中华人民共和国公司法英文版

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中华人民共和国公司法
CompanyLawofthePeople'sRepublicofChina
主席令第十六号
（AdoptedattheFifthsessionoftheStandingCommitteeoftheEighthNational
People'sCongressonDecember29，1993）
时效性：已被修正颁布日期：19931229实施日期：19940701失效日期：19991225
颁布单位：全国人大常委会Chapter1GeneralProvisions
Article1ThisLawisformulatedinaccordancewiththeConstitutioninordertoadapttotheneedstoestablishamodementerprisesystem，standardizetheorganizationandactivitiesofcompanies，protectthelegitimaterightsandinterestsofcompanies，shareholdersandcreditors，safeguardsocialandeconomicorderandpromotethedevelopmentofthesocialistmarketeconomy.
Article2InthisLaw，theterm“company”referstoalimitedliabilitycompanyoracompanylimitedbysharesestablishedwithinChineseterritoryinaccordancewiththisLaw.
Article3Alllimitedliabilitycompaniesandcompanieslimitedbysharesareenterpriselegalpersons.
Inthecaseofalimitedliabilitycompany，ashareholderisliabletothecompanytotheextentoftheamountoftheshareholder'scapitalcontribution.Alimitedliabilitycompanyisliableforthedebtsofthecompanywithallitsassets.Inthecaseofacompanylimitedbyshares，itsentirecapitalisdividedintosharesofequalvalueandshareholdersshallbeliabletothecompanytotheextentofthesharesheldbythem.Acompanylimitedbysharesisliableforthedebtsofthecompanywithallitsassets.
Article4Theshareholdersofacompany，ascapitalcontributors，havetherighttoenjoythebenefitsoftheassetsofthecompany，makemajordecisions，choosemanagersetc.inaccordancewiththeamountofcapitaltheyhaveinvestedinthecompany.
Acompanyenjoysalllegalpersonpropertyrightsconstitutedbythe
shareholders'investment，enjoyscivilrightsandassumescivilliabilitiesinaccordancewithlaw.
OwnershipoftheState-ownedassetsinacompanybelongstothestate.

Article5Withrespecttoallitscorporateproperty，acompanyconductsitsbusinessautonomouslyinaccordancewithlawandisresponsibleforitsownprofitsandlosses.
Underthestate'smacroregulationandcontroladjustment，acompanyorganizesitsproductionandoperationsautonomouslyaccordingtomarketdemandwiththeobjectivesofraisingeconomicefficiencyandlabourproductivityandpreservingandincreasingthevalueofassets.
Article6Acompanyimplementsaninternalmanagementstructurewithacleardivisionofrightsandresponsibilities，scientificmanagementandcombinedincentivesandrestrictions.
Article7Astateownedenterprisewhichisbeingreorganizedasacompanyshallreplaceitssystemofoperation，graduallyandsystematicallytakeinventoryofitsassetsandverifyitscapital，determinepropertyrights，clearcreditors'rightsandindebtedness，valueassetsandsetupastandardizedinternalmanagementstructureinaccordancewiththelawandconditionsandrequirementsofadministrativeregulations.
Article8TheestablishmentofalimitedliabilitycompanyoracompanylimitedbysharesshallcomplywiththeconditionssetoutinthisLaw.AcompanycomplyingwiththeconditionsofthisLawisregisteredasalimitedliabilitycompanyoracompanylimitedbyshares.ACompanywhichdoesnotcomplywiththeconditionssetoutinthisLawshallnotberegisteredasalimitedliabilitycompanyoracompanylimitedbyshares.
Wherethelaworadministrativeregulationsrequirethattheestablishmentofacompanybesubmittedforexaminationandapproval，theproceduresforsuchexaminationandapprovalarecarriedoutbeforethecompanyisregistered.Article9AlimitedliabilitycompanyestablishedinaccordancewiththisLawshallhavethewords“limitedliabilitycompany”initsname.
AcompanylimitedbysharesestablishedinaccordancewiththisLawshallhavethewords“companylimitedbyshares”initsname.
Article10Thedomicileofacompanyistheplacewhereitsprincipalplaceofbusinessislocated.
Article11Inestablishingacompany，thecompany'sarticlesofassociationshallpreparedinaccordancewiththisLaw.Thearticlesofassociationarebindingonthecompany，theshareholders，directors，supervisorsandmanagers.

Acompany'sbusinessscopeisspecifiedinitsarticlesofassociationandregisteredinaccordancewiththelaw.Foritemsinacompany'sbusinessscopewhicharerestrictedbylaworadministrativeregulations，approvalshallbeobtainedinaccordancewiththelaw.
Acompanyshallconductbusinessactivitieswithinitsregisteredbusinessscope.Acompanymaychangeitsbusinessscopebyamendmentstoitsarticlesofassociationinaccordancewithproceduresprovidedbylawandafterchangingitsregistrationwiththecompanyregistrationauthority.
Article12Acompanymayinvestinotherlimitedliabilitycompaniesorcompanieslimitedbysharesandbeliabletothecompanieswhichithasinvestedintotheextentoftheamountofcapitalinvestedinsuchcompanies.
ExceptforinvestmentcompaniesandholdingcompaniesspecifiedbytheStateCouncil，whereacompanyinvestsinotherlimitedliabilitycompaniesorcompanieslimitedbyshares，theaggregateamountofinvestmentshallnotexceedfiftypercentofthenetassetsofthecompany，notincludinganyincreaseinthecapitaloftheotherlimitedliabilitycompaniesorcompanieslimitedbysharesinwhichthecompanyinvestsarisingfromanyconversionofprofitsofthesecompaniesintocapitalfollowingsuchinvestment.
Article13Acompanymaysetupbranches.Branchesofacompanydonothavethestatusofenterpriselegalpersonsandthecompanyassumesthecivilliabilitiesofitsbranches.
Acompanymaysetupsubsidiaries.Subsidiariesofacompanyhavethestatusofenterpriselegalpersonsandassumecivilliabilitiesindependentlyinaccordancewiththelaw.
Article14Inconductingitsbusinessactivities，acompanyshallabidebythelawandbybusinessethics，strengthentheconstructionofsocialistspiritualcivilizationandacceptthesupervisionofthegovernmentandthepublic.Thelegitimaterightsandinterestsofacompanyareprotectedbylawandshallnotbeinfringed.
Article15Acompanyshallprotectthelegitimaterightsandinterestsofitsstaffandworkers，strengthenlabourprotectionandbringaboutproductionsafety.Acompanyshouldusevariousmeanstoenhancevocationaleducationandon-the-jobtrainingforstaffandworkerstoincreasetheirworkquality.Article16Thestaffandworkersofacompanyorganizeatradeunioninaccordancewiththelawtocarryoutunionactivitiesandprotectthelawfulrightsandinterests

