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Implementation Measures of Beijing Municipal Higher People's Court and Other Departments on the Establishment of a Unified Coordination Mechanism for Enterprise Bankruptcy Featuring Linkage of the Government and Court

Jing Gao Fa Fa [2019] No. 698

To carry out the guiding principles of the 19th CPC National Congress, carry forward the new development concept, serve and support the supply-side structural reform, create the international first-class business environment, prevent and defuse major risks, actively, steadily and coordinately promote business coordination, information provision and stability maintenance in the handling of enterprise bankruptcy, implement the requirement of the CPC Central Committee for "creating conditions for implementation of market-oriented bankruptcy proceedings", and further improve and perfect the construction of bankruptcy mechanisms, the Implementation Measures are hereby formulated based on actual conditions in Beijing.

I. Main tasks

(1) Implement the decisions and arrangements of the CPC Central Committee on supply-side structural reform as well as the CPC Beijing Municipal Committee and Municipal People's Government on the action plan for further optimizing the business environment, coordinate and push forward the smooth progress of enterprise bankruptcy disposal, revitalize the enterprises after bankruptcy reorganization and promote market clearing of the enterprises after bankruptcy liquidation as soon as possible.

(2) Establish the institutionalized communication and coordination mechanism, give play to the functions of functional departments of the government and court, and coordinate to solve key and difficult problems involved in bankruptcy disposal submitted by the government and court, including protection of bankruptcy costs, property defects, operation of surviving assets, staff resettlement, tax policies, credit repairing, enterprise cancellation, participation of financial institutions, intercross of criminal and civil cases, crackdown on evasion and cancellation of debts, etc.

(3) Actively guard against and defuse major risks, especially financial risks, establish the information sharing mechanism for key areas and sensitive cases of enterprises, regularly monitor, evaluate and report information on bankrupt enterprises and "zombie enterprises", and punish illegal acts of malicious evasion and cancellation of debts in accordance with the law.

(4) Establish a cross-departmental joint research mechanism, jointly study the problems in bankruptcy disposal, countersign meeting minutes and other documents, and issue them to relevant organizations for implementation.

II. Members and their responsibilities of the government and court linkage mechanism

The government and court linkage mechanism is composed of 13 organizations, including Beijing Municipal Higher People's Court, Beijing Municipal Civil Affairs Bureau, Beijing Municipal Bureau of Finance, Beijing Municipal Human Resources and Social Security Bureau, Beijing Municipal Commission of Planning and Natural Resources, Beijing Municipal Commission of Housing and Urban-Rural Development, Beijing Municipal Administration for Market Regulation, State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality, Beijing Local Financial Supervision and Administration, Beijing Municipal Tax Service, Operations Office (Beijing) of the People's Bank of China, Beijing Bureau of China Banking and Insurance Regulatory Commission, and Beijing Federation of Industry & Commerce. Other authorities may participate based on work requirements.

(1) Beijing Municipal Higher People's Court: Sort out and put forward the problems that need to be solved by government departments in the court system in terms of enterprise bankruptcy disposal, and make overall arrangements to research on the legal issues related to bankruptcy proposed by relevant government departments.

(2) Beijing Municipal Civil Affairs Bureau: Provide consulting services for the establishment of Beijing Association of Bankruptcy Administrators, handle registration and approval procedures according to law, and promote the establishment of Beijing Association of Bankruptcy Administrators.

(3) Beijing Municipal Bureau of Finance: Ensure the funding guarantee for bankruptcy of enterprises in accordance with the existing laws and regulations and relevant provisions on budget management (4) Beijing Municipal Human Resources and Social Security Bureau: Study and formulate policies and procedures for relevant businesses in the disposal of bankrupt enterprises, including the transfer of social security relations among employees who participate in the insurance of bankrupt enterprises, the socialized management of retirees, the transfer of employees' personnel files, etc., and guide bankrupt enterprises in the handling of employees' labor relations and employment placement services.

(5) Beijing Municipal Commission of Planning and Natural Resources: Put forward advice and suggestions on land disposal of bankrupt enterprises according to the urban master plan.

(6) Beijing Municipal Commission of Housing and Urban-Rural Development: Study, formulate and implement relevant policies on housing transactions involved in the disposal of bankrupt enterprises.

(7) Beijing Municipal Administration for Market Regulation: Further to simplify the procedures for company deregistration and improve the efficiency of bankrupt enterprises to exit the market. Study and solve the problems related to the registration of market entities, archives inquiry, information disclosure and other aspects involved in the bankruptcy of enterprises, and guarantee the smooth performance of managers as well as the implementation of bankruptcy proceedings.

(8) State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality: Coordinate in handling relevant work related to stability maintenance programs, employee resettlement, and bankruptcy cost protection in the bankruptcy disposal of municipal wholly state-owned enterprises and state-holding enterprises.

(9) Beijing Municipal Bureau of Financial Work: Cooperate with relevant departments in cracking down on debt evasion and cancellation in bankruptcy and strengthen the financial coordination of the operation of going concern and the disposal of bankrupt enterprises.

(10) Beijing Municipal Tax Service: Implement preferential tax policies for disposal of bankrupt enterprises, handle tax de-registration for bankrupt enterprises in accordance with laws and regulations and facilitate enterprises in bankruptcy reorganization and market exit according to law.

(11) Operations Office (Beijing) of the People's Bank of China: Study and formulate the restoring policies on the People's Bank Credit Information System for bankrupt enterprises after introducing strategic investors and provide support for their bankruptcy reorganization. Jointly launch the campaign to combat debt evasion and cancellation.

(12) Beijing Bureau of China Banking and Insurance Regulatory Commission: Cooperate with relevant departments in cracking down on the evasion and cancellation of financial debts, and with the financial coordination of the disposal of bankrupt enterprises.

(13) Beijing Federation of Industry & Commerce: as a bridge between micro-sized, small-sized and medium-sized enterprises and the court, propagate and guide enterprises to file for bankruptcy in a timely manner, and uniformly communicate with the court and other member units on the problems encountered in the bankruptcy of related enterprises as a bridge between micro-sized, small-sized and medium-sized enterprises and the courts.

III. Working Rules

The linkage mechanism between government and court implements the regular meeting system. In principle, a plenary meeting will be held by Beijing Municipal Higher People's Court every six months to notify and study relevant work situations, problems and work plans. When necessary, the members may propose to convene plenary meetings or meetings participated in by some members from time to time according to their work needs.

Each member shall designate a fixed staff as the contact for the government and court linkage mechanism.

Beijing Municipal Higher People's Court

Beijing Municipal Civil Affairs Bureau

Beijing Municipal Bureau of Finance

Beijing Municipal Human Resources and Social Security Bureau

Beijing Municipal Commission of Planning and Natural Resources

Beijing Municipal Commission of Housing and Urban-Rural Development

Beijing Municipal Administration for Market Regulation

The People's Government of Beijing Municipality State-owned

Assets Supervision and Administration Commission

Beijing Local Financial Supervision and Administration

Beijing Municipal Tax Service, State Taxation Administration

Operations Office (Beijing) of the People's Bank of China

China Banking and Insurance Regulatory Commission Beijing Supervision Bureau

Beijing Federation of Industry & Commerce

October 28, 2019