Foreign investors
BIZCHINA / Company laws
Interim Provisions on Mergers and Acquisitions of Domestic Enterprises
by Foreign investors
Updated: 2006-04-17 10:20
Article 4 In mergers and acquisitions of domestic enterprises, foreign
investors shall comply with the requirements regarding the investors'
qualifications and industrial policy as set forth in the laws,
administrative regulations and departmental rules and the relevant
requirements under industry policies. In the case of industries where no
wholly foreign ownership is allowed under the Guidance Catalog of Foreign
Investment Industries, any merger or acquisition of a domestic enterprise
engaging in the industry shall not lead to the foreign investors' wholly
ownership of all equity interest in the acquired enterprise. In the case
of industries which require the Chinese party to be controlling or
relatively controlling, the Chinese party shall remain to be in the
controlling or relatively controlling position in the acquired enterprise
after any merger or acquisition of the domestic enterprise engaging in
such industries. In the case of industries where operation by foreign
investors is prohibited, no foreign investors may merge with or acquire
any enterprise engaging in such industries.
Article 5 Any merger or acquisition of a domestic enterprise by foreign
investors to set up a foreign investment enterprise shall be subject to
the approval of the examination and approval authorities in accordance
with the Provisions, and procedures for change registration or
establishment registration shall be handled with the registration
authorities. The contribution made by the foreign investors to the
registered capital of the foreign investment enterprise established after
the merger or acquisition shall generally not be less than 25% of the
registered capital. Except as provided otherwise by the laws or
administrative regulations, if the contribution made by foreign investors
is less than 25% of the registered capital, the foreign investment
enterprise shall be subject to the examination, approval and registration
in accordance with the currently applicable examination and registration
procedures for the establishment of a foreign investment enterprise. When
issuing the foreign investment enterprise approval certificates, the
examination and approval authority shall add a notation "foreign
investment proportion less than 25%". When issuing the foreign investment
enterprise business licenses, the registration authority shall add the
notation "foreign investment proportion less than 25%��.
Article 6 For the purpose of the Provisions, the examination and approval
authority shall be the Ministry of Foreign Trade and Economic Cooperation
of the PRC (hereinafter referred to as "MOFTEC") or the administrative
authority in charge of foreign trade and economic cooperation at the
provincial level (hereinafter referred to as the "Provincial Examination
and Approval Authority"), and the registration authority shall be the
State Administration for Industry and Commerce of the PRC (hereinafter
referred to as "SAIC") or its authorized local industrial and commercial
bureaus. If the foreign investment enterprise established after the
merger or acquisition falls into a specific type or a specific industry
subject to MOFTEC approval in accordance with the laws, administrative
regulations and departmental rules, the provincial examination and
approval authority shall submit the application documents to MOFTEC for
examination and approval and MOFTEC shall decide to approve or disapprove
the application in accordance with the law.
Page: 1 2 3 4 5 6 7 8 9
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Luxury cars are big boys' toys
� Full speed ahead for Shanghai express
� Godfather of information industry
� Individual gold transactions in China brisk
� China closes over 2,600 enterprises
Today's Top News
� 'SCO not an eastern version of NATO'
� 9.5 million sit college exam this year
� Tianjin gets the nod for new-area plan
� Malformed baby has third arm removed
� Doctors remove third arm from boy
Top Biz News
� Three Gorges Dam takes the strain
� China speeds up credit rating of foreign trade companies
� Scientists to help achieve goal of innovation nation
� Nuke fusion reactor gives a headstart
� China, Arab nations sign action plan
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Chinese language
No comments:
Post a Comment