ofthestaffandworkers.Acompanyshallprovidethenecessaryconditionsforactivitiesofthetradeunionofthecompany.
Limitedliabilitycompaniesestablishedwithinvestmentbyawhollystate-ownedcompanyandthoseestablishedwithinvestmentbytwoormorestate-ownedenterprisesortwoormoreotherstate-ownedinvestmententitiespracticedemocraticmanagementinaccordancewiththeprovisionsoftheConstitutionandofrelevantlawsthroughtherepresentativeconferencesofthestaffandworkersandotherwise.
Article17Theactivitiesofthebase-levelorganizationsoftheCommunistPartyofChinainthecompanyaredealtwithinaccordancewiththeCharteroftheCommunistPartyofChina.
Article18TheLawappliestolimitedliabilitycompanieswithforeigninvestment.WherethelawsonSino-foreignequityjointventureenterprises，Sino-foreignco-operativejointventureenterprisesandwholly-ownedforeignenterprisesotherwiseprovide，theprovisionsofsuchlawsapply.
Chapter2EstablishmentandOrganizationalStructureofALimitedLiabilityCompany
Section1Establishment
Article19Establishmentofalimitedliabilitycompanyshallbesubjecttofulfillmentofthefollowingconditions；
（1）thenumberofshareholdersmeetstherequirementsofthelaw；（2）theinvestmentcontributedbyshareholdersmeetstheminimumamountofcapitalrequiredbylaw；
（3）thecompany'sarticlesofassociationareformulatedjointlybytheshareholders；
（4）thereisacompanyname，andanorganizationalstructurecomplyingwiththerequirementsforestablishingalimitedliabilitycompany；and
（5）thereisafixedsiteforproductionandoperationsandthenecessaryconditionsforproductionandoperations.
Article20Alimitedliabilitycompanyisestablishedbycapitalcontributionsmadejointlybyatleasttwoandnomorethanfiftyshareholders.
Astate-authorizedinvestmentinstitutionoradepartmentauthorizedbythestatemayinvestonitsowntoestablishawhollystate-ownedlimitedliabilitycompany.

Article21Astate-ownedenterpriseestablishedbeforetheimplementationofthisLawwhichfulfillstheconditionsfortheestablishmentofalimitedliabilitycompanyunderthisLawmaybereorganizedasawhollystate-ownedlimitedliabilitycompanyinthecaseofaninvestmententitywithasingleinvestor，orasalimitedliabilitycompanyasprovidedinthefirstparagraphoftheprecedingArticleinthecaseofaninvestmententitywithmanyinvestors.
Implementingproceduresandspecificmeansforthereorganizationofstate-ownedenterprisesintocompaniesarespecifiedbytheStateCouncilinseparateprovisions.
Article22Thearticlesofassociationofalimitedliabilitycompanyshallsetoutthefollowing：
（1）thecompany'snameanddomicile；（2）thecompany'sbusinessscope；（3）thecompany'sregisteredcapital；（4）shareholders'namesortitles；（5）shareholders'rightsandobligations；
（6）theformandamountofshareholders'capitalcontributions；（7）conditionsforshareholders'transferofcapitalcontributions；（8）thecompany'sorgansandthemethodofestablishingthem，theirpowersandrulesofprocedurefordiscussion；（9）thecompany'slegalrepresentative；
（10）groundsforthedissolutionofthecompanyandmethodforitsliquidation；and
（11）othermatterswhichtheshareholdersconsidernecessarytoprovidefor.Theshareholdersshallsignandsealthecompany'sarticlesofassociation.Article23Alimitedliabilitycompany'sregisteredcapitalisthecapitalactuallycontributedbyalltheshareholdersandregisteredwiththecompanyregistrationauthorities.
Theregisteredcapitalofalimitedliabilitycompanyshallnotbelessthanthefollowingminimumamounts：

