Actively fulfill duties and promote compliance reform of involved enterprises

2024-04-11

In the process of promoting compliance reform of enterprises involved in cases, we need to strengthen proactive performance, fully utilize legal assistance to help enterprises overcome difficulties, extend judicial functions, promote source governance, and do a deep and practical job of "grasping the front end and treating diseases before they occur". On March 26th, the Supreme People's Court held a (expanded) collective learning seminar for the Party Group Theory Learning Center. Zhang Jun, Secretary of the Party Group and President of the Supreme People's Court, emphasized the need to deeply implement and refine the spirit of the National People's Congress and the Chinese People's Political Consultative Conference, and serve high-quality development through active performance of duties. At this year's National People's Congress and Chinese People's Political Consultative Conference, a case of corporate compliance reform tried by the People's Court of Nanxun District, Huzhou City, Zhejiang Province was included in the work report of the Supreme People's Court. The report mentions that a textile printing and dyeing enterprise has been fined multiple times for exceeding pollution standards, its funding chain has been broken, and it has fallen into semi closure. The court, in conjunction with the environmental protection department, has urged it to comply with regulations, update environmental protection equipment, and fully resume work and production. In the fourth quarter of last year, the output value increased by 85.7% year-on-year, almost crushing the basic debt repayment of the enterprise. Careful analysis of this case reveals multiple shining points in its performance. One is to actively dispose of corporate debt: guiding shareholders to fulfill their obligation to subscribe for capital contributions. The enterprise involved in the case has been executed in multiple cases and has no assets available for execution. Therefore, it has been applied for bankruptcy by creditors. Faced with a company that was almost overwhelmed by debt, the court did not choose to simply "break it down". Instead, it guided the manager to conduct a comprehensive due diligence investigation and found that the shareholders of the company had not paid their subscribed capital due to the expiration of the deadline, which was clearly a corporate asset that should be recovered. If the machinery follows the procedure and guides the manager to file a lawsuit to recover unpaid capital, on the one hand, it will face a long period of trial and execution procedures, and on the other hand, the recovery effect is also unknown, and the interests of creditors may still not be guaranteed. Therefore, in this case, the court fully carried out legal interpretation and clarification work, informing the company's shareholders that bankruptcy is a statutory reason for accelerating the maturity of subscribed capital, as well as the corresponding legal consequences of not fulfilling the obligation to subscribe capital, and urging shareholders to raise 3.5 million yuan to repay debts. The case shifted from bankruptcy liquidation procedure to bankruptcy settlement procedure, and the repayment rate of ordinary creditors increased from 0% to 84%. The interests of creditors were maximally protected, and the enterprise also had a chance to breathe. The second is to actively ensure the survival of enterprises: guide enterprises to carry out environmental compliance rectification. Generally speaking, once the bankruptcy settlement agreement is fulfilled, the corresponding bankruptcy settlement case can be concluded. However, in this case, the court's preliminary investigation found that although the company had a pollution discharge permit issued by the government, it was subject to administrative penalties for multiple violations of pollution discharge. This not only worsened the company's business situation, but also brought huge hidden dangers to the bankruptcy case trial. If a series of problems caused by environmental violations are not dealt with together, the enterprise will still face administrative penalties and may even be shut down due to violations. Efforts to save the enterprise through bankruptcy settlement procedures will also be in vain. Therefore, the court issued judicial recommendations to guide enterprises to initiate environmental compliance rectification procedures, and consulted with the environmental protection department to determine the feasibility of compliance rectification plans, clarify relevant rectification requirements, and urge enterprises to update their pollution discharge equipment and production lines. After passing the acceptance inspection by the environmental protection department, the company successfully resumed work and production, and more than 120 employees were employed

Edit:Yi Yi    Responsible editor:Jia Jia

Source:http://rmfyb.chinacourt.org

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