Crack the difficulty of "zombie companies" exiting, the State Administration of Market Regulation deploys pilot work of compulsory liquidation

Today, reporters have learned that the State Administration for Market Regulation has selected 7 provinces including Beijing, Hebei, Jiangsu, Zhejiang, Henan, Sichuan, and Guangdong to carry out pilot projects for mandatory liquidation applications from registration authorities to the people's courts. For enterprises with operational abnormalities and neglecting their liquidation obligations, in addition to being able to apply for mandatory liquidation by company shareholders, creditors and other related parties to the people's court, the newly revised "Company Law of the People's Republic of China" specifically adds that relevant departments or company registration authorities can also apply for mandatory liquidation to the people's court. The pilot projects launched in some areas are a strong measure to implement the newly revised "Company Law of the People's Republic of China", conducive to establishing a "government-court collaboration" mandatory liquidation mechanism, clarifying the application conditions, process steps, material standards, organizational support, etc., in order to accumulate replicable and promotable experience and practices for the nationwide promotion and implementation of mandatory liquidation work.