（1）foracompanyengagingprincipallyinproductionoperations，RMB500，000yuan；
（2）foracompanyengagingprincipallyinwholesalingcommodities，RMB500，000yuan；
（3）foracompanyengagingprincipallyincommercialretailing，RMB300，000yuan；
（4）foracompanyengagingprincipallyintechnologydevelopment，consultancyandservices，RMB100，000yuan.
Requirementsfortheminimumamountofregisteredcapitalforalimitedliabilitycompanyinaparticularlineofbusinesstobehigherthantheamountstatedintheprecedingparagraphsareprovidedforinseparatelawsoradministrativeregulations.
Article24Shareholdersmaymakecapitalcontributionsincurrency，ormayinvestinkind，useindustrialproperty，non-patentedtechnologyorlanduserightstomakecapitalcontributionsbasedontheirappraisedvalue.Forinvestmentinkind，industrialproperty，non-patentedtechnologyorlanduserightswhicharecapitalcontributions，avaluationshallbecarriedoutandthepropertycontributedverified，withoutovervaluationorundervaluation.Thevaluationoflanduserightsistobedealtwithinaccordancewiththeprovisionsoflawsandadministrativeregulations.
Theamountofindustrialpropertyornon-patentedtechnologycontributedascapitalbasedonitsappraisedvalueshallnotexceedtwentypercentofthe
registeredcapitalofacompany，exceptasotherwisespecifiedbythestatefortheuseoftheresultsofnewandhightechnology.
Article25Shareholdersshallpayinfulltheirrespectivesubscribedcapitalcontributionsspecifiedinthearticleofassociation.Ifashareholdermakesitscontributionincurrency，thecurrencycontributionshallbedepositedinfullintoatemporaryaccountestablishedwithabankbytheproposedlimitedliabilitycompany；ifthecontributionistobemadeininvestmentinkind，industrialproperty，non-patentedtechnologyorlanduserights，proceduresfortransferofthepropertyrightsshallbedealtwithinaccordancewiththelaw.
Ifashareholderdoesnotpayitssubscribedcapitalcontributioninaccordancewiththeprovisionsoftheprecedingparagraph，suchshareholdershallbeliablefordefaulttotheothershareholderswhohavefullypaidtheircapitalcontributions.

Article26Aftertheshareholdershavepaidinfulltheirsubscribedcapitalcontributionsalegallyauthorizedinvestmentverificationauthoritymustverifytheinvestmentandissuecertificate.
Article27Uponverificationbyalegallyauthorizedinvestmentverificationauthorityofallcapitalcontributionsofshareholders，adesignatedrepresentativeorjointlyappointedagentofalltheshareholdersappliestothecompany
registrationauthoritytoregistertheestablishmentofthecompany，submittingthecompanyregistrationapplication，thecompany'sarticleofassociation，investmentverificationcertificateandotherdocuments.
Ifexaminationandapprovalfromrelevantdepartmentsisrequiredinaccordancewithanylaworadministrativeregulation，theapprovaldocumentsshallbesubmittedwhenapplyingtoregistertheestablishmentofthecompany.
WheretheconditionsrequiredbythisLawaremet，thecompanyregistrationauthorityregistersthecompanyandissuesacompanybusinesslicence.WheretheconditionsofthisLawarenotmet，thecompanyisnotregistered.
Thedateofissueofthebusinesslicenceisthedateofestablishmentofalimitedliabilitycompany.
Article28Aftertheestablishmentofalimitedliabilitycompany，iftheactualvaluesoftheinvestmentinkind，industrialproperty，non-patentedtechnologyorlanduserightsareobviouslylowerthanthevaluessetinthearticlesofassociation，thedifferenceshallbemadeupbytheshareholder（s）whocontributedsuchinvestment，andothershareholdersatthetimeoftheestablishmentofthecompanyshallbejointlyliableforthedifference.
Article29Ifabranchorbranchesofalimitedliabilitycompanyisestablishedatthesametimealimitedliabilitycompanyisestablished，applicationfortheregistrationofthebranch（es）shallbemadetothecompanyregistrationauthoritytoobtainthebusinesslicence（s）。
Ifabranchorbranchesofalimitedliabilitycompanyareestablishedaftertheestablishmentofthecompany，applicationforregistrationshallbemadebythelegalrepresentativeofthecompanytothecompanyregistrationauthoritytoobtainthebusinesslicence（s）。
Article30Aninvestmentcertificateshallbeissuedtoeachoftheshareholdersupontheestablishmentofalimitedliabilitycompany.Aninvestmentcertificateshallsetoutthefollowing：（1）thecompany'sname；

（2）thecompany'sdateofregistration；（3）thecompany'sregisteredcapital；
（4）theshareholder'snameandtheamountanddateofpaymentofcapitalcontribution；and
（5）thenumberanddateofissueoftheinvestmentcertificate.Aninvestmentcertificateissealedwiththecompany'sseal.Article31Alimitedliabilitycompanyshallestablisharegisterofshareholderssettingoutthefollowing：
（1）theshareholders'namesanddomiciles；
（2）theshareholders'amountsofcapitalcontributions；and（3）thenumbersoftheinvestmentcertificates.
Article32Shareholdershavetherighttoexaminetheminutesofshareholders'meetingsandthecompany'sfinancialandaccountingreports.
Article33Shareholdersareentitledtoreceivedividendsinaccordancewiththeproportionsoftheircapitalcontributions.Shareholdershaveapreemptiverighttosubscribecapitalwhenacompanyincreasesitscapital.
Article34Shareholdersshallnotwithdrawtheircapitalcontributionsaftertheregistrationofacompany.
Article35Shareholdersmaytransferamongthemselvesallorpartoftheircapitalcontributions.
Whereashareholdertransfersitscapitalcontributiontoapersonotherthanashareholder，theconsentofmorethanhalfofallshareholdersshallberequired.Ashareholderobjectingtosuchtransfershallpurchasethecapitalcontributiontobetransferredandsuchshareholderisdeemedtohaveagreedtothetransferifhedoesnotpurchasethecapitalcontribution.
Foratransferofcapitalcontributionwhichistransferredwiththeconsentoftheshareholders，othershareholdershaveapre-emptiverighttopurchaseitonthesameconditions.
Article36Afterashareholdertransfersitscapitalcontributioninaccordancewiththelaw，thecompanyrecordsintheregisterofshareholdersthenameofthetransferee，itsdomicileandtheamountofthecapitalcontributiontransferred.

