Restructuring of the enterprise (topic 6)

1.

Topic 6: "Restructuring of the enterprise"
1. The essence and forms of enterprise restructuring
2. Forms and general preconditions of reorganization
3. Reorganization of enterprises aimed at consolidation (mergers, acquisitions,
acquisitions)
4. Division of enterprises

2.

1. The essence and forms of enterprise restructuring
In world practice, one of the most common ways of financial recovery of enterprises is
restructuring. This term is used quite often in Ukraine, but is interpreted ambiguously.
Restructuring is sometimes understood as the simple division of a large-scale
enterprise into components, ie the fragmentation of its structure and the creation of
several autonomous structural units, or its transformation into another entity. In a
broader sense, restructuring - is a set of reorganization measures aimed at creating
the preconditions for the company out of crisis and ensuring its further development.
In the Law of Ukraine "On restoring the solvency of the debtor or declaring him bankrupt"
№ 2343-12 restructuring means "implementation of organizational, economic, financial,
economic, legal, technical measures aimed at reorganizing the enterprise, in particular by
dividing it with the transfer of debt to a legal entity that is not subject to reorganization, if
provided by the reorganization plan, to change the form of ownership, management,
organizational and legal form, which will contribute to the financial recovery of the
enterprise, increase the volume of competitive products, increase production efficiency and
meet the requirements of creditors. As can be seen in this definition, restructuring involves
the use of financial measures, which was not the case in the previous definition.

3.

Foreign experience shows that in order to increase their
profitability in the future, companies often carry out
"precautionary" restructuring in order to strengthen their
financial position in the future. Therefore, it is advisable
to consider restructuring in a broader sense, as a process
of preparation and implementation of programs of
comprehensive change in the enterprise, in order to
increase its market value. The need for constant
restructuring of the enterprise is caused by the instability
of the market environment, competition between
manufacturers, suppliers, and firms that produce
substitute products, etc. Depending on the depth of the
crisis at the enterprise, the specifics of the industry and
the general economic environment, restructuring may
cover either all areas of the enterprise, or some of them
separately.

4.

• The restructuring process can be seen as a way
to remove the contradiction between market
requirements and outdated logic of the
enterprise.
• Restructuring of the enterprise is interpreted as
the implementation of organizational and
economic, legal, technical measures aimed at
changing the structure of the enterprise, its
management, forms of ownership, organizational
and legal forms, as the ability to lead the
company to financial recovery, increase
competitive output, increase efficiency.

5.

• The purpose of the restructuring is to create full-fledged business entities
capable of functioning effectively in the transition to a market economy
and produce competitive products that meet the requirements of
commodity markets.
Thus, the restructuring procedure can be defined as a set of measures aimed
at restoring the sustainable technical, economic and financial viability of
enterprises.
The task of
restructuring
to ensure the survival of
the enterprise as soon as
possible
to restore the
competitiveness of the
enterprise in the market

6.

The main areas of restructuring are:
• improving the structure and management
functions,
• overcoming the backlog in technical and
technological aspects of activity,
• improving marketing and financial and economic
policy and achieving on this basis the growth of
production efficiency, reduction of production
costs,
• improving the financial and economic
performance,
• meeting the needs of consumers.

7.

The nature and features of restructuring processes depend on
the type of restructuring. Depending on the various characteristics
(objectives, scope, timing and other characteristics), there are many
classifications of this process.
The restructuring process begins with a new definition of the
company's goal (from the desire to maximize profits to maximize
company value) and a reorientation of the overall management strategy
of the company (from meeting the requirements of the central plan to
meeting customer needs).

8.

Strategic
Organizational
and legal
Operational
The main types of
restructuring
Management
Technical
"Comprehensi
ve"

9.

Operational restructuring
• The operational restructuring of the enterprise
(organization) solves two main problems: ensuring
liquidity and significantly improving the results of its
(her) activities. The period of operational restructuring
lasts about 3-4 months.
Strategic restructuring
• Strategic restructuring of the enterprise (organization)
ensures its long-term competitiveness. To achieve such
competitiveness it is necessary to determine the
strategic goal of the enterprise, develop a strategic
concept of development, as well as areas and tools for
achieving this goal.

10.

