Recently, I handled several cases of private enterprises, and I really feel that private enterprises are very difficult. This difficult situation of private enterprises, even the enterprises themselves may not be able to accurately grasp the reasons, but the difficulties are real. It was very uncomfortable to see their helpless faces and eyes. However, as lawyers, what we can do is also very limited, and we can only resort to words outside the case, hoping that the relevant parties can build and consolidate the protection mechanism for private enterprises from a deeper institutional level, so as to resolve the hardships and knots in the hearts of many private entrepreneurs. The series of dilemmas faced by private enterprises makes private enterprises helpless on the one hand, and on the other hand, it also makes many entrepreneurs and future entrepreneurs who are on the road to entrepreneurship stagnate.
The first is the "investment dilemma". In reality, many private enterprises have been or are deeply dragged down by investment difficulties. If you do not invest abroad, you can still live a calm life, and once you are not careful about foreign investment, you are often trapped in it and it is difficult to extricate yourself. The enterprise we want to talk about, originally operated very well in the south, after more than ten years of hard work and accumulation, it has become a well-known local home furnishing enterprise. If it weren't for investing somewhere in the north, it would still be very good now. However, the thing happened a few years ago to invest somewhere in the north. Speaking of the investment process, the BOSS of this company is now remorseful and deeply resentful that he was not cautious enough at that time, so that the company is now mired in debt. At that time, the company operated smoothly, and was introduced by a well-known person in a certain place in the north to invest in the place to set up a factory. At the beginning of the negotiation, all parties were indeed holding very good expectations, and the local leaders visited the factory in the south many times to investigate, exchange and learn; the boss of the enterprise also took the team to the place many times to investigate, and negotiated with the relevant departments many times. In between the staggered funds, with good expectations, the two sides signed an investment agreement. However, good things may always encounter setbacks. Soon after the signing of the agreement, the relevant local departments informed the enterprise that the land use indicators were not enough, and the land could not be supplied according to the amount of land agreed in the agreement, and it was not known when the land would be available. Such a notification is tantamount to a thunderbolt on a sunny day, but the project has been started, not to say that it can be withdrawn. After many consultations, the relevant departments informed the enterprises to supply land while building, so that there would be no delay. However, since then, with the adjustment of the national land policy, land has not been available. Some of the factories have been built, because due to the impact of the typhoon, some of the factories that have been built have been blown down by the typhoon. Land can not be supplied in time, resulting in plant construction can not be carried out as scheduled, and some of the factories that have been built have also "illegally occupied" several acres of land. If the construction continues, the land supply will not come; if it does not build, the input and cost in front of it will be high, and it will actually bear huge losses. In the following years, they communicated with the relevant local departments about land supply and project promotion, and the leaders changed wave after wave, but the land supply matter has not been fruitful. Because the project dragged on for too long, all parties lost patience and finally had to meet in court. Through multiple links such as hearings, reconsiderations, and litigation, it takes five or six years in a flash. Although the court ultimately gave a verdict, after all these years, businesses and entrepreneurs themselves have been exhausted. Enterprises have also spent a lot of time, energy, manpower and investment in nearly ten years, and it is already very ethereal to make up for the passing years and shine again.
The second is the "debt quagmire". The problem of funds has always been an important aspect of the development of private enterprises, and many private enterprises are often in the "debt quagmire" as a result. Relevant departments have also noted the real impact of financing and debt on private enterprises, so in the various support policies for private enterprises, financing and debt resolution are also taken as an important part of accurate support. In a case of transfer of qualifications, the parties were found to be jointly and severally liable for providing security. Although there was indeed a dispute over the validity of the contract, and we represented the second instance, the court of second instance held that since the issue of contract validity was not raised in the first instance, the issue of contract validity was not the key to the case, and further upheld the first instance judgment. In the immediate enforcement proceedings, although the amount was modest, the enforcement court had seized all its accounts before the notice of enforcement was issued. The seizure alarmed the bank, which immediately contacted the legal representative of the person concerned and demanded that measures be taken, otherwise the corresponding loan would be withdrawn to deal with the possible risk. For this sudden emergency, the anxiety and helplessness shown by the legal representative of the party concerned seems to have reached the brink of collapse. In order to alleviate the anxiety of the parties, we actively contact the court, the opposing lawyer, and the opposing party, hoping that everyone can negotiate and not drag the parties into an irreparable situation. After many consultations, the two sides almost reached an implementation settlement agreement, but in the end they could not sign the agreement on the same day. It is conceivable that in the days that followed, the pressure on the parties was by no means easy. This kind of debt quagmire, as the anecdotal slang says, "a penny is difficult to die a hero", the pressure on private enterprises is too great to describe. The existence of this debt quagmire, the pressure and fright on private enterprises, is felt by almost all private enterprises facing the same difficulties.
Again, there is the shareholder deadlock. Shareholder deadlock, or contradictions between shareholders, exists in the process of start-up, development, growth and even liquidation of private enterprises. Despite the diversity of forms, the essence is caused by discord between shareholders. For private enterprises, poor development of enterprises may lead to shareholder deadlock, and when the operating efficiency is very good, it is easy to produce shareholder deadlock. Because of the discord between shareholders, in the state of intensification, it is not uncommon for official seals and business licenses to be robbed. In practical cases, some shareholders together exclude other shareholders from the company's operations, and shareholders oppose each other and form factions in order to gain control of the company, deliberately suppressing other shareholders... Wait a minute. In the process of partnership operation and in the process of company operation and management, almost every link and every matter exists in this kind of dispute. The discord between shareholders, although it is already very obvious on the surface, it is not easy to meet the criteria of compulsory dissolution according to law. The high standards and strict requirements of compulsory dissolution in accordance with the law, in turn, further deepen and strengthen the frequent contradictions between shareholders. Because, under the standard of compulsory dissolution, shareholders will naturally protect their rights and interests through more judicial procedures and legal paths in order to protect their legitimate rights and interests, and the frequent litigation has further strengthened the contradictions between shareholders. Thus, with the passage of time, the good expectations among shareholders are worn away, leaving more resentment and competition, and the knots that were easy to unravel become tighter and tighter to become dead knots.
It is true that whether it is an investment dilemma, a debt quagmire or a shareholder deadlock, many private enterprises have to face in the process of development and growth. Not only that, but these aspects are still just the tip of the iceberg in the many dilemmas faced by private enterprises. In the worst case scenario, there may be more dilemmas intertwined tightly around private enterprises, so that non-bankrupt restructuring cannot be saved. The "chain set" linked by these dilemmas requires that all private enterprises take seriously. Whether these dilemmas can be avoided and whether they can be resolved in the early stage of their emergence is deeply necessary to earnestly listen to lawyers' suggestions and plans. For experienced lawyers, these dilemmas can be prevented and eliminated by clarifying their respective rights and obligations, through clear agreements and agreements, and by avoiding possible risks.
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