Cancellation of Legal Affairs Department for External lawyer Yueyang Lin paper controlling shareholder alleged violation

Taige paper: This is done in accordance with the market and specialization direction of the legal system reform is located in Hunan province Yueyang listed company Yueyang Forest paper (market, Inquiry) (600963,SH) was founded in 1958, was one of the top ten well-known paper mills in China. Yueyang Lin Paper's controlling shareholder is Hunan Taige Paper Group (hereinafter referred to as Thai Green Paper), while the Central Enterprise China Cheng Tong Company's China Paper Investment Corporation is Taige paper's controlling shareholder. Recently, Taige Zhang Wei (a pseudonym) and King Kao (a pseudonym) have been surprised by the old state-owned enterprise, which they have worked for nearly 40 years. The matter originated from the group's recent abolition of the specialized agencies of legal affairs, and the choice of external lawyers. For this practice of Taige paper, both Hunan Sasac and Prudential General Counsel have not responded positively. and Taige paper deputy general Manager Yemong in response to the "Daily economic news" reporter said, "The reason is to do so, mainly taige paper by the central Enterprises after the merger, Enterprise Burden is still very heavy, this is in accordance with the market-oriented and professional direction of the legal system reform." "The abolition of the legal affairs of the controversy in the middle of February 2014, Taige paper general manager Huang Xin to the group including Yueyang Forest Paper, a subsidiary issued a notice, called to adapt to the market reform and development requirements, the Company intends to select external law firm as the group and the company's perennial legal counsel. After the notice issued, immediately within the company caused controversy, because the state-owned enterprises to abolish the Legal Affairs agency, the use of external lawyers to replace the company's internal legal counsel, which is suspected of violating the State Council SASAC related provisions. The information shows that the legal advisor system of State-owned enterprises is put forward along with the gradual establishment of socialist market economy system and the further strengthening of socialist legal system construction. The measures for the administration of legal advisers of state-owned enterprises have already been approved by the state-owned Assets Supervision and Administration Committee of the State Council and have been implemented since June 1, 2004. Industry insiders have described, "state-owned enterprises like a car, engineers, economists, accountants and legal advisers is the car's four wheels, the car to go forward, four wheels less than one." "Huangshu, deputy director of the State Council and the Central Enterprise Legal Forum held on January 16, 2014, revealed that at present, there are 2560 enterprises in the whole system have established the general Legal Counsel system, the group and important subsidiaries of enterprise general counsel full-time rate reached 64% and 50% Enterprise-wide system of Legal counsel team reached 18,000 people, the rate of entry of the certificate is close to 60%; the corporate rules and regulations, important decisions and economic contracts of the Central Enterprises Group and its important subsidiaries reached 96.7%, 98.1% and 98.6% respectively. According to the daily economic news reporter understand, Taige paper Legal Affairs Department was founded in 1986, the Legal advisor team also from the initial 5 people, developed to the longest 25 people. Subsequently, due to the decline in corporate efficiency and follow-up reform, and so on, reduced to the current 13 people. Prior to this, Taige paper legal work to implement a centralized delegation system, the implementation of the general Legal counsel, stationed in the company including Yueyang Forest paper, and other subsidiaries, each legal adviser phaseshould be responsible for several subsidiaries. This time, Huang Xin said, in order to adapt to market-oriented reform, to be based on a subsidiary of 3 regions to hire relevant law firms, services, including day-to-day legal services, other litigation cases, cleaning up the arrears of cases by reference to industry standard fees and negotiations. "Where is this reform?" Reform is to reduce costs and improve efficiency, this way of external employment, not only the cost is not reduced, the benefit has not been improved, but it makes the enterprise bear heavier costs. Zhang Wei said. "The cost we can calculate before and after the real reform is whether it increases or decreases." "Taige Paper Group of the original legal affairs of the reporter said," Now only 13 people, the annual total wages (including performance awards, five risks a gold) only more than 1 million yuan, responsible for daily contract review, participation