I am a collective-owned worker recruited by the region and do logistics management in a state-owned educated youth unit. It is legal for companies and enterprises not to pay insurance for me.

At the national level, there are no normative provisions on the reform of collectively owned enterprises. Involving the reform of collective enterprises, it should be standardized and adjusted according to the second chapter of the Regulations of People's Republic of China (PRC) Municipality on Urban Collective Ownership Enterprises (Order No.88 of the State Council). At the same time, the competent department of the enterprise should formulate the plan or implementation rules for enterprise restructuring according to law.

Regulations of People's Republic of China (PRC) Municipality on Urban Collective Enterprises

(Adopted at the 86th executive meeting of the State Council on June 2 199 1)

(1991promulgated by Decree No.88 of the State Council on September 9)

Chapter I General Provisions

Article 1 These Regulations are formulated in order to ensure the consolidation and development of urban collective ownership economy, clarify the rights and obligations of urban collective ownership enterprises and safeguard their legitimate rights and interests.

Article 2 These Regulations shall apply to collectively-owned enterprises in various industries and organizational forms in cities and towns, except enterprises organized by rural farmers collectively.

Article 3 The urban collective ownership economy is a basic part of China's socialist public ownership economy, and the state encourages and supports the development of the urban collective ownership economy.

Article 4 Urban collectively-owned enterprises (hereinafter referred to as collective enterprises) are socialist economic organizations whose property belongs to the working people collectively, which implement equal pay for equal work and take distribution according to work as the main body.

The collective ownership of working people mentioned in the preceding paragraph shall meet one of the following requirements:

(a) the working people of this collective enterprise are collectively owned;

(two) collective ownership of the working people within the scope of collective enterprises and joint economic organizations;

(3) If the investors are two or more collective enterprises, the property collectively owned by the working people in items (1) and (2) above shall be dominant. The term "dominant position" as mentioned in this item refers to the proportion of the property collectively owned by the working people to the total property of the enterprise, which should generally be no less than 5 1%, and may be appropriately reduced with the approval of the original examination and approval department in special circumstances.

Article 5 The principles that collective enterprises should follow are: voluntary combination, self-financing, independent accounting, self-financing, independent operation, democratic management, collective accumulation and self-control, distribution according to work, and shareholding and dividends.

Collective enterprises should carry forward the spirit of hard struggle and building the country through thrift and take the road of mutual assistance and cooperation and common prosperity.

Article 6 Collective enterprises shall obtain legal person status according to law and independently bear civil liability with all their property.

The property of collective enterprises and their legitimate rights and interests are protected by state laws and are inviolable.

Article 7 The tasks of collective enterprises are to develop commodity production, expand commodity management, provide social services, create wealth, increase accumulation, continuously improve economic and social benefits and prosper the socialist economy according to the needs of the market and society and under the guidance of state plans.

Article 8 The employees of a collective enterprise are the owners of the enterprise and exercise the enterprise management right in accordance with laws, regulations and the articles of association of the collective enterprise. The legitimate rights and interests of employees in collective enterprises are protected by law.

Article 9 Collective enterprises shall practise democratic management according to law. The workers' (representatives') congress is the authority of collective enterprises, which elects and dismisses enterprise managers and decides on major issues of operation and management.

Collective enterprises implement the factory director (manager) responsibility system.

The democratic management rights of employees in collective enterprises and the exercise of functions and powers by factory directors (managers) are protected by law.

Article 10 The production party in the grass-roots organizations of collective enterprises in China is the core of political leadership of collective enterprises, leading the ideological and political work of enterprises and ensuring the implementation of the principles and policies of the party and the state in this enterprise.

Article 11 Trade unions in collective enterprises safeguard the legitimate rights and interests of workers, independently carry out their work according to law, and organize workers to participate in democratic management and supervision.

