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Dispute Over Stock Rights On Chinese-Foreign Joint Ventures

Submitted by Zhong Yi on Fri, 06/20/2008 - 14:30

Authored by: Zhong Yi, Attorney at Law - Shanghai Runhe Law Firm; Editor by:Corinna Qian [2007]

Translated by Michael

Case Background

First-instance court: the Higher People’s Court of Shanghai Municipality
Appeal court: the PRC Supreme People’s Court
Appellant (Defendant in the first instance): Company A
Appellee (Plaintiff in the first instance): Company B

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The duty of a company --- Revision and Explanation on China Company Law Article 5

Submitted by Zhong Yi on Fri, 12/14/2007 - 15:00

Authored by: Zhong Yi, Monica

2006 China Company Law

Article 5 In conducting business operations, a company shall comply with the laws and administrative regulations, social morality, and business morality. It shall act in good faith, accept the supervision of the government and general public, and bear social responsibilities.

2004 China Company Law

Article 5 A company shall operate independently with all its assets, and be responsible for its own profits and losses.

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The Shareholder’s Rights --- Revision and Explanation on China Company Law Article 4

Submitted by Zhong Yi on Wed, 12/05/2007 - 15:00

Authored by: Zhong Yi, Monica

2006 China Company Law:

Article 4 The shareholders of a company shall be entitled to enjoy the capital proceeds, participate in making important decisions, choose managers and enjoy other rights.

 2004 China Company Law:

Article 4 Shareholders of a company, as capital contributor, shall have the right to enjoy capital gains, take major policy decisions and choose managers in proportion to share of the investment they make in the company. 

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Forms of Foreign Investment

Submitted by Zhong Yi on Fri, 10/26/2007 - 14:00

Sino-foreign Equity Joint Ventures, Sino-foreign Contractual Joint Ventures, Wholly Foreign-Owned Enterprise are the three main forms of Foreign Direct Investment in china for absorbing foreign capital.There are some Other investment forms ,such as Share Company with Foreign Investment, Foreign Invested Holding Company, Joint Exploitation, BOT, etc.

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Company Name in China

Submitted by Zhong Yi on Sun, 07/15/2007 - 14:00

Authored by: Zhong Yi, Attorney at Law - Shanghai Runhe Law Firm
Editor by: Liu Fei

1、what parts should a company name consist of?

With the exception of those prescribed by relevant laws, regulations and rules, a company name shall consist of, in the following order, “location”, “trade name (firm name)”, “industry” and “organization form”. The trade name in a company name shall include 2 Chinese Characters at least.
(1)Upon the approval of the State Administration for Industry and Commerce (SAIC), the enterprise that meets one of the following conditions may use a company name without “location”: With the establishment approved by the State Council; with the registration in SAIC; with the registered capital (or registered fund) not less than 50 million RMB; with other conditions prescribed by SAIC.

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Summary of the Registration for Foreign-Invested Enterprises in China

Submitted by Zhong Yi on Wed, 07/04/2007 - 14:00

Author: Zhong Yi, Liu Fei

1. Business forms for foreign investors to develop activities in China

 (1) Forms of enterprise

ⅰ.  Chinese-Foreign Equity Joint Ventures;

ⅱ.  Chinese-Foreign Contractual Joint Ventures;

ⅲ.  Foreign Capital Enterprises.

(2) In addition to establishing enterprises, there are following business forms for foreign investors to develop activities in China

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Establishment of Representative Office of Foreign Enterprises in China

Submitted by Zhong Yi on Sun, 10/29/2006 - 14:00

A foreign enterprise, when applying for permission to establish a resident office in China, should produce the following documents and reference materials:

(1) An application form signed by the chairman of the board of directors or the general manager of that enterprise. The content of the application form should include such details as the name of the resident office to be set up, the name(s) of the responsible member(s), the scope of activity, duration and site of the office;

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