(1) township and village enterprises.
(2) joint households, family-run enterprises.
(3) Associated enterprises mainly run by township enterprises.
(4) Collectively owned enterprises directly under the competent departments of township enterprises in districts and counties. Article 4 Township enterprises must adhere to the socialist direction and abide by the law. Enterprises receive a "business license", with legal personality, legitimate rights and interests are protected by law. No department, unit or individual is allowed to transfer, misappropriate or embezzle the assets of a township enterprise. For the infringement of the legitimate rights and interests of the enterprise, the enterprise has the right to resist, claim compensation or file a complaint with the court. Article 5 Township and village enterprises shall face the two markets at home and abroad, and serve agricultural production, urban industrial support, people's life, foreign trade and export and the development of tourism. Focus on the development of the food industry, feed industry, building materials and construction, transportation, planting and breeding, agricultural and sideline product processing industry and urban industrial collaboration supporting industries, as well as commercial, catering, service and other industries. Where conditions exist, technology-intensive enterprises shall be actively developed. Article 6 relaxation of the township enterprises in the production and operation of the scope:
(a) Where the state allows the operation of the industry, the township enterprises can be operated, and allows the operation of a business enterprise for the main part of its business.
(2) The productive enterprises may wholesale and retail the products produced by the enterprises, and may also set up sales organizations to deal with other permitted commodities.
(3) Township enterprises may transfer and dispose of raw materials not needed for production and overstocked and surplus materials in material trading centers. Article VII where suitable for township enterprises in situ processing of agricultural and sideline products, livestock products, aquatic products, mountain products and Chinese herbal medicines (rough processing), etc., to organize in situ processing. In the future, except in special circumstances, not in the city of new and expanded such processing enterprises, the city's existing such enterprises, to gradually with the townships and villages jointly organized. Article VIII township enterprises should be in accordance with the product technical standards and procedures for the organization of production, the establishment of a sound quality assurance system to ensure product quality, and constantly updated products. District and county authorities shall supervise the quality of products. Article IX township enterprises can take the following business methods:
(a) the implementation of various forms of business contracting system. Through the bidding method, to attract all parties "capable of" contracting enterprises, enterprise workshops or individual equipment. The content of the contract, by the contracting parties specifically agreed. The contracting parties should strictly fulfill the signed contract.
(2) the implementation of asset shares, employee dividends and unit participation in different forms of profit-sharing shareholding system. Profits are divided into dividends and losses are made up in shares.
(3) the implementation of the lease system. Bidding and tendering methods can be adopted, the enterprise, enterprise workshop, single equipment leased to individuals or collectives. In leasing, the leasing parties to sign a lease contract, clear economic responsibility of the leasing parties, business power, economic benefits and rewards and penalties conditions, and discussed and approved by the meeting of employee representatives, the competent authorities approved by a notary public notarized by the notary public. Individuals or collectives who have taken the lease are required to pledge a certain amount of property as collateral or pay a security deposit. If the enterprise incurs a loss, the individual or collective lessee has to use the mortgaged property or deposit to offset the loss, and if the loss exceeds the offset amount, the lease contract will be terminated.
(4) township enterprises are not well run long-term losses, discussed and approved by the general meeting of the staff, the competent departments for approval, can be sold at auction. Article 10 township enterprises to conscientiously implement the state regulations on environmental protection management, pollution of enterprises to be managed. Newly built enterprises that pollute the environment shall conform to the pollutant discharge standards set by the State and have facilities for the treatment of sewage and harmful gases. From January 1, 1987, the city, district and county environmental protection departments to collect the township enterprise sewage charges for the return of the same treatment as the state-run, collective enterprises. Article XI township enterprises must strictly implement the state and provincial and municipal laws and regulations on production safety, establish and improve production safety regulations. Municipalities, districts, counties, the relevant departments shall inspect and supervise the production safety of township enterprises. To strictly control the establishment of township enterprises engaged in the production of flammable and explosive products. If the establishment is necessary, it shall be approved by the people's government of the city, district or county. Article 12 The issuance of labor protection articles for workers in township enterprises may be implemented in accordance with the standards stipulated by the same industry in cities. Medical expenses, sick leave wages and other welfare benefits shall be discussed and decided by a meeting of the workers' representatives of the enterprise according to the economic conditions of the enterprise. Article 13 The net profit after tax of the township enterprises shall be retained and utilized in accordance with the following provisions:
(1) Seventy percent shall be retained by the village enterprises, and thirty percent shall be turned over to the village.
(2) Township and township enterprises shall retain seventy percent of the net profit and turn it over to the township and township authorities for twenty percent and to the township and township governments for ten percent.
(3) Collectively owned enterprises directly under the competent authorities of districts and counties in townships and townships will retain seventy percent and turn over thirty percent to the competent authorities.
(4) The retained profits of enterprises in items (1), (2) and (3) of this Article shall be mainly used for expanding reproduction and supplementing working capital. The part used for collective welfare and employee incentives is not allowed to exceed a maximum of twenty percent.
(5) Profits turned over to district, county, township and township authorities shall be used mainly for the expansion of enterprise reproduction. The profits handed over to the village, township and township governments are mainly used for "supplementing agriculture with labor" and other social expenditures.
(6) Profits from items (1), (2) and (3) of this article shall be set aside for distribution at the end of the year. It is not permitted to make advance or excessive withdrawals. Finance, taxation, banks and credit unions at all levels shall play a supervisory role and assist the competent departments of township enterprises in supervising the distribution, management and use of profits. Improper distribution and use of profits of township and village enterprises should be stopped and corrected in a timely manner.