Chapter II Establishment, Change and Termination of Collective Enterprises

Twelfth the establishment of collective enterprises must meet the following conditions:

(a) the name, organization and articles of association of the enterprise;

(2) Having a fixed production and business operation place and necessary facilities, and meeting the prescribed safety and health conditions;

(3) Having funds and the number of employees that meet the requirements of the state and are commensurate with the scale of production, operation and service;

(4) Having a clear business scope;

(5) Being able to bear civil liability independently;

(6) Other conditions stipulated by laws and regulations.

Article 13 The articles of association of a collective enterprise must specify the following items:

(1) The name and domicile of the enterprise;

(2) Business scope and mode of operation;

(3) Registered capital;

(four) the source of funds and investment methods;

(5) income distribution mode;

(six) the organization and its powers and rules of procedure;

(seven) the conditions and procedures for employees to join and quit the enterprise;

(eight) the rights and obligations of employees;

(9) The procedure for the formation of the legal representative and the scope of its functions and powers;

(10) Conditions and procedures for the termination of the enterprise;

(11) Procedures for amending the Articles of Association;

(12) Date of conclusion of the articles of association;

(thirteen) other matters that need to be clarified.

Article 14 The establishment of a collective enterprise must be approved by the examination and approval department prescribed by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government, and approved and registered by the administrative department for industry and commerce according to law, and the production and business activities can only begin after obtaining the Business License of Enterprise as a Legal Person.

Where laws and regulations have special provisions on the examination and approval department for the establishment of collective enterprises, such provisions shall prevail.

Collective enterprises shall engage in production and business activities within the approved and registered business scope.

Article 15 The merger, division, closure, relocation or change of major registered items of collective enterprises must comply with the relevant provisions of the state. An enterprise shall submit an application to the original examination and approval department for approval, and handle the change registration with the original registration authority according to law.

Article 16 The merger and division of collective enterprises shall follow the principles of voluntariness and equality, and the parties concerned shall sign an agreement according to law, properly handle the creditor's rights and debts, other property relations and remaining issues, and properly arrange enterprise personnel.

The rights and obligations of a collective enterprise before its merger or division shall be enjoyed and assumed by the legal person after the merger or division.

Seventeenth collective enterprises terminated for one of the following reasons:

(a) the enterprise can not continue to operate, and the application for dissolution is approved by the original examination and approval department;

(2) It has been revoked according to law;

(3) Declaring bankruptcy according to law;

(4) Other reasons.

Article 18 When a collective enterprise terminates, it shall liquidate its assets in accordance with the relevant provisions of the state. The enterprise property shall pay off all debts and expenses in the following order:

(1) Expenses required for liquidation;

(two) arrears of wages and labor insurance fees;

(3) the taxes owed;

(4) Loans and other debts owed to banks and credit cooperatives.

If it is not enough to pay off the repayment requirements in the same order, it will be distributed in proportion.

Article 19 The remaining property after the liquidation of the property of a collective enterprise shall be disposed of in the following ways:

(1) If the state, units and individuals outside the enterprise and employees of the enterprise invest in shares, they shall be repaid from the remaining property of the enterprise in the same proportion according to the proportion of their investment shares in the total assets of the enterprise;

(2) The surplus property shall be used by the superior management organization of the enterprise for the expenses of unemployment, old-age relief, job placement and vocational training of the employees of the enterprise, and shall be used for special purposes and shall not be used for other purposes.

Twentieth collective enterprises to terminate, must be in accordance with the "Regulations" management of enterprise legal person registration in People's Republic of China (PRC) for cancellation of registration, and make an announcement.