in contract negotiations, bidding and other day-to-day legal affairs, Contractors all litigation cases and legal service fees are not counted the cost of agency fees, clean up the annual bad debts (more than 10 million yuan) also do not charge. "The above mentioned that if the outsourcing of legal affairs, including the existing law staff of 7 to 9 people, plus social law firms, can calculate and evaluate: 3 Social law firm legal Adviser annual fee of about 200,000 yuan, Coupled with the attorney's agency litigation cases and the handling of debts of the case of the risk of commission charges will not be less than 3 million yuan (reference to the 2013 Office of Legal Affairs cases and the withdrawal of arrears), coupled with the original 7 to 9 of the wages, the total will not be less than 4 million yuan. "We must have considered the cost of reform," Yemong told reporters. "Suspected breach of the SASAC regulations at the same time, a close to Taige paper management, said the reporter, paper enterprises billion large contract, including procurement and sales, mergers and acquisitions and other links. External lawyers have a lack of understanding of the actual production, operation and sale of the enterprise. Taige paper The original Legal Affairs Department provided to the State Council SASAC's reporting material shows that in the past three years, the group's Legal Affairs Department, in addition to the review of contracts and litigation and other work, has made some achievements in cleaning up bad debts and arrears, including the recovery of 15.27 million yuan in 2011, 2012 and 2013 respectively, 10.13 million yuan and 13 million yuan. "We are not opposed to trying to operate the legal affairs as a market-oriented operation, but the aim should be to further strengthen the management of enterprise legal affairs institutions and enhance the professional quality and management level of legal affairs personnel." Taige Paper Original Legal Affairs department Personage said. In addition, Taige paper related people also believe that the abolition of the practice of legal Affairs of the specialized agencies violated the State Council 2004 issued the "state-owned enterprises Legal Counsel management measures." This method stipulates that state-owned Assets supervision and administration institutions and state-owned enterprises should establish and improve the legal system of corporate counsel, and enjoy the right to make comments and suggestions on damaging the legitimate rights and interests of the investors and violating the laws and regulations. In addition, this method also stipulates that the enterprise Legal Affairs Agency, is the enterprise set up the specialized undertaking enterprise Legal Affairs work the Function department, is the enterprise Legal Adviser's practice organization."We are not violating the rules, but to strengthen the construction of corporate legal advisers, we withdraw the legal Affairs Department, but there are legal advisers, roughly will retain 7 to 9 people, summed up in the Enterprise Assets Operations department or office and other departments, and then join the outside law firm, which is in accordance with the market-oriented, professional direction of reform. "said Ye. "All reform of state-owned enterprises must be based on law." State-owned enterprise Legal Adviser management measures, state-owned enterprises must set up an independent legal Affairs agency, Legal Affairs agencies assume the dual functions of supervision and service, not just service functions. A Taige paper group insiders said. "Social law firm is a profit organization, the enterprise production, management, sales lack of understanding." It is difficult to do a very meticulous legal work, including contract review, and risk prevention and control, such as a lot of meticulous groundwork. "Zhang Wei said. "It can be said that we are the first state-owned enterprises dare to do so, the abolition of their own years of legal counsel, and then to external lawyers." "Taige paper insiders said," the external lawyer's state-owned enterprises, SASAC Legal Adviser management method stipulates that enterprises in the internal personnel are missing when the external lawyer can be hired, but also by the legal affairs agencies under the leadership of the general counsel to recruit and manage. "This thing, from the group point of view, Taige paper equivalent to our level three companies, although the following reports, some of the situation I still do not know, I can not take the" state-owned enterprises Legal Adviser management measures "to carry out the evaluation. "March 4, China Cheng Tong Group director, general Counsel Tang Guoliang to the daily economic news," said reporters. "Sasac State Enterprise Legal Advisor management Measures I have been involved in drafting, and now the local state-owned enterprises are basically