Organizational and legal restructuring
Organizational and legal type of restructuring is
characterized by the processes of commercialization,
corporatization, change of organizational structure
and the owner of state enterprises.
Management restructuring
Management restructuring is associated with the
training and retraining of personnel with a focus on the
competitive operation of the enterprise, changing its
organizational structure, management, technology,
innovation and marketing policy.

11.

Technical restructuring
Technical restructuring is associated with ensuring the
state of the enterprise, at which it reaches the
appropriate level of production capacity, technology,
know-how, management skills, staff qualifications,
efficient supply systems and logistics, ie all that allows
the company to reach market with efficient and
competitive products.
"Comprehensive" restructuring
"Comprehensive" restructuring includes the development of
a new organizational structure, appropriate product, labor,
technical and technological policies, changes in
management, organization and more. Restructuring of the
enterprise in this way lasts mostly up to three years.

12. Depending on the nature of the measures taken, there are the following forms of restructuring:

Restructuring of
production
provides for changes in the organizational and
industrial sphere of the enterprise in order to increase
its profitability and competitiveness
change of management of the enterprise;
introduction of new, progressive forms and methods of
management;
diversification of product range;
improving product quality;
increase the effectiveness of marketing;
reduction of production costs;
reduction of the number of employees at the enterprise.

13.

Asset restructuring
provides a number of measures to change assets
sale of non-current assets;
sale of surplus equipment, stocks of raw materials, etc .;
sale of separate divisions of the enterprise;
reverse leasing;
implementation of certain types of financial investments;
refinancing of receivables.

14.

associated with changes in the structure and size of
equity and debt capital, as well as changes in
investment activities of the enterprise
Financial
restructuring
debt restructuring to creditors;
obtaining additional loans;
increase of the authorized capital;
freezing of investments.

15.

Corporate restructuring
provides for the reorganization of the enterprise,
which aims to change the owner of the statutory fund,
the creation of new legal entities and (or) a new
organizational and legal form of activity
partial or full privatization;
division of large enterprises into parts;
separation from large enterprises of certain subdivisions, in
particular objects of social and cultural life and other non-core
subdivisions;
joining others or merging with others, more powerful under the
enterprise.

16.

17. 2. Forms and general preconditions of reorganization

On formal grounds, three types of
reorganization are considered:
aimed at the consolidation of the enterprise
(mergers, acquisitions, acquisitions);
aimed at crushing the enterprise (division,
separation);
without changes in the size of the enterprise
(transformation).

18. Reorganization of enterprises that have accounts payable is carried out in compliance with the requirements for debt transfer:

• the transfer (transfer) of the debtor's debt to another
person is allowed only with the consent of the creditor;
• the new debtor has the right to raise against the
creditor's claim all objections based on the relationship
between the creditor and the original debtor;
• the guarantee and pledge by a third party shall be
terminated with the transfer (transfer) of the debt, if
the guarantor or the mortgagor has not agreed to be
responsible for the new debtor;
• receivables and debt transfers based on a written
agreement must also be made in writing.

19.

Restructuring of enterprises (organizations) is carried out
after their entry in the Register of insolvent enterprises
and organizations and conducting an in-depth analysis of
financial and economic activities by specialists who draw
conclusions about ways of recovery and propose a
concept of economic activity.
The draft restructuring plan should define
economic justification for
its implementation
proposals on forms and
methods of restructuring
ways to solve financial,
social and other
problems related to
restructuring

20.

The procedure for restructuring the enterprise
(organization)
The concept of enterprise development is developed depending on
the conditions of its economic activity on the following issues:
organizational, production, investment, economic, foreign
economic activity, personnel management, social and
environmental.
The development of the concept should be based on a clearly
defined and articulated goal of enterprise restructuring and
include the following issues:
- analysis of external and internal factors influencing the economic activity of the
enterprise;
- choice of option (type) of enterprise restructuring;
- justification of strategic development of the enterprise;
- assessment of the possibility of overcoming difficulties during the restructuring
period;
- development of a business plan for a restructured enterprise.

21.

Due to the different financial and economic
situation, specifics of activities, strategic goals and
objectives of enterprises, all restructuring projects
are unique and designed to be implemented only in
a particular entity, but we can identify the main
objectives in the restructuring of the enterprise:
1. Modernization, replacement or reduction of the production
and economic base of the existing enterprise.
2. Significant change in the management system and use of
human resources of the enterprise.
3. Qualitative change of relations with consumers and / or
creation of a new target group of clients.