Chapter III Rights and Obligations of Collective Enterprises

Article 21 Collective enterprises shall enjoy the following rights within the scope of national laws and regulations:

The right to own, use, benefit from and dispose of all its property, and reject any form of equal rights;

(two) independently arrange production, operation and service activities;

(three) enterprises have the right to determine the prices of products and services, except those controlled by the price department and the relevant competent departments as stipulated by the state;

(four) enterprises have the right to negotiate and sign contracts with foreign investors in accordance with state regulations to extract and use foreign exchange income;

(five) in accordance with the provisions of the national credit policy, apply for loans from the relevant professional banks;

(six) according to the provisions of the state to determine the form of economic responsibility system, wages and bonuses, dividends;

(seven) enjoy all kinds of preferential treatment stipulated by the state policy;

(eight) to attract employees and other enterprises, institutions and individuals to raise funds for shares, to join hands with other enterprises and institutions, to invest in other enterprises and institutions, and to hold shares in other enterprises;

(nine) to decide on the organization, staffing, labor organization and employment mode of the enterprise, and to hire and dismiss employees in accordance with state regulations;

(10) Employees' rewards and punishments.

Article 22 Collective enterprises shall undertake the following obligations:

(a) to abide by the laws and regulations of the state and accept the guidance of the state plan;

(2) Paying taxes and fees according to law;

(three) to perform the contract according to law;

(four) improve management, promote technological progress and improve economic efficiency;

(five) to ensure the quality of products and services, and to be responsible for users and consumers;

(six) the implementation of the safety production system and the implementation of labor protection and environmental protection measures;

(seven) to do a good job in the internal security of enterprises;

(eight) to safeguard the legitimate rights and interests of workers, respect the democratic management rights of workers, improve working conditions, do a good job in family planning, and improve the material and cultural living standards of workers;

(nine) to strengthen the ideological and political education, legal education, national defense education, scientific and cultural education and technical business training for employees, and improve the quality of the workforce.

Twenty-third collective enterprises have the right to voluntarily form, join and withdraw from the joint economic organization of collective enterprises in accordance with state regulations, and enjoy rights and assume obligations in accordance with the articles of association of the joint economic organization.

Chapter IV Staff (Representatives) Congress

Article 24 Anyone who applies for, recognizes and abides by the articles of association of a collective enterprise and is employed by the enterprise may become an employee of the collective enterprise.

Twenty-fifth workers in accordance with the provisions of laws and regulations, enjoy the following rights in collective enterprises:

(a) The right to vote and stand for election in management positions at all levels of enterprises;

(two) to participate in the democratic management of enterprises and supervise the activities of enterprises and the work of management personnel;

(three) to participate in labor and enjoy the right to labor remuneration, labor protection, labor insurance, medical care and rest and vacation;

(four) to receive vocational and technical education and training, and to evaluate professional and technical titles in accordance with state regulations;

(5) Resignation;

(6) Enjoy retirement benefits;

(7) Other rights.

Article 26 Employees shall perform the following obligations:

(a) to abide by the laws and regulations of the state and the rules and regulations of collective enterprises and labor discipline, to engage in labor as the owner of the enterprise, and to do a good job;

(two) to implement the resolutions of the staff and workers' (representatives) congress and complete the tasks;

(3) safeguarding the collective interests of enterprises;

(four) study hard political, cultural and scientific knowledge, and constantly improve their own quality;

(five) other obligations stipulated by laws, regulations and the articles of association of the enterprise.

Twenty-seventh collective enterprises must establish and improve the staff (representative) assembly system:

(1) Collective enterprises with less than 100 employees shall establish a system of workers' congresses;

(2) Collective enterprises with more than 300 employees should establish a staff congress system;

(3) Collective enterprises with employees 100 or more but less than 300 shall establish a system of workers' congress or workers' congress, which shall be determined by the enterprise.

Representatives of the workers' congress are elected by the workers. Representatives should be workers with progressive thinking, active work, contact with the masses and the ability to participate in democratic management.

Twenty-eighth collective enterprise workers (representatives) general assembly shall exercise the following functions and powers within the scope prescribed by national laws and regulations:

(a) to formulate and amend the articles of association of collective enterprises;

(2) To elect, recall, appoint and dismiss the factory director (manager) and deputy factory director (deputy manager) in accordance with state regulations;

(three) to consider the proposal submitted by the director (manager) and decide on major issues in the operation and management of the enterprise;

(4) Deliberating and deciding on the salary form, salary adjustment plan, bonus and dividend plan, employee housing allocation plan and other major issues involving employee welfare;

(five) to consider and decide on the measures for rewards and punishments for employees and other important rules and regulations of the enterprise;

(six) other functions and powers stipulated by laws, regulations and the articles of association of the enterprise.

