mineral resources

Article introduction: What are the basic reasons for business closures? What compensation can I get? What legal rights and interests can be fought for when a company is vacating and shutting down?

1. What are the basic reasons for business closure?

(1) The first category includes substandard environmental protection, construction of breeding farms in prohibited areas, air pollution, water pollution, noise pollution, etc. It failed to meet environmental standards and was shut down for environmental reasons. This is the most common in practice.

(2) The second category is closure due to safety issues. For example, if the location is less than 500 meters from a residential area, or the location is very close to a primary or secondary school, the company must be shut down due to safety issues. Ying Ting believes that there are also production safety requirements that are not up to standard. For example, there will be some safety hazards in production equipment, facilities, processes, etc., especially in the coal mines and chemical industry, which may involve such safety issues.

2. What kind of compensation will be provided after the company closes down?

1. Fixed asset compensation

Compensation for land, houses, buildings and ground attachments that cannot be relocated, as well as machinery and equipment lost due to relocation, etc.

2. Compensation for losses caused by suspension of production and business

Losses from production and business suspension include “must be paid” and “should be earned”. That is, actual and expected operating losses. In layman's terms, it refers to the related losses and expenses caused by the suspension of production and business.

3. Costs related to demolition and relocation

That is, the costs directly incurred by demolition and relocation. Including machine equipment debugging and repair costs, material disassembly and packaging costs, transportation costs, equipment relocation and installation costs, etc.

4. Demolition incentives

In order to complete the relocation task as soon as possible, the demolition party will give some rewards to the people being demolished. For example, limit the number of days to move, how much money can be given, allocate houses in good locations, etc. Yingting understood it to include incentive fees incurred due to the demolition policy, including expedited relocation fees, demolition incentive fees, etc.

5. Losses caused by illegal demolition

For damage to machinery, equipment and other property caused by illegal demolition, you can claim compensation for the losses and apply for state compensation.

Yingting reminds you:

If a business is shut down, reasonable compensation should be sought. Enterprises should proactively negotiate with relevant departments and not wait passively. The result of waiting is often to miss the statute of limitations. In practice, if you are dissatisfied with the administrative penalty decision made by the relevant department, or believe that the specific administrative action of the relevant department infringes upon your legitimate rights and interests, you can file an application for administrative reconsideration within 60 days from the date of becoming aware of the specific administrative action, and file an administrative lawsuit within 6 months. If you have not negotiated the compensation conditions with the department, you can consult a lawyer specialized in business closure, or ask a lawyer to intervene and use professional legal knowledge to negotiate with the relevant departments to strive for fair and reasonable compensation.