22.

The restructuring program is designed to
synthesize the results of analytical work and on their
basis to clearly define the objectives, ways, means,
conditions for achieving the goals, future activities,
resources and their sources.
A comprehensive restructuring program is useful
not only for companies on the brink of financial and
economic crisis, but also quite successful. It helps to
understand the need for important management
decisions, to outline strategic directions for production
development. Implementation of restructuring will help
to improve economic and financial and economic
activities, increase the efficiency of the enterprise

23.

The development of the restructuring program involves the following actions:
• 1. Carrying out of the complex financial and economic analysis of a
condition of the enterprise, including with detailing on separate
structural divisions.
• 2. Implementation of comprehensive business diagnostics of the
enterprise (analysis of development strategy, marketing and sales policy,
accounting policy, production, investment policy, organizational and
managerial structure, etc.).
• 3. Development of the forecast financial and economic model of
enterprise development for 3-5 years without restructuring.
• 4. Identification of the main advantages and problems of the enterprise,
development of proposals for optimizing the state of the enterprise
(financial recovery, reengineering, modernization and possible sources
of its financing, etc.).
• 5. Development of several alternative forecast financial and economic
models of enterprise development, taking into account the main
possible measures and risks, determining the basic option.
Development of a final document for the practical implementation of the
project.

24.

The choice of restructuring option is based on the
criterion of assessing the real market opportunities
of structural units of the enterprise
the degree of development of
new markets, which reflects how
quickly the unit can change the
structure of sales and overcome
barriers to entry into new
markets
the level of specific production
knowledge and technology, which
characterizes the level of application
of specific scientific and technical
knowledge in the production activities
of the unit, which must abandon the
entire range of products manufactured
previously

25. GENERALLY USED CATEGORY OF UNDERGANCED OR LIQUIDATED ENTERPRISES

1. An enterprise that is easily reorganized
The division quickly enters new markets (easily sells its products).
The share of specific production knowledge was small. These
conditions facilitate reorganization, and the unit can be quickly
transformed into an independent enterprise.
2. Enterprises that are potentially subject to reorganization
A unit with a great opportunity to develop new markets, but the level
of specific production knowledge and technologies for independent
existence is quite significant, which makes it difficult to change the
product range and, accordingly, the production process.
3. An enterprise that is difficult to reorganize
A unit for which the development of new markets is difficult, but which has
a high level of specific production knowledge and technologies, without
which the structure of cooperation and sales within the association is
impossible.

26.

Restructuring of enterprises is ensured by appropriate
organizational and economic measures
replacing the management of the enterprise
increasing the effectiveness of marketing;
reducing production costs
partial or full privatization
introduction of new progressive forms and
methods of management
partial closure; conducting bankruptcy
proceedings
reduction of the number of employees at
the enterprise with the provision of social
benefits in case of dismissal
division of large enterprises into parts
temporary cessation of capital construction
and sale of unfinished construction projects
separation from enterprises of non-core
structural units
sale of surplus equipment, materials and
components, etc.
allocation of state-owned enterprises or
special productions; liberation of
enterprises from the objects of social and
cultural life
deferral or write-off of debts; search for
investments and investors

27.

• As a result of restructuring measures there are
positive changes in the organization of the
enterprise, the development of methods of
managing it in the areas of sales, pricing,
financial, investment, personnel policy.
• Restructuring of the enterprise is a long
process carried out with the help of specialists
of various profiles and aimed at improving the
efficiency of the internal potential of the
enterprise and adaptation to new market
conditions.

28. 3. Reorganization of enterprises aimed at consolidation (mergers, acquisitions, acquisitions)

The main forms of reorganization that lead to the consolidation of enterprises are:
merger of several enterprises into one, merger of one or more enterprises into one, as
well as their mutual acquisition.
These forms of reorganization are used as reorganization, where the sanatorium takes
over not only the obligation to pay the debt, but also control over the debtor, which
loses its legal status as a result of accession, acquisition or merger with the
sanatorium.
Sanatorium
motivation
Synergistic effect. The desire to acquire licenses, patents, know-how, which are at the
disposal of a company in crisis. Getting a reliable supplier of factors of production.
Acquisition of assets at a price lower than their replacement cost, transfer of
technological and managerial knowledge and skills (technological transfers), etc.
Diversification of assets and activities to reduce risks. Prevent the capture of the
company by large corporate "predators" and maintain control over the company.