Twenty-ninth workers (representatives) meeting shall be held regularly in accordance with the articles of association of the enterprise, but not less than twice a year.

Article 30 The workers' congress of a collective enterprise may set up a permanent body to be responsible for the work of the workers' congress when it is not in session.

The personnel composition, form, authority and name of the permanent establishment shall be stipulated by the workers' congress of the collective enterprise and reported to the superior management institution for the record.

Chapter V Factory Director (Manager)

Thirty-first collective enterprises to implement the factory director (manager) responsibility system. The factory director (manager) is responsible for the meeting of employees (representatives) of the enterprise and is the legal representative of the collective enterprise.

Article 32 The factory director (manager) shall be elected or hired by the enterprise workers' congress. Specific measures for election and recruitment shall be formulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

The director (manager) of a collective enterprise invested by a joint economic organization may be appointed or removed by the joint economic organization.

Collective enterprises with diversified investment subjects, in which the state investment reaches a certain proportion, the factory director (manager) may be appointed or removed by the superior management institution in accordance with the relevant provisions of the state.

Article 33 A factory director (manager) shall meet the following conditions:

(a) to understand the relevant laws, regulations, principles and policies, and adhere to the socialist management direction of enterprises;

(two) familiar with the business of the industry, good at management, organization and leadership;

(three) love the collective, integrity, contact with the masses, a democratic style;

(4) Other conditions stipulated by laws and regulations.

Article 34 The factory director (manager) shall exercise the following functions and powers within the scope prescribed by laws and regulations:

(1) To lead and organize the daily production, operation and management of enterprises;

(two) to preside over the preparation and put forward the medium and long-term development plan, annual production and operation plan and fixed assets investment plan of the enterprise to the staff (representative) meeting;

(three) presided over the preparation and put forward the enterprise organization plan to the staff (representative) meeting, and decided on the labor organization adjustment plan;

(four) according to the provisions of the state, the appointment and removal of middle-level administrative leading cadres in enterprises, but otherwise provided by laws and regulations, such provisions shall prevail;

(five) to put forward the annual financial budget, final accounts and profit distribution plan of the enterprise;

(six) put forward the enterprise's economic responsibility system plan, salary adjustment plan, labor protection measures plan, reward and punishment measures and other important rules and regulations;

(7) Rewarding and punishing employees;

(eight) in case of special circumstances, put forward the proposal of holding a staff (representative) meeting;

(9) Other functions and powers as stipulated in the articles of association of the enterprise.

Article 35 The factory director (manager) shall have the following duties:

(a) to implement the principles and policies of the party and the state, abide by national laws and regulations, and implement the resolutions of the workers' (representatives) congress;

(two) organize employees to complete the production and operation tasks and various economic and technical indicators of enterprises, promote the technological progress of enterprises, improve economic benefits and enhance the development ability of enterprises;

(three) strictly abide by financial discipline, adhere to democratic financial management, and regularly publish financial accounts to employees;

(four) to protect the legitimate rights and interests of enterprises and the legitimate rights of employees;

(five) do a good job in employee welfare, and gradually develop employee pension and unemployment insurance;

(six) to organize the implementation of safety and health measures to achieve safe and civilized production;

(seven) regularly report to the enterprise staff (representatives) meeting, listen to opinions and accept supervision;

(eight) other duties stipulated by laws, regulations and the articles of association of the enterprise.

Chapter VI Property Management and Income Distribution

Article 36 Collective enterprises shall conduct assets verification in accordance with the provisions of this Chapter, and clarify the ownership of property.

Article 37 The public accumulation of a collective enterprise belongs to the collective ownership of the working people of the enterprise.

Article 38 The investment of a collective enterprise and a joint economic organization belongs to the working people collectively within the scope of the joint economic organization.