established." However, I do not agree with the abolition of the internal legal Counsel and the full use of external counsel for Alternative practice. "March 4, Liu Junhai, director of the Institute of Commercial Law, Renmin University of China, said," Taige paper to abolish the specialized agency of Legal Counsel, retain legal counsel and external law firms are playing the edge of the phenomenon. "The parties to debate whether the violation of data shows that last September 26, Taige paper launched the contract requirements, the group of the original legal Affairs of all the law officers and the group signed a two-year legal contract, the contract expires, all service personnel from the group completely stripped." Two years later, all legal affairs of the Group were held by external social lawyers. However, the contract was rejected by all legal personnel of taige paper. Subsequently, on November 28, 2013, Huang Xin issued a decision on the abolition of the Legal Affairs Department to implement the socialization, marketization and specialization of the transformation of legal services, and requested the abolition of the Professional Department of Legal Affairs. As a result of dissatisfaction with this decision, taige of the original legal Affairs of the Department of the National capital of Hunan province Sasac and the State Council to make complaints. "Taige paper has been a model of state-owned enterprises in Hunan Province by law, and has been a model for many state-owned enterprises." "Taige paper the original legal Affairs Department King Kao to reporters," group legal advisor to Hunan Province Sasac every year, because for Taige paper legal mattersThe performance of the agency is understood. "Information shows that December 2, 2013, Hunan Sasac in the Taige paper Legal Affairs Department complaint submissions, to reflect the situation, wrote" The situation is true, the State Council SASAC attaches great importance and coordinated resolution. " King Kao Introduction, in the reflection of the situation, Huangshu and deputy director made clear instructions, request to investigate and deal with, SASAC Law Bureau subsequently in writing notice form, request Cheng Tong Group before December 27, 2013 must be corrected in place according to law. However, in view of the matter will have a turnaround, Huang Xin again reported to the SASAC's request for rectification of the Thai Sutra 2013 (150), the situation report. Huang Xin said in the document, the relevant legal staff literacy, poor combat effectiveness, so that the company suffered losses, so to reform. "Huang Xin said that the group's legal literacy of the whole team is not high, the handling capacity is not strong, are not investigated on the said." "Taige paper group close to senior executives told reporters. "Are they doing the results that reflect the truth of the situation?" In fact, Hunan Sasac was cheated, after the investigation is completely denied. "March 4, Huang Xin to the daily economic news," the reporter said. "Because they are now the central enterprises holding, the abolition of Legal counsel is not a violation of rules and regulations, I do not know." March 4, Mao, director of Hunan Provincial Sasac Regulation department, told reporters. "The group general manager is determined to abolish the Legal Affairs organization, deep reason we have been not thorough." "Insiders close to Taige's paper management said to reporters. "The reason is to do so, mainly taige paper by the Central Enterprise Cheng Tong Mergers and acquisitions, corporate burden is still very heavy, this is done in accordance with the market-oriented and professional direction of the legal system reform." Taige Paper deputy General manager Yemong to reporters. "We intend to invite outside law firms to sign contracts to really strengthen the legal system, and they are fully competent in contract review and economic decision-making to safeguard the safety of state-owned assets." "Yueyang Forest paper to borrow again by subsidies to avoid wearing a hat recently, Taige paper group of reforms to cause market concern, and as one of the main Yueyang forest paper, in 2011 by the central Enterprises in China Paper Investment Corporation (hereinafter referred to as China paper) restructuring Taige paper, the status quo? A few days ago, "Daily economic news" reporter to the company after the investigation found that the Chinese paper, Yueyang forest paper and failed to achieve a reversal, still in dependence on subsidies to turn the corner. The introduction of strategic investors Yueyang Forest paper is the predecessor of Yueyang Mill, due to close to Port, North Pillow Yangtze River Golden Waterway, west of the Vasty 800-hole court, east of the Beijing-Guangzhou Railway arteries, and Zhuhai-Beijing Expressway and 107 national road connected, land and water transportation is very convenient. In addition, the large area of Dongting Lake used for papermaking raw materials reed, location resources are obvious. "Yueyang Forest paper is one of the top ten famous mills in China, with unique resource advantages and leading technology." February 26, Taige paper Group, a former middle-level Junru (alias) to the "Daily economic news" reporter introduced, the middle-tier in Taige paper group work moreYears。 