Section2OrganizationalStructure
Article37Theshareholder'smeetingsofalimitedliabilitycompanyaremadeupofallshareholders.Theshareholders'meetingisthecompany'sauthoritativeorganization，exercisingitspowersinaccordancewiththisLaw.Article38Theshareholders'meetingexercisesthefollowingpowers：（1）todecideonthecompany'soperationalpoliciesandinvestmentplans；（2）toelectandreplacedirectorsanddecideonmattersrelatingtotheremunerationofdirectors；
（3）toelectandreplacethesupervisorswhoarerepresentativesoftheshareholders，anddecideonmattersrelatingtotheremunerationofsupervisors；（4）toexamineandapprovereportsoftheboardofdirectors；
（5）toexamineandapprovereportsoftheboardofsupervisorsoranysupervisor（s）；
（6）toexamineandapprovethecompany'sproposedannualfinancialbudgetandfinalaccounts；
（7）toexamineandapprovethecompany'splansforprofitdistributionandrecoveryoflosses；
（8）todecideonincreasesinorreductionsofthecompany'sregisteredcapital；（9）todecideontheissueofbondsbythecompany；
（10）todecideontransfersofcapitalcontributionbyshareholderstoapersonotherthanashareholder；
（11）todecideonissuesuchasmerger，division，changeincorporateformordissolutionandliquidationofthecompany；and（12）toamendthecompany'sarticlesofassociation.
Article39ExceptasotherwiseprovidedinthisLaw，methodsofdiscussionandvotingproceduresforshareholders'meetingsarespecifiedinthecompany'sarticlesofassociation.
Aresolutionforanincreaseinorreductionofregisteredcapital，division，merger，dissolutionorchangeincorporateformofthecompanyshallbepassedbyshareholdersrepresentingtwo-thirdsormoreofthevotingrights.

Article40Acompanymayamenditsarticlesofassociation.Aresolutiontoamendthecompany'sarticlesofassociationshallbepassedbyshareholdersrepresentingtwo-thirdsormoreofthevotingrights.
Article41Shareholdersshallexercisevotingrightsatshareholders'meetingsinaccordancewiththeproportionsoftheircapitalcontribution.
Article42Thefirstshareholders'meetingisconvenedandpresidedoverbytheshareholderwhosecapitalcontributionisthelargest.SuchshareholderexercisesitsrightsinaccordancewiththisLaw.
Article43Shareholders'meetingsaredividedintoregularmeetingsandinterimmeetings.
Regularmeetingshallbeconvenedontimeinaccordancewiththeprovisionsofthearticlesofassociation.Shareholdersrepresentingone-fourthormoreofthevotingrightsorone-thirdormoreofthedirectorsorsupervisorsmayrequestthataninterimmeetingbeconvened.
Wherealimitedliabilitycompanyhasaboardofdirectors，shareholders'meetingsareconvenedbytheboardofdirectorsandpresidedoverbythechairmanoftheboardofdirectors.Ifthechairmanoftheboardofdirectorsisunabletoperformhisdutiesforaparticularreason，thevice-chairmanoranotherdirectordesignatedbythechairmanpresidesoverthemeeting.
Article44Whenconveningashareholders'meeting，noticeshallbegiventoallshareholdersfifteendaysbeforethemeetingisconvened.
Shareholders'meetingsshallkeepminutesofthedecisionsmadeonmattersdiscussed.Theminutesshallbesignedbytheshareholderspresentatthemeeting.Article45Alimitedliabilitycompanyhasaboardofdirectorswiththreetothirteenmembers.
Foralimitedliabilitycompanyestablishedwiththeinvestmentoftwoormorestate-ownedenterprisesortwoormorestate-ownedinvestmententities，membersofitsboardofdirectorsshallincluderepresentativesofthestaffandworkersofthecompany.Representativesofstaffandworkersontheboardofdirectorsarechosenbythecompany'sstaffandworkersbydemocraticelection.
Theboardofdirectorshasonechairmanandmayhaveoneortwovice-chairmen.Themethodofelectionofthechairmanandvice-chairmenisspecifiedinthearticlesofassociation.

Thechairmanoftheboardofdirectorsisthelegalrepresentativeofthecompany.
Article46Theboardofdirectorsisresponsibletotheshareholders'meetingsandexercisesthefollowingpowers：
（1）toberesponsibleforconveningshareholders'meetingsandaccountabletotheshareholders'meeting；
（2）toimplementtheresolutionsoftheshareholders'meeting；
（3）todecideontheoperationalplansandinvestmentplanofthecompany；（4）toformulatethecompany'sproposedannualfinancialbudgetandfinalaccounts；
（5）toformulateplansforprofitdistributionandrecoveryoflosses；（6）toformulateplansforincreasesinorreductionsofthecompany'sregisteredcapital；
（7）toprepareplansformerger，division，changeincorporateformanddissolutionofthecompany；
（8）todecideonthesetupofthecompany'sinternalmanagementstructure；（9）toappointordismissthecompany'smanager（generalmanager）（the“manager”）andpursuanttothemanager'snominationstoappointordismissthedeputymanagerandthefinancialofficersofthecompanyanddecideupontheirremuneration；and
（10）toformulatethecompany'sbasicmanagementsystem.
Article47Thetermofofficeofthedirectorsisasprovidedinthecompany'sarticlesofassociation，providedthateachtermshallnotbelongerthanthreeyears.Attheendofadirector'sterm，thedirectormayserveanothertermifre-elected.
Theshareholders'meetingshallnotwithoutreasonremoveadirectorfromofficebeforetheexpireofthatdirector'sterm.
Article48Meetingsoftheboardofdirectorsareconvenedandpresidedoverbythechairman.Whenthechairmanisunabletoperformhisdutiesforaparticularreason，thevice-chairmanoranotherdirectordesignatedbythechairmanconvenesandpresidesoverthemeetings.One-thirdormoreofthedirectorsmayrequestthataninterimmeetingbeconvened.

