Legal information

Part One: Case Story

The Environmental Protection Bureau of a county in Zhejiang found that the sewage treatment facilities of a chemical plant were damaged, and untreated wastewater exceeding the standard was discharged into a pond outside the factory. The Yingting demolition team learned that the Environmental Protection Bureau ordered the company to shut down for rectification in accordance with the provisions of the Environmental Protection Law. Later, the business owner actively installed sewage facilities and prepared to continue production. However, after inspection by the environmental protection department, it still did not meet environmental protection requirements and decided to continue to close the company. When the company negotiated compensation with the Environmental Protection Bureau, it was found that because it was a polluting company, the compensation given was too low. How do companies protect their legitimate rights and interests?

Part 2: Relevant laws and regulations

Although environmental pollution standards vary from place to place, they must also comply with the country's basic laws. The regulations that adjust the legal relationship between environmental protection shutdowns of enterprises mainly include: Environmental Protection Law, Air Pollution Prevention and Control Law, Water Pollution Prevention and Control Law, and Marine Environmental Protection Law.

Part 3: 5 Reasons for Business Closure

1. Shut down enterprises based on tasks or command-style policies

It is a government agency shutting down enterprises in a command-style manner, which is of a policy nature. Ying Ting found that they were often targeted at overall work implemented within a province or city. Policy shutdowns are universal and regional. Companies of the same type may be shut down, companies in a certain range may be shut down, etc.

2. The most common shutdown--Enterprise environmental shutdown

Environmental protection shutdowns of enterprises are the most common. For example, breeding farms that cause water pollution, chemical companies that cause air pollution, some small polluting companies, pharmaceutical companies that discharge pollutants, etc. are all key targets of environmental inspections, and they are also companies that are often rectified and shut down.

3. Enterprises with high pollution and low economic benefits are facing industrial closure.

Some industrial enterprises with high pollution, high energy consumption and low economic contribution may face fate such as rectification, closure, vacation, and demolition. For example, policies such as "198 Industrial Land Reduction" and "Five Violations Must be Censored" were formulated to address this type of situation.

4. Business closures due to illegal land occupation.

If the purpose of collective land is changed and agricultural land or breeding land is used for industrial construction, this illegal occupation of land will lead to the closure of enterprises, as well as the vacation and demolition of enterprises.

5. Shutdown of companies with punitive nature

If an enterprise has fire hazards, safety hazards, or fails to meet environmental impact assessment standards, relevant departments may shut down the enterprise and impose penalties.

Yingting reminds you:

When your business is shut down due to environmental issues, you must actively negotiate with relevant departments to resolve the issue. Do not wait passively or listen to the verbal promises of the staff of the relevant departments, thereby delaying the precious time when you can protect your rights and interests through legal means. You can renovate and upgrade your business, make reservation plans, and try to get your business back in business. In order to obtain policy support, you can also explain the situation of the enterprise to the closure authority, including the losses caused by the closure, the development prospects of the enterprise, and expected profits, etc. You can also report it to the industry development department of the enterprise and strive for support from industry-oriented policies and funds. In addition, higher-level administrative agencies can also be requested to conduct reconsideration or judicial review. If the company cannot continue to engage in original production, it may consider restructuring or changing production. If the compensation given is too low and the company wants to solve the problem through legal channels, please file an administrative review within 60 days of the relevant department taking specific administrative actions and file an administrative lawsuit within 6 months. Don’t miss the statute of limitations!

Each case has a story. If you have encountered similar problems or have other land acquisition and demolition issues, you can leave us a message for one-on-one consultation.

Editor/Original Author: Yingting Demolition Lawyers Group