Mutual assistance and cooperation funds established by collective enterprises and joint economic organizations are mainly used to develop production and promote prosperity within the scope of the organization.

Article 39 Collective enterprises supported by enterprises, institutions and social organizations. Can be handled in one of the following ways:

(1) As an enterprise borrows money from the supporting unit, the enterprise shall return it to the supporting unit in the manner and within the time limit agreed by both parties;

(two) as a supporting unit to invest in enterprises, according to the proportion of their investment in the total assets of enterprises, to participate in the distribution of enterprise profits.

The sources of support funds for enterprises, institutions and social organizations must comply with the relevant provisions of the state finance department.

Enterprises, institutions, social organizations and other collective enterprises they support should clearly draw a clear line between property rights and financial relations. Support units shall not interfere with the business activities of collective enterprises, and collective enterprises shall not rely on support units.

Article 40 The employee's share capital shall be owned by the employee himself.

Article 41 The investment of units and individuals other than collective enterprises shall be owned by the investors.

Forty-second collective enterprises to absorb the shares of employees and various investments, investors can transfer or inherit according to law.

Article 43 Collective enterprises must ensure the integrity of their property, and rationally use and effectively manage their property.

Article 44 The income distribution of collective enterprises must follow the principle of giving consideration to the interests of the state, the collective and the individual.

Forty-fifth collective enterprises must implement the relevant state financial and accounting systems, accept audit supervision, and strengthen internal financial management.

Article 46 After-tax profits of collective enterprises shall be independently controlled by enterprises according to law. An enterprise shall determine the proportion of provident fund, public welfare fund, labor dividend and share dividend in accordance with state regulations.

Article 47 The remuneration of employees in collective enterprises must adhere to the principle of distribution according to work. The specific distribution form and method shall be determined by the enterprise itself.

Forty-eighth share dividends of collective enterprises should be linked to the profits and losses of enterprises. Company profits, dividends paid by shares; If the enterprise loses money, it shall not pay dividends before making up the loss.

Forty-ninth collective enterprises must withdraw pension and unemployment insurance funds for employees in accordance with state regulations. Employee pension, unemployment and other insurance funds shall be withdrawn before income tax is levied in accordance with state regulations, stored in special accounts and used for special purposes.

Chapter VII Relationship between Collective Enterprises and Government

Fiftieth people's governments at all levels should incorporate the development of urban collective economy into the national economic and social development plans of governments at all levels, give support and guidance from all aspects, and ensure the healthy development of urban collective economy.

Article 51 The competent department of urban collective economy in the State Council is responsible for the macro guidance and management of urban collective economy throughout the country. Their main duties are: to formulate policies and regulations for the development of urban collective economy, coordinate major issues in the development of urban collective economy throughout the country, and organize relevant parties to supervise and inspect the implementation of policies and regulations for collective enterprises.

Article 52 The people's governments at or above the city (including county-level cities, the same below) shall, according to the needs of the development of urban collective economy, determine the guidance departments of urban collective enterprises, strengthen the policy guidance for collective enterprises, coordinate the problems in the development of urban collective economy in the region, and organize relevant parties to supervise and inspect the implementation of policies and regulations of collective enterprises.

Article 53 The relevant industry management departments of the government shall, in accordance with the provisions of laws and regulations, be responsible for the industry guidance and management of collective enterprises in this industry within the scope of their respective duties.

Article 54 Other relevant departments of people's governments at all levels shall supervise and provide services to collective enterprises according to law.

Article 55 The state protects the legitimate rights and interests of collective enterprises.

No government department, other unit or individual may change the nature of collective ownership of collective enterprises and damage their property ownership, apportion manpower, material resources and financial resources to collective enterprises, or interfere in their production, operation and democratic management.

