The Company Law of the Peoples Republic of China.docx
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The Company Law of the Peoples Republic of China.docx
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TheCompanyLawofthePeoplesRepublicofChina
TheCompanyLawofthePeople'sRepublicofChinahasbeenamendedandadoptedatthe18thsessionoftheStandingCommitteeoftheTenthNationalPeople'sCongressofthePeople'sRepublicofChinaonOctober27,2005.TheamendedCompanyLawofthePeople'sRepublicofChinaispromulgatedherebyandshallgointoeffectasofJanuary1,2006.
ThePresidentofthePeople'sRepublicofChinaHuJintao
October27,2005
TheCompanyLawofthePeople'sRepublicofChina
(revisedin2005)
(AdoptedattheFifthSessionoftheStandingCommitteeoftheEighthNationalPeople'sCongressonDecember29,1993.RevisedforthefirsttimeonDecember25,1999inaccordancewiththeDecisionoftheThirteenthSessionoftheStandingCommitteeoftheNinthPeople'sCongressonAmendingtheCompanyLawofthePeople'sRepublicofChina.RevisedforthesecondtimeonAugust28,2004inaccordancewiththeDecisionofthe11thSessionoftheStandingCommitteeofthe10thNationalPeople'sCongressofthePeople'sRepublicofChinaonAmendingtheCompanyLawofthePeople'sRepublicofChina.Revisedforthethirdtimeatthe18thSessionofthe10thNationalPeople'sCongressofthePeople'sRepublicofChinaonOctober27,2005)
Contents
ChapterIGeneralProvisions
ChapterIIIncorporationandOrganizationofaLimitedLiabilityCompany
Section1Incorporation
Section2Organization
Section3SpecialProvisionsonOne-personLimitedLiabilityCompanies
Section4SpecialProvisionsonwhollyState-ownedCompanies
ChapterIIITransferofStockRightofaLimitedLiabilityCompany
ChapterIVIncorporationandOrganizationofaJointStockLimitedCompany
Section1Incorporation
Section2Assemblyofshareholders
Section3BoardofDirectors,Managers
Section4BoardofSupervisors
Section5SpecialProvisionsontheOrganizationofaListedCompany
ChapterVIssuanceandTransferofSharesofaJointStockLimitedCompany
Section1IssuanceofShares
Section2TransferofShares
ChapterVIQualificationsandObligationsoftheDirectors,SupervisorsandSeniorManagersofaCompany
ChapterVIICompanyBonds
ChapterVIIIFinancialAffairsandAccountingofaCompany
ChapterIXMergerandDivisionofaCompany;IncreaseandDeductionofRegisteredCapital
ChapterXDissolutionandLiquidationofaCompany
ChapterXIBranchesofaForeignCompany
ChapterXIILegalLiabilitiesChapterXIIISupplementaryProvisions
ChapterIGeneralProvisions
Article1ThisLawisformulatedforthepurposesofregulatingtheorganizationandoperationofcompanies,protectingthelegitimaterightsandinterestsofcompanies,shareholdersandcreditors,maintainingthesocialisteconomicorder,andpromotingthedevelopmentofthesocialistmarketeconomy
Article2Theterm"company"asmentionedinthisLawreferstoalimitedliabilitycompanyorajointstocklimitedcompanyestablishedwithintheterritoryofthePeople'sRepublicofChinainaccordancewiththeprovisionsofthislaw.
Article3Acompanyisanenterpriselegalperson,whichhasindependentlegalpersonpropertyandenjoysthepropertyrightofthelegalperson.Anditshallbeartheliabilitiesforitsdebtswithallitsproperty.Asforalimitedliabilitycompany,theshareholdersshallberesponsibleforthecompanytotheextentofthecapitalcontributionstheyhavepaid.Asforajointstocklimitedcompany,theshareholdersshallberesponsibleforthecompanytotheextentofthesharestheyhavesubscribedfor.
Article4Theshareholdersofacompanyshallbeentitledtoenjoythecapitalproceeds,participateinmakingimportantdecisions,choosemanagers,andsoon.
Article5Whenundertakingbusinessoperations,acompanyshallcomplywiththelawsandadministrativeregulations,socialmoralityandbusinessmorality.Itshallactingoodfaith,acceptthesupervisionofthegovernmentandthegeneralpublic,andbearsocialresponsibilities.
Thelegitimaterightsandinterestsofacompanyshallbeprotectedbylawsandmaynotbeinfringed.
Article6Fortheincorporationofacompany,anapplicationforincorporationshallbefiledwiththecompanyregistrationauthority.IftheapplicationmeetstherequirementsofthisLaw,thecompanyregistrationauthorityshallregisterthecompanyasalimitedliabilitycompanyorajointstocklimitedcompany.Iftheapplicationfailstomeettherequirements,itshallnotberegisteredasalimitedliabilitycompanyorajointstocklimitedcompany.
Ifanylaworadministrativeregulationstipulatesthattheincorporationofacompanyshallbesubjecttoapproval,therelevantapprovalformalitiesshallbegonethroughpriortotheregistrationofthecompany.
