Company-Law-of-the-Peoples-republic-of-china

CompanyLawofthePeople'sRepublicofChina(TheCompanyLawofthePeople’sRepublicofChinahasbeenamendedandadoptedbythe18thmeetingoftheStandingCommitteeoftheTenthNationalPeople'sCongressonOctober27,2005.ThisLaw,asamended,isherebypromulgatedandwillcomeintoforceonJanuary1,2006.)ChapterOne:GeneralProvisions.1ChapterTwo:IncorporationandOrganizationalStructureofaLimitedLiabilityCompany.6SectionOneIncorporation.6SectionTwoOrganizationalStructure.9SectionThreeSpecialProvisionsonOne-PersonLimitedLiabilityCompanies.14SectionFourSpecialProvisionsonWhollyState-ownedCompanies.15ChapterThree:ShareTransferofaLimitedLiabilityCompany.16ChapterFour:EstablishmentandOrganizationalStructureofaJointStockLimitedCompany.18SectionOneEstablishment18SectionTwoGeneralMeetingofShareholders.23SectionThreeBoardofDirectorsandGeneralManager25SectionFourBoardofSupervisors.27ChapterFiveIssueandTransferofSharesofJointStockLimitedCompanies.28SectionOneIssueofShares.28SectionTwoAssignmentOfShares.31ChapterSix:QualificationsandObligationsofDirectors,SupervisorsandSeniorOfficers.32ChapterSeven:CompanyBonds.35ChapterEight:FinancialandAccountingAffairsofCompany.36ChapterNine:MergerandDivisionofCompany,IncreaseandDecreaseofRegisteredCapital38ChapterTen:DissolutionandLiquidationofCompany.40ChapterEleven:BranchofForeignCompany.42ChapterTwelve:LegalLiabilities.43ChapterThirteen:SupplementaryProvisions.47ChapterOne:GeneralProvisionsArticle1ThisLawisenactedinordertostandardizetheorganizationandactivitiesofcompanies,toprotectthelegitimaterightsandinterestsofcompanies,shareholdersandcreditors,tomaintainthesocio-economicorderandtopromotethedevelopmentofthesocialistmarketeconomy.Article2Theterm'company'referredtointhisLawmeansalimitedliabilitycompanyorajointstocklimitedcompanyincorporatedwithintheterritoryofthePeople'sRepublicofChinainaccordancewiththisLaw.Article3Acompanyisanenterpriselegalpersonthatshallenjoytherighttotheentireindependentpropertyofthelegalperson.Acompanyshallbeliableforitsdebtstotheextentofallitsassets.Inthecaseofalimitedliabilitycompany,shareholdersshallassumeliabilitytowardsthecompanytotheextentoftheirrespectivecapitalcontributions.Inthecaseofajointstocklimitedcompany,shareholdersshallassumeliabilitytowardsthecompanytotheextentoftheirrespectiveshareholdings.Article4Theshareholdersofacompanyshallenjoysuchrightsasbenefitingfromassetsofthecompany,makingmajordecisionsandselectingmanagerialpersonnelinaccordancewiththelaw.Article5Inconductingitsbusiness,acompanymustabidebylawsandadministrativerulesandregulations,observesocialmoralsandbusinessethics,conductbusinessesingoodfaith,subjectitselftothesupervisionofthegovernmentandthepublicandfulfillsocialresponsibilities.Thecompany'slawfulrightsandinterestsareprotectedbylawandshallnotbeinfringedupon.Article6Acompanyshallapplytothecompanyregistrationauthorityforestablishmentregistration.CompaniesmeetingtheconditionssetbythisLawshallberegisteredaslimitedliabilitycompaniesorjointstocklimitedcompanies;whilecompaniesfailingtomeettheconditionssetbythisLawshallnotberegisteredaslimitedliabilitycompaniesorjointstocklimitedcompanies.Wherelaws,administrativerulesandregulationsprovidethatincorporationofcompaniesmustbesubjecttoexaminationandapproval,theproceduresofexaminationandapprovalshallbecompletedaccordingtolawpriortotheregistrationofsuchcompanies.Thepublicmayinquireaboutregistrationitemsfromthecompanyregistrationauthority.Thecompanyregistrationauthorityshallprovidesuchinquiryservice.Article7Thecompanyregistrationauthorityshallgrantregistrationandissueabusinesslicensetoacompanythatisestablishedinaccordancewiththelaw.Thedateoftheissuanceofthecompanybusinesslicenseshallbethedateoftheincorporationofthecompany.Thebusinesslicenseshallspecifythenameanddomicileofthecompany,registeredcapital,paid-incapital,businessscope,thenameofthelegalrepresentative,etc.Intheeventofanychangetotheregistrationitemofthebusinesslicense,acompanyshallundergoalterationregistrationprocedureswiththecompanyregistrationauthorityinaccordancewiththelaw,afterwhichanewbusinesslicenseshallbeissuedtothecompany.Article8AlimitedliabilitycompanyestablishedaccordingwiththisLawmustclearlyindicatethewords'limitedliabilitycompany'initsname.AjointstocklimitedcompanyestablishedaccordingtothisLawmustclearlyindicatethewords'jointstocklimitedcompany'or‘jointstockcompany’initsname.Article9Ifalimitedliabilitycompanyistobeconvertedintoajointstocklimitedcompany,itshallsatisfytherequirementsforajointstocklimitedcompanystipulatedbythisLaw.Ifajointstocklimitedcompanyistobeconvertedintoalimitedliabilitycompany,itshallsatisfytherequirementsforalimitedliabilitycompanystipulatedbythisLaw.Wherealimitedliabilitycompanyisconvertedintoajointstocklimitedcompanyorviceversa,theclaimsanddebtsoftheoriginalcompanyshallbesucceededtobythecompanyintowhichitisconverted.Article10Acompany'sdomicileshallbetheplacewhereitsmainadministrativeorganizationislocated.Article11Articlesofassociationmustbeformulatedinaccordancewiththelawwhenacompanyisincorporated.Acompany'sarticlesofassociationshallhavebi