the employee stock ownership of State-owned enterprises requirements and failure to complete the rectification of business shall not apply to employee-owned pilot.

In fact, as early as 2014, Beijing has proposed a functional orientation of State-owned enterprises in accordance with the different municipal pilot reform fall into three categories, namely, city public service, special features, and competition classes. Deputy Director of the Beijing Municipal Commission on Chang revealed, from the distribution of resources and capital distribution of city public services 19%, special-purpose capital 22.6%, competitive 58.4%. But, Beijing city SASAC related head told Beijing business reported reporter, currently Beijing just set has municipal State-owned enterprises classification of direction, specific rules also in constantly adjustment, list yet announced, and in this times pilot in the, business class state-owned enterprises and meet capital city strategy positioning of State-owned enterprises may get priority support, special function class in the of State-owned enterprises specific has which several can participation pilot, also to be considerations. CIC Qi bin overseas mergers and acquisitions on

In business in such State-owned enterprises, Zhu Boshan predicted that the higher degree of marketization of State-owned enterprises more likely to be the first batch of pilot enterprises, such as construction may be piloting one of the key industries, and of much concern to tourism, electronics, pharmaceuticals and its subsidiaries may also take advantage of State enterprises.

However, not all municipal State-owned enterprises to be included in the pilot. China's central enterprises, State-owned enterprise is divided into nine levels. China Enterprise Institute chief researcher Li Jin to food class place State-owned enterprises for cases explained said, food class place State-owned enterprises of headquarters is level enterprise, Headquarters its is responsible for production meat, and eggs products, and seafood products of branch is two level enterprise, for these two level Enterprise provides cold chain logistics, and processing slaughter, and points pin of subsidiary is three level enterprise, for these subsidiary supply mechanical equipment of is four level subsidiary, also can according to different city again divided Wu、liuji subsidiary.

Industry experts speculated that says, an enterprise is often the municipal headquarters of the State-owned enterprise, modified in these enterprises took the lead in the pilot, involving too much, work is difficult, this may be the way this principle should not select a headquarters to pilot one of the reasons. Beijing did not opt for the four-level and corporate pilot, on the other hand, levels are too high of subsidiaries were small, employee stock ownership is still in the pilot stage, focus on the replicability of pilot experience, too-small companies are not the most suitable for the pilot.

Details have yet to be perfect

Helps to stimulate activity of State enterprises, but equity incentives deal still has a lot of risk need to be more vigilant, how to prevent the loss of State assets, is part of the industry is most concerned about. Zhu Boshan, with respect, is more serious in certain State-owned enterprises, such as internal and external information is wrong, may indeed lead to manipulation in policy ground is possible, "thus ensuring policy compliance in operations is particularly important, in accordance with regulations and incentive implementation should be the parent account. Li Jin also blunt, if no perfect of exit mechanism, and relative transparent of publicity system and strong of supervision constraints, enterprise business external loss equity will will reached is high of proportion, eventually became less part people profiteering, and "cut empty" enterprise of a article path, "previously, many intends listed company of internal employees holding plans in pilot process in the on appeared had Enterprise senior posing as workers name holds enterprise shares, IPO Hou high sets now get huge returns of fraud phenomenon. "

Other analyses have pointed out, the current law provides for the establishment of Corporation, should have more than two people below 200 for the sponsor, a limited liability company set up by 50 or fewer shareholders, it is the upper limit of the shareholders of a corporation and limited liability company, 200 people and 50 people respectively. But more than for medium State-owned enterprises, especially science and technology enterprises, scientific research institutes, if implementation of the ESOP, will exceed the above limit, or restrictions to the capital markets and further internationalisation.

Fudan Shi Lei, Director of the Center for economic research warned that holding the pilot, in the process of implementation, some technical, indicative action programme still further, considering the characteristics of different industries. "To technology type of enterprise for cases, this class enterprise itself is labor employment capital, that is investors does not necessarily is technology intellectual property real of has who, and part employees may is real of intellectual property of has who, in these enterprise in, how on they for effective of incentive, let they common maintained enterprise of long-term sustainable development, is most key of", Benji said, points equity not eventually purpose, points equity is means.

 

Source: Beijing, business daily

Original title: the most sensitive area of State-owned enterprises reform to break the ice, Beijing Municipal State Enterprise employee stock ownership rules released

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