Thegeneralpublicmayconsulttherelevantmattersoncompanyregistrationatcompanyregistrationauthority,whoshallprovideconsultingservices.
Article7Foralegallyestablishedcompany,thecompanyregistrationauthorityshallissuethecompanybusinesslicensetoit,andthedateofissuanceofthecompanybusinesslicenseshallbethedateofincorporationofthecompany.Thecompanybusinesslicenseshallstatethename,domicile,registeredcapital,paid-upcapital,scopeofbusiness,thenameofthelegalrepresentativeandetc.Ifanyoftheitemsasstatedinthebusinesslicenseischanged,thecompanyshallapplyformodificationregistration,andthecompanyregistrationauthorityshallrenewthebusinesslicense.
Article8ForalimitedliabilitycompanyestablishedaccordingtothisLaw,itshallindicateinitsnamewiththewords"limitedliabilitycompany"or"limitedcompany".ForajointstocklimitedcompanyestablishedaccordingtothisLaw,itshallindicateinitsnamethewords"jointstocklimitedcompany"or"jointstockcompany".
Article9ThechangeofalimitedliabilitycompanytoajointstocklimitedcompanyshallsatisfytherequirementsasprescribedinthisLawforjointstocklimitedcompanies.ThechangeofajointstocklimitedcompanytoalimitedliabilitycompanyshallmeettheconditionsasprescribedinthisLawforlimitedliabilitycompanies.Underanyoftheaforesaidcircumstances,thecreditor'srightsanddebtsofthecompanypriortothechangeshallbesucceededbythecompanyafterthechange.
Article10Acompanyshallregardthelocationofitsprincipalofficeasitsdomicile.
Article11Thecompanyestablishedaccordingtothislawshallformulateitsarticlesofassociationwhicharebindingonthecompany,itsshareholders,directors,supervisorsandseniormanagers.
Article12Thecompany'sscopeofbusinessshallbedefinedinitsarticlesofassociationandshallberegisteredaccordingtolaw.Thecompanymaychangeitsscopeofbusinessbymodifyingitsarticlesofassociation,butshallgothroughthemodificationregistration.Ifthecompany’sscopeofbusinesscoversanyitemsubjecttoapprovalaccordingtolawsoradministrativeregulations,theapprovalshallbeobtainedbeforehand.
Article13Thelegalrepresentativeofacompanyshall,accordingtotheprovisionsofitsarticlesofassociation,beassumedbythechairmanoftheboardofdirectors,executivedirectorormanager,andshallberegisteredaccordingtolaw.Ifthelegalrepresentativeofthecompanyischanged,thecompanyshallgothroughthemodificationregistration.
Article14Thecompanymaysetupbranches.Tosetupabranch,thecompanyshallfilearegistrationapplicationwiththecompanyregistrationauthority,andshallobtainthebusinesslicense.Thebranchshallnotenjoythestatusofanenterpriselegalperson,anditscivilliabilitiesshallbebornbythecompany.
Thecompanymaysetupsubsidiarieswhichenjoythestatusofanenterpriselegalpersonandshallbeindependentlybearcivilliabilities.
Article15Acompanymayinvestinotherenterprises.However,itshallnotbecomeacapitalcontributorthatshallbearthejointliabilitiesforthedebtsoftheenterprisesitinvestsin,unlessitisotherwiseprovidedforbyanylaw.
Article16Whereacompanyintendstoinvestinanyotherenterpriseorprovideguaranteeforothers,itshall,accordingtotheprovisionsofitsarticlesofassociation,bedecidedatthemeetingoftheboardofdirectorsorshareholders’smeetingorshareholders'assembly.Ifthearticlesofassociationprescribeanylimitonthetotalamountofinvestmentsorguarantees,orontheamountofasingleinvestmentorguarantee,theaforesaidtotalamountoramountshallnotexceedtheresponsivelimitedamount.Ifacompanyintendstoprovideguaranteetoashareholderoractualcontrollerofthecompany,itshallmakearesolutionthroughtheshareholder'smeetingorshareholders'assembly.
Theshareholderasmentionedintheprecedingparagraphortheshareholderdominatedbytheactualcontrollerasmentionedintheprecedingparagraphshallnotparticipateinvotingonthematterasmentionedintheprecedingparagraph.Suchmatterrequirestheaffirmativevotesofmorethanhalfoftheothershareholdersattendingthemeeting.
Article17Thecompanyshallprotectthelawfulrightsandinterestsofitsemployees,concludeemploymentcontractswiththeemployees,buysocialinsurances,strengthenlaborprotectionsoastorealizesafeproduction.
Thecompanyshall,invariousforms,reinforcethevocationaleducationandin-servicetrainingofitsemployeessoastoimprovetheirprofessionalquality.
Article18Theemployeesofacompanyshall,accordingtotheLaborUnionLawofthePeople'sRepublicofChina,organizealaborunion,whichshallcarryoutunionactivitiesandsafeguardthelawfulrightsandinterestsoftheemployees.Thecompanyshallprovidenecessaryconditionsforitslaboruniontoc
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