29.

• A merger means the termination of two or more
enterprises as legal entities and the transfer of their
assets and liabilities (property rights and obligations) to
the successor created by the merger. The balance sheets
are consolidated.
• Merger means the termination of one enterprise as a
legal entity and the transfer of its assets and liabilities
(property rights and obligations) to another enterprise
(successor).
The main difference between mergers and acquisitions is
that in the case of a merger, all property rights and
obligations of several legal entities are concentrated in the
balance sheet of one newly created company, and in the
case of a merger in the balance sheet of an existing
company.

30.

31.

In antitrust law, most countries distinguish
horizontal merger
(accession, absorption)
this combination of two firms that
produce the same type of goods or
provide the same services is
controlled under antitrust law.
vertical merger
it is a merger of one enterprise
with its supplier of raw
materials or consumer of
products
The merger of several enterprises into one means the merger of an enterprise
(or several enterprises) that is in financial crisis with another, financially stable
enterprise (several enterprises).
In the event of a merger, all property rights and obligations of each of them
are transferred to the newly created enterprise.

32. The merger restructuring program may look like this

At the first stage, the program provides for the transformation of the association into
an enterprise, creating a vertical organizational specialized structures.
At the second stage it is planned to carry out a set of restructuring measures:
• Separation of non-core structural units that do not participate in a single
technological process.
• Increasing production.
• Application of flexible tariff policy.
• Reorganization of technological and technical infrastructure.
• Network reorganization.
• Creation of an automated information and computer system.
• Reforming the management system at all levels of the enterprise.
• Reforming the financial resources management system.
• Cost reduction.
• Reorientation of employees' worldview to work in a competitive environment.

33.

Порядок реорганізації підприємств шляхом злиття та приєднання
Етап
Етап 1.
Етап 2.
Етап 3.
Етап 4.
Етап 5.
Етап 6.
Етап 7.
Етап 8.
Злиття
Приєднання
Прийняття рішення про реорганізацію вищими органами підприємств, узгодження проекту
реорганізаційної угоди
Укладання угоди про умови проведення реорганізації
Перевірка фінансово-господарської діяльності та оцінка вартості підприємств, що
реорганізуються
Проведення засновницьких зборів та Обмін корпоративних прав підприємств, які
підготовка засновницьких документів приєднуються, на письмові зобов’язання про
правонаступника
видачу відповідної кількості корпоративних прав
підприємства, до якого здійснюється приєднання
Обмін
корпоративних
прав Прийняття
рішення
загальними
зборами
підприємств, що реорганізуються, на підприємства, до якого здійснюється приєднання,
письмові зобов’язання про видачу про внесення відповідних змін до статуту та
відповідної кількості корпоративних державна реєстрація цих змін
прав підприємства правонаступнику
Державна
реєстрація
юридичної Обмін письмових зобов’язань на корпоративні
особи, яка виникає в результаті права підприємства, до якого здійснюється
реорганізації
приєднання
Складання та підпис передатних балансів між підприємствами-попередниками та
правонаступником
Виключання підприємств-попередників із державного реєстру

34.

• When carrying out a reorganization by merger
or acquisition, a transfer balance is drawn up this is the balance sheet of the enterprise
being reorganized on the day of its
termination. The transfer balance shall be
valid from the acceptance certificate and shall
be signed by the directors and chief
accountants of the enterprise to be
reorganized and the successor enterprise.

35. 4. Division of enterprises

Unbundling of the enterprise (division, separation) is resorted to in the
following main cases
If the company has many unprofitable industries along with profitable
sectors
In the case of a high level of diversification of the spheres of activity
of enterprises subject to rehabilitation.
When it comes to pre-privatization training of state-owned
enterprises in order to increase their investment attractiveness,
By decision of the antitrust authorities.
Forced separation does not apply in the case of:
a) impossibility of organizational or territorial separation of enterprises, structural
subdivisions or structural units;
b) the presence of close technological connection of enterprises, structural units
or structural units (if the share of internal turnover in the total gross output of the
enterprise is less than 30%).