Article49ExceptasotherwiseprovidedinthisLaw，methodsofdiscussionandvotingproceduresfortheboardofdirectorsareprovidedforinthecompany'sarticlesofassociation.
Whenconveningameetingoftheboardofdirectors，noticeofthemeetingshallbegiventoalldirectorstendaysbeforethemeetingisconvened.
Theboardofdirectorsshallkeepminutesofthedecisionsmadeonmattersdiscussed.Suchminutesshallbesignedbythedirectorspresentatthemeeting.Article50Alimitedliabilitycompanyhasamanagerwhoisappointedordismissedbytheboardofdirectors.Themanagerisresponsibletotheboardofdirectorsandexercisesthefollowingpowers：
（1）tobeinchargeofthecompany'sproduction，operationsandmanagementandorganizetheimplementationoftheresolutionsoftheboardofdirectors；（2）toorganizetheimplementationofthecompany'sannualbusinessplanandinvestmentplan；
（3）toproposeplansfortheputtinginplaceofthecompany'sinternalmanagementstructure；
（4）toproposethecompany'sbasicmanagementsystem；
（5）toformulatespecificrulesandregulationsforthecompany；（6）toproposetheappointmentordismissalofthecompany'sdeputymanager（s）andfinancialofficers；
（7）toappointordismissmanagementofficersotherthanthoserequiredtobeappointedordismissedbytheboardofdirectors；and
（8）otherpowersconferredbythecompany'sarticlesofassociationandtheboardofdirectors.
Themanagerispresentatmeetingsoftheboardofdirectors.
Article51Alimitedliabilitycompanywitharelativelysmallnumberofshareholdersandofarelativelysmallscalemayhaveoneexecutivedirectorandnoboardofdirectors.Theexecutivedirectormayalsobethecompany'smanager.Thepowersoftheexecutivedirectorshallbespecifiedinthecompany'sarticlesofassociationwithreferencetotheprovisionsofArticle46ofthisLaw.

Wherealimitedliabilitycompanyhasnoboardofdirectors，theexecutivedirectoristhelegalrepresentativeofthecompany.
Article52Alimitedliabilitycompanywitharelativelylargescaleof
operationsshallhaveaboardofsupervisorswithnotlessthanthreemembers.Theboardofsupervisorselectsaconvenerfromamongitsmembers.
Theboardofsupervisorsismadeupofrepresentativesofshareholdersandareasonableproportionofrepresentativesfromthecompany'sstaffandworkers，thespecificproportiontobeprovidedinthecompany'sarticlesofassociation.Representativesofthestaffandworkersontheboardofsupervisorsarechosenbythecompany'sstaffandworkersbydemocraticelection.
Alimitedliabilitycompanywitharelativelysmallnumberofshareholdersandofasmallscalemayhaveonetotwosupervisors.
Thedirectors，managerandfinancialofficersofthecompanyshallnotactconcurrentlyassupervisors.
Article53Thetermofofficeofthesupervisorsisthreeyears.Attheendofasupervisor'sterm，thesupervisormayserveanotherterm，ifreelected.Article54Theboardofsupervisorsassupervisor（s）exercisesthefollowingpowers：
（1）toinspectthecompany'sfinancialsituation；
（2）toexercisesupervisionovertheactsofthedirectorsandmanagercarriedoutwhileperformingtheircorporatefunctionswhichviolatelaws，regulationsorthecompany'sarticlesofassociation；
（3）todemandremediesfromadirectorormanagerwhentheactsofsuchdirectorormanagerareharmfultothecompany'sinterests；
（4）toproposetheconveningofaninterimshareholders'meeting；and（5）otherpowersspecifiedinthecompany'sarticlesofassociation.Thesupervisorsarepresentatmeetingsoftheboardofdirectors.
Article55Whenconsideringanddecidingonthewages，welfareandproductionsafetyofthestaffandworkersandlabourprotection，labourinsuranceandotherissuesinvolvingthepersonalinterestsofthestaffandworkers，thecompanyshallfirstsolicitandconsidertheopinionsofthecompany'stradeunionandstaffandworkers，andshallinviterepresentativesfromthetradeunionandthestaffandworkerstoattendtherelevantmeetings.

Article56Whenconsideringanddecidingonmajorissuesrelatingtothecompany'sproductionandoperationsandformulatingimportantrulesand
regulations，thecompanyshallsolicitandconsidertheopinionsandproposalsofthecompany'stradeunionandstaffandworkers.
Article57Anyofthefollowingpersonsshallnotserveasadirector，supervisorormanagerofacompany：
（1）personswithoutcivilcapacityorwithrestrictedcivilcapacity；（2）personswhohavecommittedtheoffencesofcorruption，bribery，infringementofproperty，misappropriationofpropertyorsabotagingthe
socioeconomicorder，andhavebeensentencedtocriminalpenalties，wherelessthanfiveyearshaveelapsedsincethedateofcompletionofthesentence；orpersonswhohavebeendeprivedoftheirpoliticalrightsduetocriminaloffences，wherelessthanfiveyearshaveelapsedsincethedateofthecompletionofimplementationofthisdeprivation；
（3）personswhoareformerdirectors，factorydirectorsormanagersofacompanyorenterprisewhichhasbecomebankruptandbeenliquidatedasaresultofmismanagementandarepersonallyliableforthebankruptcyofsuchcompanyorenterprise，wherelessthanthreeyearshaveelapsedsincethedateofthecompletionofthebankruptcyandliquidationofthecompanyorenterprise；
（4）personswhowerelegalrepresentativesofacompanyorenterprisewhichhaditsbusinesslicencerevokedduetoaviolationofthelawandwhoarepersonallyliable，wherelessthanthreeyearshaveelapsedsincethedateoftherevocationofthebusinesslicence；or
（5）personswhohavearelativelylargeamountofdebtsdueandoutstanding.Whereacompanyelects，nominatesorappointsanydirectororsupervisororemploysamanagercontrarytotheprovisionsoftheprecedingclause，suchelection，appointmentoremploymentisineffective.
Article58Statecivilservantsshallnotactconcurrentlyasacompany'sdirector，supervisorormanager.
Article59Thedirectors，supervisorsormanagersshallabidebythecompany'sarticlesofassociation，faithfullyexecutetheirofficialdutiesandprotectthecompany'sinterests.Theyshallnotexploittheirpositionandpowerinthecompanytoadvancetheirownprivateinterests.

