Because of poor management will lead to the closure of the company, what are the reasons for the company's bankruptcy? I share the organized reasons for company bankruptcy, welcome to read, just for reference Oh!
What are the reasons for corporate bankruptcy
First, the external causes of business
1, changes in market demand conditions, resulting in stagnation of enterprise products, production slippage.
2, the person in charge of the enterprise career, sense of responsibility is not strong, the financial system is not strict, account management is chaotic.
In the bankruptcy of the enterprise, to varying degrees, there are frequent replacement of financial personnel, only the replacement of people do not hand over the accounts, accounts without continuity; poor implementation of the financial system, income and expenditure can not be done on a daily basis to clear the month and write off the accounts of many problems.
3, a serious shortage of liquidity, the enterprise can not operate normally.
Especially when the country's tightening of the money, the enterprise can not borrow funds from the bank, and no other capital financing channels, resulting in the enterprise can not be normal production, and then good equipment can not play to its advantage. The assets of the enterprise can not effectively generate profits, reducing the utilization of resources.
4, enterprise managers decision-making errors.
In the absence of a serious feasibility study, blindly expanding production or investment in new projects, resulting in an overburdened business, so that the original operating conditions of the business downturn worse.
Second, the internal reasons:
1, debt management.
Debt management is the enterprise through legal means, paid to use external funds for production, operation, management and other activities to obtain profits, the purpose is to expand the scale of the enterprise, to promote the further development of the enterprise, and not just for the survival of the enterprise. Reasonable fundraising, the main function of the enterprise blood financial management, is a prerequisite for enterprises to maintain normal operation, is an important element of modern financial management.
Liability management is a double-edged sword, the use of good, can enable enterprises to quickly raise the funds needed to reduce operating costs, reduce tax expenditures, access to financial leverage benefits, etc.; the use of bad, it will bring disaster to the enterprise. However, if the enterprise on the number of liabilities, limits, channels and ways to choose unreasonable, as well as improper use of debt funds, will also bring a lot of negative impact on the enterprise. Risks arising from excessive debt size. Because debt capital is not only to pay fixed interest, but also to repay the principal according to the agreed terms, no financial flexibility to speak of, on the enterprise is a fixed financial burden, once the business risk and can not repay the debt due, the enterprise will face a larger financial lead to bankruptcy.
2, financial risk.
Risk is a concept associated with loss, is an uncertainty or possible loss. Financial risk is the additional risk borne by sovereign capital in the event of uncertainty of future returns arising from the use of debt capital by a business. If the enterprise business condition is good, make the enterprise investment return rate is greater than the interest rate of debt, then get financial leverage benefit, if the enterprise business condition is poor, make the enterprise investment return rate is less than the interest rate of debt, then get financial leverage loss, even lead to enterprise bankruptcy, this uncertainty is the enterprise use of debt borne by the financial risk.
Other factors:
In addition to the above factors, the size of the company, the volatility of the company's operating income, the company's profitability and the uniqueness of the company's products and production may have a different degree of influence on the size of the company's debt.
First of all, an increase in company size allows a company to diversify its operations, effectively spreading business risks and having a lower probability of bankruptcy. As a result, large firms have higher debt capacity, while small firms tend to use short-term bank borrowing;
Secondly, too much change in a firm's operating income increases its operating risk and reduces its debt capacity accordingly;
Thirdly, when a firm is in a state of bankruptcy, firms that produce unique and specialized goods will incur higher costs in bankruptcy liquidation, and a liquidated firm will have to pay for its workers with special skills and specialized products. A liquidated company has workers with special skills and specialized assets, the company's suppliers and customers will be difficult to find new services quickly, so uniqueness is related to the size of liabilities;
Finally, a company's profitability is often a guarantee and sign of its ability to incur liabilities, higher profitability of the company enjoys a high degree of creditworthiness, and therefore it is easy to raise the necessary funds from creditors, while lower profitability of the company's creditworthiness is lower, the size of liabilities will be limited. Lower profitability of enterprises, the scale of indebtedness should be limited. This can lead to financial crises and even bankruptcy.
How to resettle the employees of the bankruptcy enterprise
First, according to the State Council's "Notice on Issues Related to the Trial Implementation of State-owned Enterprises in a Number of Cities":
In accordance with the provisions of the "Notice", the implementation of the enterprise's bankruptcy must be the first to resettle the employees of the enterprise. The people's governments of the cities or municipal districts or counties where the bankrupt enterprises are located shall take various measures, such as vocational training, introduction of employment, self-help in production, and labor export, to properly arrange for the re-employment of the employees of the bankrupt enterprises, and to ensure that their basic needs of life are met before they are re-employed.
Second, the government encourages employees of bankrupt enterprises to seek self-employment.
For those who seek self-employment, the government can, according to the actual situation in the area, issue a one-time resettlement fee and no longer retain the status of employees of state-owned enterprises. In principle, the one-time resettlement fee is paid in accordance with three times the average wage income of the previous year of the employees in the city where the bankrupt enterprise is located, and the specific payment standard is stipulated by the people's government of the relevant city.
Third, during the period of unemployment of employees of bankrupt enterprises, they shall enjoy unemployment insurance treatment in accordance with the "Regulations on Unemployment Insurance for Employees of State-owned Enterprises".