36.

the main purpose of the
expansion of the enterprise
there is a separation of
rehabilitatively capable production
units (productions) for their
financial recovery and registration
as independent legal entities.
This direction of reorganization allows us to focus on certain
strategic areas of the enterprise, guided by the principle: it is
economically more expedient to "keep on the surface a viable
part of the debtor than to drown the whole enterprise."

37.

Reorganization by division is that the legal entity ceases its activities, and on its basis
several new enterprises are created, registered in the form of independent legal
entities.
As a result of the division of the enterprise, the property rights and obligations (assets
and liabilities) of the reorganized enterprise are transferred to the newly created
enterprises according to the distribution act (balance sheet) in the relevant parts.
Reorganization by separation is the separation from the existing enterprise of one or
more structural units, as well as on the basis of the structural unit of existing
associations in accordance with the decision of their labor and with the consent of the
owners or their authorized body.
During the separation of one or more new enterprises from the enterprise, the
property rights and obligations of the reorganized enterprise are transferred to each of
them according to the distribution act (balance sheet) in the relevant parts.
Transformation is a method of reorganization that involves changing the
form of ownership or organizational and legal form of a legal entity
without terminating the economic activity of the enterprise. When one
enterprise is transformed into another, all the property rights and
obligations of the former enterprise are transferred to the newly
established enterprise.

38.

Reorganization of enterprises by division is carried out in the following order.
Stage 1. Making a decision on reorganization.
Stage 2. Concluding an agreement between the founding groups on the terms of
the division.
Stage 3. Analysis of financial and economic activities and inventory of property of
the enterprise to be divided.
Step 4. Exchange of corporate rights of enterprises to be divided into written
commitments to transfer the appropriate number of corporate rights of the
created enterprises.
Stage 5. Adoption by the constituent assembly of each
the enterprise being created, the decision on the creation and approval of the
founding documents.
Stage 6. State registration of enterprises formed as a result of division.
Step 7. Exchange of written commitments for corporate rights of enterprises
created as a result of the division.
Stage 8. Compilation and signing of distribution balances between the predecessor
company and successors.
Stage 9. Exclusion of the reorganized enterprise from the state register.

39.

• Upon separation from the existing enterprise, one or more
structural subdivisions are separated, which are registered
as new enterprises. The property rights and obligations of
the reorganized enterprise are transferred to each of the
successor enterprises according to the distribution balance
in the relevant parts.
• Upon separation, the reorganized enterprise continues its
financial and economic activities and is not excluded from
the state register, but only changes are made to the
constituent documents in accordance with applicable law.
• During the division and separation, part of the property
rights and obligations may be transferred not to new
enterprises, but to already operating entities.

40.

• When enterprises are unbundled, a distribution
balance sheet is drawn up - this is the balance sheet
of an enterprise that is reorganized by division or
allocation on the day of its termination. It reflects the
separate items of assets and liabilities distributed
between it and the successor companies.
• The distribution balance is drawn up by the
commission on termination of the legal entity (in case
of division) or by the commission on separation (in
case of separation of the enterprise).
• The distribution balance is approved by the
participants of the legal entity or the higher body that
made the decision to terminate (allocate) it.

41.

• Transformation is a method of reorganization, which involves
changing the form of ownership or organizational and legal form
without terminating the economic activity of the enterprise.
• The transformation is carried out in order to bring the legal form of
organization of economic activity in line with the internal and
external conditions of doing business. The reasons for the
reorganization of the enterprise through transformation may be:
• change of tax legislation;
• the need to expand funding for growing economic activity of the
enterprise;
• obtaining opportunities to attract additional capital from the
financial market;
• minimization of the risk of establishing control over the company by
an external investor or one of the shareholders;
• achieving greater openness of the company to attract investors or,
conversely, reduce the level of publicity of the enterprise.

42.

The most common examples of enterprise
transformation are:
the limited liability company is reorganized into a joint
stock company;
the private enterprise is reorganized into a limited liability
company;
a closed joint stock company is transformed into an open
one.
For example, in the transformation of a closed joint stock
company into an open one, the owners are interested
in greater publicity of the enterprise in order to ensure
the attraction of external investment resources to
finance the expansion of production.

43.