Thedirectors，supervisorsormanagersofacompanyshallnotexploittheirpositiontoacceptbribesorotherillegalincomeorwrongfullytakeovercompanyproperty.
Article60Thedirectorsormanagersshallnotmisappropriatecompanyfundsorloansuchfundstoothers.
Thedirectorsormanagersshallnotopenaccountsintheirownnamesorinthenamesofotherindividualsforthedepositofthecompany'sassets.
Thedirectorsormanagersshallnotprovideaguaranteefordebtsofashareholderofthecompanyorotherindividual（s）withthecompany'sassets.Article61Thedirectorsormanagersshallnotengageontheirownbehalforonbehalfofothersinanybusinesssimilartothebusinessofthecompanyinwhichtheyholdofficeorinactivitiesharmfultothecompany'sinterests.Theproceedsfromsuchbusinessoractivitiesshallbelongtothecompany.
Unlessotherwiseprovidedinthecompany'sarticlesofassociationorwiththeconsentofashareholders'meeting，adirectorormanagershallnotenterintoanycontractsortransactionswiththecompany.
Article62Thedirectors，supervisorsormanagersshallnotdisclosethesecretsofthecompanyexceptinaccordancewiththeprovisionsofthelaworwiththeconsentofashareholders'meeting.
Article63Whereadirector，supervisorormanagerofacompanyviolatesthelaw，administrativeregulationsorthecompany'sarticlesofassociationwhileperforminghisofficialcorporatedutiesresultinginharmtothecompany，suchdirector，supervisorormanagershallbeliablefordamages.Section3WhollyState-OwnedCompanies
Article64“Awhollystate-ownedcompany”inthisLawreferstoalimitedliabilitycompanyinwhichastate-authorizedinvestmentinstitutionora
state-authorizeddepartmentisthesoleinvestorandwhichisestablishedsolelybyastate-authorizedinvestmentinstitutionorbyastate-authorizeddepartment.AcompanydesignatedbytheStateCouncilfortheproductionofspecialproductsorbelongingtoaspecifiedtradeshallbeestablishedintheformofawhollystate-ownedcompany.
Article65Thearticlesofassociationofawhollystate-ownedcompanyareformulatedinaccordancewiththisLawbythestate-authorizedinvestmentinstitutionorthestate-authorizeddepartmentorformulatedbytheboardof

directors，andreportedtothestate-authorizedinvestmentinstitutionorthestate-authorizeddepartmentforapproval.
Article66Awhollystate-ownedcompanydoesnothaveshareholders'meetings.Thecompany'sboardofdirectorsisauthorizedbythestate-authorizedinvestmentinstitutionorthestate-authorizeddepartmenttoexercisepartofthepowersoftheshareholders'meetings，decideonthemajorissuesofthecompany，providedthatdecisionsonmerger，division，dissolutionofthecompany，increaseordecreaseincapitalandissueofcorporatebondsshallbedecidedbythestate-authorizedinvestmentinstitutionorthestate-authorizeddepartment.Article67Thestate-authorizedinvestmentinstitutionorthestate-authorizeddepartmentshallexercisesupervisionandmanagementoverthestate-ownedassetsofawhollystate-ownedcompanyinaccordancewiththeprovisionsoflawandadministrativeregulations.
Article68Awhollystate-ownedcompanyshallhaveaboardofdirectorswhichcarriesoutitsdutiesinaccordancewiththeprovisionsofArticle46andArticle66ofthisLaw.Thetermofofficeoftheboardofdirectorsisthreeyears.Theboardofdirectorshasthreetoninemembers，appointedorreplacedbythestate-authorizedinvestmentinstitutionorthestate-authorizeddepartmentinaccordancewiththeboardofdirectors'terms.Membersoftheboardofdirectorsshallincluderepresentativesofthestaffandworkersofthecompany.
Representativesofthestaffandworkersontheboardofdirectorsarechosenbythecompany'sstaffandworkersbydemocraticelection.
Theboardofdirectorshasachairmanandmayhaveonevice-chairmanifnecessary.Thechairmanandthevice-chairmanaredesignatedfromamongthedirectorsbythestate-authorizedinvestmentinstitutionorthestate-authorizeddepartment.Thechairmanoftheboardofdirectorsisthelegalrepresentativeofthecompany.
Article69Awhollystate-ownedcompanyshallhaveamanagerwhoisappointedordismissedbytheboardofdirectors.ThemanagerexerciseshispowersinaccordancewiththeprovisionsofArticle50ofthisLaw.
Withtheconsentofthestate-authorizedinvestmentinstitutionorthestate-authorizeddepartment，membersoftheboardofdirectorsmayactconcurrentlyasmanager.
Article70Thechairmanandvice-chairmanoftheboardofdirectors，directorsandthemanagerofawhollystate-ownedcompanyshallnotactconcurrentlyasofficersofotherlimitedliabilitycompanies，companieslimitedbysharesorother