The expiration of unemployment insurance cannot be re-employed workers, eligible for social assistance, the local civil affairs departments in accordance with the provisions of the social assistance payments.
The retirement and medical fees of retired employees of bankrupt enterprises are managed by local social pension and medical insurance organizations. If the bankrupt enterprise participates in the social integration of pension insurance and medical insurance fund, the retirement fee and medical fee of its retired employees shall be paid by the local social pension and medical insurance organization from the social integration of pension insurance and medical insurance fund respectively. Did not participate in the pension insurance, medical insurance fund social integration or pension insurance, medical insurance fund social integration is insufficient, from the enterprise land use rights to pay the proceeds of the land use rights; disposal of land use rights is not enough to pay the proceeds of the shortfall from the disposal of other insolvency property from the proceeds of the allocation.
Bankruptcy enterprises in the work-related disability or serious occupational diseases, all or most of the loss of working capacity of the workers, as retired workers resettlement. Employees who are less than five years away from the retirement age can be retired early upon their own application.
Arrangement of labor contract workers in bankrupt enterprises shall be handled in accordance with the Interim Provisions on the Implementation of the Labor Contract System in State-owned Enterprises and other laws and administrative regulations; and the arrangement of temporary workers shall be handled in accordance with the Interim Provisions on the Management of Temporary Workers in Nationally Owned Enterprises. If the source of the resettlement expenses of the employees of the bankrupt enterprise is insufficient, the people's government of the city or municipal district or county where the bankrupt enterprise is located shall bear the expenses in accordance with the affiliation of the enterprise.
Compensation Standards for Employees of a Bankrupt Company
Legal Basis: Enterprise Bankruptcy Law
Article 48: Creditors shall declare their claims to the administrator within the period of time determined by the people's court for declaration of claims. The wages and medical, disability and pension expenses owed by the debtor to the employees, the basic pension insurance and basic medical insurance expenses owed to the employees which shall be transferred to their individual accounts, as well as the compensations which shall be paid to the employees as stipulated by the laws and administrative regulations do not need to be declared, but shall be listed by the administrator after investigation and made known to the public. Employees have objections to the list of records, you can ask the administrator to correct; the administrator does not correct, the employee can file a lawsuit with the People's Court.
The scope of compensation for workers
According to the Enterprise Bankruptcy Law, workers can get the following compensation:
1, the company owes the workers' wages and medical treatment, disability benefits, pension costs. Wages should generally include hourly wages, piece-rate wages, funds, allowances and subsidies, but non-labor remunerative incomes and expenses for labor protection, etc. are not included in the scope of wages. In the case of executives of a company, wages are calculated according to the average wage of the employees of the company. Medical and disability benefits are the social security benefits that an employee is entitled to under the medical security system during his/her employment or the benefits he/she is entitled to due to work-related accidents during his/her employment. Pension costs are the pensions to which the employee's family is entitled after the injury or death at work.
2, the company owes the workers should be transferred to your personal account of the basic pension, medical insurance costs, if the company's gearing is high, you can also get the other when the part of the social account, but from the point of view of engaging in bankruptcy practice, transferred to the social account of the cost of the general can not get (because the social insurance in the bankruptcy law of the order of liquidation is the second place).
3. Compensation that should be paid to laborers as stipulated by laws and administrative regulations. In accordance with the "violation and termination of labor contracts and economic compensation measures" specifically include: due to the termination of labor contracts should be paid compensation; withholding, delayed wages should be paid compensation; due to the termination of the labor contract should be paid compensation; laws and regulations provide for other compensation should be paid. The said compensation shall be limited to those stipulated in the laws and administrative regulations, and the compensation paid to the workers as stipulated in the local laws and regulations shall not enjoy the right of priority compensation.
The order of payment of the income due to the employees:
The wages of the employees and the medical treatment, disability allowance, and the cost of care, the basic old-age insurance which shall be transferred to the employees' personal account, the cost of medical insurance, as well as the compensation which shall be paid to the employees as stipulated in the laws and administrative regulations.
Compensation is calculated according to the length of service:
One month's salary is paid for a full year, less than one year more than six months is calculated according to one month's salary, and less than six months is calculated according to half a month's salary, and the bankruptcy property is insufficient to settle the same order, and it shall be distributed according to the proportion. According to the labor law, the company closed down, should be given in accordance with the provisions of the employees to terminate the contract compensation, the standard: work for one year to one month's compensation (average monthly salary), if you do ten years, you should give ten months compensation.
According to the "Supreme People's Court on the trial of labor disputes cases on the application of law on a number of issues of interpretation (II)" labor relations after the dissolution or termination of the payment of wages, economic compensation, welfare benefits and other disputes, the worker is able to prove that the employer promises to pay for the dissolution or termination of the labor relations of the time for the specific date of the employer promises to pay for the date of the date of the labor dispute. The date on which the employer promises to pay shall be the date on which the labor dispute arises. If the worker cannot prove it, the date of dissolution or termination of the labor relationship shall be the date of the labor dispute.
The above is the reason I provide you with the company's bankruptcy, I hope you can enjoy!
?