Transformation of business entities may be carried out voluntarily, ie
by decision of the owners, or necessarily in accordance with the
provisions of the Civil Code of Ukraine, in the following cases:
• 1) a general partnership is liquidated if there is one participant left
in its owners. He has the right within 6 months from the moment
when he became the sole participant, to transform such a company
into another company in the manner prescribed by the Civil Code of
Ukraine;
• 2) a limited partnership (trust) is liquidated when all depositors
withdraw from its members.
• 3) a limited liability company and a joint stock company must
comply with the requirements for the size of their net assets. If they
are insufficient to prevent compulsory liquidation in accordance
with the law, the company may be transformed into another
organizational and legal form, in which there are no mandatory
requirements for the amount of net assets.

44.

The transformation of the enterprise is carried out in the following
stages:
• Stage 1. Adoption by the general meeting participants
(shareholders) of the decision to terminate the company by
transformation.
• Stage 2. Notification of the state registrar on the termination of the
company and the appointment of a commission to carry out its
transformation.
• Submission of documents to the state registrar for registration of
termination of a legal entity shall be carried out not later than the
next day from the moment of making the relevant decision by the
general meeting of owners.
• The Commission on Termination of the Company shall publish in
the official printed publications a notice on the termination of the
legal entity, on the procedure and terms of the application by
creditors of claims against it. This period shall not be less than two
months from the date of publication of the notice of termination of
the legal entity.

45.

• Stage 3. Submission to the tax authority of a package of documents for
deregistration of the taxpayer.
• Stage 4. Notification of social insurance funds on the decision to transform
the enterprise.
• Stage 5. Carrying out work with creditors of the transforming enterprise:
notification of creditors about carrying out reorganization of the company
in the form of transformation; receiving creditors' claims for repayment
(including early) of accounts payable.
• Creditors may submit their claims to the company for a period of not less
than 2 months.
• Stage 6. The beginning of the procedure of conversion of the rights of
participants (shareholders) to share (shares) in the authorized capital of
the transformed company.
• The first part of the conversion procedure involves the formation of debts
to participants (shareholders) to receive shares (stakes) in the authorized
capital of the successor. The corporate rights of the enterprise being
reorganized are exchanged for written commitments to issue the
appropriate number of corporate rights to the enterprise being created.

46.

• Stage 7. Compilation of the register of creditors' claims, repayment
or rejection of claims, preparation of the transfer deed containing |
information on the succession of all obligations of the company to
all its creditors and debtors.
• Failure to submit a properly drafted transfer deed to the state
registration body is grounds for refusing to make an entry in the
unified state register on termination of the legal entity and state
registration of the created legal entity - successor (Part 4 of Article
107 of the Civil Code of Ukraine).
• Stage 8. Convening a constituent assembly and deciding on the
establishment of the enterprise and approval of changes to the
founding documents.
• Stage 9. State registration of enterprise transformation, renewal of
licenses.
• Stage 10. Completion of the procedure of conversion of the rights
of participants (shareholders) in the authorized capital.

47.

• The second part of the conversion procedure is related to
the repayment by the successor of the debt to the
shareholders (participants) on receipt in the authorized
capital. Written commitments are exchanged for the
corporate rights of the company created as a result of the
transformation.
• When one enterprise is transformed into another, all
property rights and obligations of the former enterprise are
transferred to the newly established enterprise.
• The size of the share (in percent) of each founder
(participant, shareholder) in the authorized capital of the
reorganized enterprise must be equal to the size of his
share in the authorized capital of the company created as a
result of transformation.

48.

When transforming a closed joint-stock
company into an open one, the nominal value
and number of shares of the joint-stock
company created as a result of the
transformation must be equal to the nominal
value and number of shares of the joint-stock
company at the time of the reorganization
decision.

49.

50.

Test questions
1. What is the reorganization of enterprises?
2. What are the reasons for the reorganization of enterprises?
3. What forms of reorganization of enterprises are distinguished in the economic literature?
4. Which document defines the conditions for reorganization of enterprises?
5. In which cases is the reorganization of enterprises aimed at their consolidation?
6. What types of reorganization of the enterprise aimed at their consolidation, do you know?
7. What is the difference between horizontal and vertical consolidation of enterprises?
8. In what order is the merger and acquisition of enterprises?
9. What is the transfer balance of the enterprise?
10. Name the reasons for the unbundling of enterprises.
11. In what order is the division of enterprises?
12. How is the division of the enterprise different from the separation of the enterprise?
13. What is the essence of the transformation of the enterprise?
14. In which cases is the transformation of the enterprise regulated by law?
15. How to transform the company?