economicorganizationswithouttheconsentofthestate-authorizedinvestmentinstitutionorthestate-authorizeddepartment.
Article71Totransferassetsofawhollystate-ownedcompany，inaccordancewiththeprovisionsoflawandadministrationregulations，examinationandapprovalandproceduresfortransferofpropertyrightsarehandledbythestate-authorizedinvestmentinstitutionorthestate-authorizeddepartment.
Article72Large-scalewhollystate-ownedcompanieswithasoundsystemofoperationandmanagementandwhoseoperationalsituationisrelativelygoodmaybeauthorizedbytheStateCounciltoexerciserightsastheowneroftheassets.Chapter3EstablishmentandOrganizationalStructureofACompanyLimitedbyShares
Section1Establishment
Article73Establishmentofacompanylimitedbysharesshallbesubjecttothefulfillmentofthefollowingconditions：
（1）thenumberofpromotersmeetstherequirementofthelaw；
（2）thesharecapitalsubscribedbythepromotersandbypublicoffermeetstheminimumamountofcapitalrequiredbylaw；
（3）theissueofsharesandrelatedpreliminarymatterscomplywiththeprovisionsoflaw；
（4）articlesofassociationareformulatedbythepromotersandadoptedbythefoundingmeeting；
（5）thereisacompanynameandtheestablishmentofanorganizationalstructurecomplyingwiththerequirementsfortheestablishmentofacompanylimitedbyshares；and
（6）thereisafixedsiteforproductionandoperationsandthenecessaryconditionsforproductionandoperations.
Article74Alimitedliabilitycompanymaybeestablishedbymeansofpromotionoroffer.
Establishmentbythepromotermethodmeanstheestablishmentofacompanybythesubscriptionbythepromotersforallthesharestobeissuedbythecompany.

Establishmentbytheoffermethodmeansestablishmentofacompanybythesubscriptionbythepromotersofpartofthesharestobeissuedbyacompanyandapublicofferoftheremainingpartoftheshares.
Article75TheestablishmentofacompanylimitedbysharesshallhaveatleastfivepromotersincludingmorethanhalfofthepromoterswithdomicileswithinChineseterritory.
Whenastate-ownedenterpriseisreorganizedintoacompanylimitedbyshares，theremaybelessthanfivepromoters，buttheoffermethodshallbeadoptedforitsestablishment.
Article76ThepromotersofacompanylimitedbysharesshallsubscribeforsharesforwhichtheyarerequiredtosubscribeinaccordancewiththisLawandshallberesponsibleforthepreparationoftheestablishmentofthecompany.
Article77TheestablishmentofacompanylimitedbysharesshallbeapprovedbythedepartmentauthorizedbytheStateCouncilorbytheprovincial-levelpeople'sgovernment.
Article78Theregisteredcapitalofacompanylimitedbyshareisthetotalsharecapitalwhichhasbeenregisteredwiththecompanyregistrationauthorityandwhichhasbeenactuallyreceived.
TheminimumamountoftheregisteredcapitalofacompanylimitedbysharesisRMB10，000，000.Requirementsfortheminimumamountoftheregisteredcapitalofacompanylimitedbysharestobehigherthantheaboveamountareprovidedforinseparatelawsoradministrativeregulations.
Article79Thearticlesofassociationofacompanylimitedbysharesshallsetoutthefollowing：
（1）thecompany'snameanddomicile；（2）thecompany'sscopeofbusiness；（3）thecompany'smethodofestablishment；
（4）thetotalshares，valuepershareandregisteredcapitalofthecompany；（5）thenamesofthepromotersandthenumberofsharessubscribedbythem；（6）therightsandobligationsoftheshareholders；
（7）thecomposition，powers，termofofficeandrulesofprocedurefordiscussionoftheboardofdirectors；

（8）thecompany'slegalrepresentative；
（9）thecomposition，powers，termofofficeandrulesofprocedurefordiscussionoftheboardofsupervisors；
（10）thecompany'smethodofprofitdistribution；
（11）groundsforthedissolutionofthecompanyandmethodforitsliquidation；（12）proceduresforcompanynoticesandannouncements；and
（13）othermatterswhichtheshareholders'generalmeetingconsidersnecessarytospecify.
Article80Thepromotersmaymakecapitalcontributionsincurrency，ormayinvestinkind，useindustrialproperty，non-patentedtechnologyorlanduserightstomakecapitalcontributionsbasedontheirappraisedvalue.
Forinvestmentinkind，industrialproperty，non-patentedtechnologyorlanduserightswhicharecapitalcontributions，avaluationshallbecarriedout，thepropertycontributed，verifiedandconversionintosharesmade，withoutovervaluationorundervaluation.Thevaluationoflanduserightsistobedealtwithinaccordancewiththeprovisionsoflawsandadministrationregulations.Theamountofindustrialpropertyornon-patentedtechnologycontributedascapitalbasedonitsappraisedvalueshallnotexceedtwentypercentoftheregisteredcapitalofacompany.
Article81Whenastate-ownedenterpriseisreorganizedintoacompanylimitedbyshares，itisstrictlyprohibitedtoundervaluestate-ownedassetsforconversionintoshares，sellthematpricesbelowtheirvalue，ordistributethemwithoutcompensationtoindividuals.
Article82Whereacompanylimitedbysharesistobyestablishedbythepromotermethod，thepromotersshallpaythefullamountforthesharesimmediatelyaftertheyhavesubscribedinwritingforallshareswhichthearticlesofassociationprovidetobeissued.Ifinvestmentinkind，industrialproperty，non-patentedtechnologyorlanduserightsareusedaspaymentfortheshares，proceduresforthetransferofthepropertyrightsshallbedealtwithinaccordancewiththelaw.Theboardofdirectorsandtheboardofsupervisorsshallbeelectedafterthepromotershavepaidallcapitalcontributions.Theboardofdirectorssubmitstothecompanyregistrationauthoritytheapprovaldocument（s），thecompany'sarticlesofassociation，theinvestmentverificationcertificateandotherdocumentsfor