Chapter VIII Legal Liability

Fifty-sixth collective enterprises have one of the following acts, the administrative department for Industry and Commerce shall give administrative punishment in accordance with the provisions of relevant state laws and regulations:

(a) without approval and registration, to carry out activities in the name of collective enterprises;

(two) registration fraud or not in accordance with the provisions of the application for change of registration;

(3) engaging in business activities in violation of the approved and registered projects or beyond the approved and registered business scope;

(four) the use of separation, merger, termination and liquidation and other acts to withdraw funds, conceal, privately divide property;

(5) Other illegal acts.

Article 57 Collective enterprises that produce and sell fake and inferior commodities, causing property losses and personal injuries to users and consumers, shall be liable for compensation; If the case constitutes a crime, the leaders of collective enterprises and other directly responsible personnel shall be investigated for criminal responsibility according to law.

Article 58 Any unit or individual who, in violation of the provisions of these Regulations, apportions or embezzles or misappropriates the property of a collective enterprise must make compensation. The person in charge who is directly responsible and other directly responsible personnel shall be given administrative sanctions by the relevant competent authorities according to the seriousness of the case; If a crime is constituted, criminal responsibility shall be investigated according to law.

Fifty-ninth leaders of collective enterprises abuse their powers and infringe upon the legitimate rights and interests of employees, and if the circumstances are serious, they shall be given administrative sanctions by the superior management institutions in accordance with the cadre management authority; Abuse of power, jobbery, and retaliation against employees shall be investigated for criminal responsibility according to law.

Article 60 If the leaders of collective enterprises and the staff of relevant government departments cause losses to the enterprise due to dereliction of duty, the superior management institution of the enterprise or the relevant government departments shall give administrative sanctions according to the cadre management authority.

Leaders of collective enterprises and staff of relevant government departments neglect their duties, resulting in heavy losses to the property and interests of collective enterprises, which constitutes a crime, and shall be investigated for criminal responsibility according to law.

Article 61 If a collective enterprise violates the provisions of these Regulations on the conditions and procedures for the generation and removal of the leaders of the collective enterprise, it shall be corrected by the superior management organization, and the administrative responsibility of the directly responsible personnel shall be investigated.

If the superior management institution of a collective enterprise violates the conditions and procedures for the generation and removal of the leaders of the collective enterprise in these regulations, it shall be corrected by its superior competent department; If the circumstances are serious, the administrative responsibility of the person directly responsible shall be investigated.

Article 62 Whoever obstructs the leaders of collective enterprises from performing their duties according to law shall be punished by the public security organs in accordance with the Regulations of the People's Republic of China on Administrative Penalties for Public Security; If a crime is constituted, criminal responsibility shall be investigated according to law.

Sixty-third disturb the order of collective enterprises, resulting in production, operation and work can not be carried out normally or can not be carried out, by the public security organs in accordance with the "Regulations of the People's Republic of China on administrative penalties for public security" to be punished; If a crime is constituted, criminal responsibility shall be investigated according to law.

Chapter IX Supplementary Provisions

Article 64 Measures for the establishment and management of collective enterprises and joint economic organizations shall be formulated separately.

Article 65 The management of all kinds of collectively-owned companies shall be implemented in accordance with the laws and regulations of the relevant state companies.

Sixty-sixth urban collective ownership of culture, education, health, scientific research and other institutions, with reference to these regulations.

Measures for the administration of supply and marketing cooperatives shall be formulated separately.

Sixty-seventh collective enterprises engaged in employment services shall abide by the principles stipulated in these regulations, and the specific management measures shall be implemented in accordance with the Regulations on the Administration of Employment Service Enterprises issued by the State Council.

Measures for the administration of welfare collective enterprises that centrally resettle disabled persons shall be formulated separately according to the principles of these regulations.

Article 68 Measures for the administration of collective enterprises supported by the army shall be formulated separately by the General Logistics Department of China People's Liberation Army in accordance with the principles stipulated in these Regulations.

Article 69 The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government and the departments in charge of various industries in the State Council may, in light of the specific conditions of their respective regions and industries, formulate detailed implementation rules.

Article 70 These Regulations shall come into force as of 1992 1 month 1 day.

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