Referring to the brilliance of the Yueyang paper mill, Junru said, "Yueyang Mills have been directly owned by the State ministry management, it is also the Shandong Chenming (market, inquiry), including many of the teachers." Since then, Yueyang paper mills and other enterprises merged into Hunan Taige papers Group, Hunan province Sasac has become the key state-owned enterprises. Data show that the current Taige paper group total assets reached 22 billion yuan, with including Yueyang Forest paper, 13 subsidiaries, has formed a pulp manufacturing as the main business, covering the port transport, real estate development and other businesses of large enterprise groups. From 1998 to 2007, Taige Paper Group experienced a rapid expansion, in the former chairman of Hyundai attempted during the helm, has vigorously promoted the "forest pulp and paper integration." After the 2008 financial crisis, the paper industry into a trough, Taige paper group debt expansion Sequelae concentrated release, Hyundai attempted also due to exit audit exposed problems behind bars. 2010, China Cheng Tong Holding Group Co., Ltd. (hereinafter referred to as Cheng Tong) restructured Taige paper Group, Cheng Tong Group of China paper to 2.5 billion yuan officially into the Taige paper group, Hunan province Sasac ranked second largest shareholder status. "At that time the international and domestic paper market depression, coupled with the early expansion of debt, so the introduction of strategic investors." February 26, Taige paper group Insiders on the Daily economic news reporter revealed. The data also shows that China Paper Investment Corporation controls three paper industry listed companies, including Yueyang Forest paper, Crown Hao High-tech (market, inquiry) and Guangdong-China Package B (Market, inquiry), the total paper production capacity of 2.4 million tons, asset size of 32 billion yuan. Last year, by subsidy to profit January 16, Yueyang forest paper released earnings forecasts, so that investors relieved, because the Yueyang forest paper in 2013 again, will face the fate of hat-cap. The announcement said that the company is expected to achieve a profit of 2013, achieving net profits of 10 million ~3000 million. Reporter noted that the Yueyang forest paper in recent years has been in a loss, 2013 is also dependent on government subsidies to the profit. Earnings show, Yueyang forest Paper 2011-year net profit of 154 million yuan, 2012 net profit loss of 218 million Yuan, 2013 years ago three quarterly loss 130 million yuan. It is worth noting that the Yueyang forest paper in the performance of the year lower, the government subsidy has been rising year by year. January 8, Yueyang Forest paper announced that a large amount of policy subsidies amounted to about 147 million yuan, the subsidy of 138 million yuan will be included as non-operating income into the company's 2013 profit and loss. For the reasons for the decline in performance, Yueyang Forest paper has said that because of intensified market competition, slowing demand growth, coupled with factors such as the rise in production factors, so that the overall economic benefits of the company decline. "Cheng-Tong, the production of Yueyang forest paper basically maintained, but the enterprise benefit is declining year by year, the loss of 2013 is due to government subsidies, coupled with the debt issued before barely maintain the deficit." "A management familiar with the Yueyang forest paper said to the daily economic news reporter. Financial data show, Yueyang ForestPaper 2012 total debt amounted to 11.2 billion yuan, 2013 three quarter of the end of the total debt of 11.7 billion yuan, the asset-liability ratio of 69.2%, 2013 three quarter of the end of the financial costs of 360 million yuan, is the highest of three costs. In a March 4 announcement, Yueyang Forest paper said again that it intends to issue a 600 million-yuan short-term financing bond to repay bank borrowings and replenish liquidity. "After the merger, the corporate burden is still heavy, so the group has to carry out a series of reforms to streamline the department and reduce costs." Taige Paper Group deputy general manager Yemong said. "No scientific research personnel to improve the process equipment, research and development of high value-added products, not adapt to market changes, enterprise products unchanged, how can not lose money, the key is to retain talent, can not be said to be a loss of market reasons." The executives said.