theestablishmentofthecompanyandappliestoregistertheestablishmentofthecompany.
Article83Whereacompanylimitedbysharesistobeestablishedbytheoffermethod，thesharessubscribedforbythepromotersshallnotbelessthanthirty-fivepercentofthetotalnumberofsharesofthecompany.Theremainingportionshallbeofferedtothepublic.
Article84Whenthepromotersoffersharestothepublic，andapplicationfortheoffershallbesubmittedtothesecuritiesadministrationauthoritiesoftheStateCounciltogetherwiththefollowingmajordocuments：
（1）document（s）approvingtheestablishmentofthecompany；（2）thecompany'sarticlesofassociation；（3）theoperatingbudget；
（4）thepromoters'names，thenumberofsharessubscribedbythepromoters，thetype（s）ofcapitalcontributionandinvestmentverificationcertificate；（5）theprospectus；
（6）thenamesandaddressesofthereceivingbankers；and（7）thenamesoftheunderwritersandrelevantagreements.
ThepromotersshallnotofferanysharestothepublicwithoutpriorapprovalofthesecuritiesadministrationauthoritiesoftheStateCouncil.
Article85SubjecttotheapprovalofthesecuritiesadministrationauthoritiesoftheStateCouncil，promotersmaypubliclyoffersharestoinvestorsoutsideChina.TheconcreteproceduresforsuchoffersaresetoutinspecificregulationsoftheStateCouncil.
Article86ThesecuritiesadministrationauthoritiesoftheStateCouncilgrantapprovaltoapplicationsforofferswhichcomplywiththeconditionsprovidedinthisLaw.IftheapplicationsdonotcomplywiththeconditionsprovidedinthisLaw，noapprovalisgranted.
If，aftertheapprovalhasbeengranted，theofferisfoundnottocomplywiththeprovisionsofthisLaw，approvalshallberevoked.Ifshareshavenotbeenoffered，theofferwillnotbecarriedout.Ifshareshavealreadybeenoffered，thesubscribersmaydemandthatthepromotersrefundtheirpaymentsforshareswithinterestatthebank'srateforadepositofthesameterm.

Article87Thearticlesofassociationformulatedbythepromotersshallbeattachedtotheprospectuswhichshallsetoutthefollowing：（1）thenumberofsharessubscribedbythepromoters；（2）theparvaluepershareandissuepriceforeachshare；（3）thetotalnumberofnon-registeredsharesissued；（4）therightsandobligationsofthesubscribers；and
（5）thedurationoftheofferandexplanationthatsubscribersmayrevoketheirsubscriptiontosharesiftheofferisunder-subscribedatthecloseoftheoffer.Article88Inmakingapublicofferofshares，promotersshallpublishaprospectusandpreparesharesubscriptionapplications.Sharesubscriptionapplicationsshallsetouttheitemsstatedintheprecedingarticle.
Subscribersfillinthenumberofsharessubscribed，theamountofpaymentandtheirdomiciles，andsignandsealthesharesubscriptionapplication.
Subscribersmakepaymentforsharesaccordingtothenumberofsharestheyhavesubscribed.
Article89Apublicofferofsharesbypromotersshallbeunderwrittenbysecuritiesinstitutions.establishedinaccordancewiththelaw，andanunderwritingagreementshallbeenteredinto.
Article90Inmakingapublicofferofshares，thepromotersshallenterintoaagreementwiththereceivingbankers.
Thereceivingbankersshallreceiveandholdasagentsthepaymentsforshares，issuereceiptstosubscribersmakingpayments，andshallbeobligedtoissueevidenceofreceiptofpaymentstotherelevantdepartments.
Article91Afterpaymentinfullhasbeenmadeforthesharesissued，anauthorizedinvestmentverificationauthorityshallverifytheinvestmentsandissueaninvestmentverificationcertificate.Thepromotersshallconveneafoundingmeetingwithinthirtydays.Thefoundingmeetingismadeupofthesubscribers.Ifthesharesissuedarenotfullysubscribedaftertheclosingdatespecifiedintheprospectus；orifthepromotersdonotconvincethefoundingmeetingwithinthirtydaysofpaymentinfullhavingbeenmadeforthesharesoffered，thesubscribersmaydemandthatthepromotersrefundtheirpaymentsforsharesplusinterestatthebank'srateforadepositofthesameterm.

Article92Thepromotersshallgivenoticetoallsubscribersormakeanannouncementofthedateofthefoundingmeetingfifteendaysbeforethemeeting.Thefoundingmeetingshallbeheldonlyifsubscribersrepresentinghalformoreofthetotalsharesarepresent.
Thefoundingmeetingexercisesthefollowingpowers：
（1）toexaminethereportofthepromotersonpreparationsfortheestablishmentofthecompany；
（2）toadoptthecompany'sarticlesofassociation；（3）toelectthemembersoftheboardofdirectors；（4）toelectthemembersoftheboardofsupervisors；
（5）toexamineandverifytheexpensesincurredfortheestablishmentofthecompany；
（6）toexamineandverifythevaluationofthepropertyusedbypromotersaspaymentsforshares；and；
（7）inthecaseoftheoccurrenceofforcemajororsubstantialchangestooperatingconditionswhichhaveadirecteffectontheestablishmentofthecompany，aresolutionnottoestablishthecompanymaybemade.
Aresolutionatthefoundingmeetingonanyofthematterssetoutaboverequirestheapprovalofsubscriberswithmorethanhalfofthevotingrightspresentatthemeeting.
Article93Thepromotersandsubscribersshallnotwithdrawtheirsharecapitalaftermakingpaymentsforsharesormakingtheircontributionofcapitalaspaymentforshares，exceptwheretheshareshavenotbeenfullysubscribedwithintheofferperiod，thepromotershavenotconvenedthefoundingmeetingwithintheperiodspecified，oraresolutionnottoestablishthecompanyisadoptedatthefoundingmeeting.
Article94Within30daysoftheconclusionofthefoundingmeeting，theboardofdirectorsshallsubmittothecompanyregistrationauthoritythefollowingdocumentsandshallapplytoregistertheestablishmentofthecompany：（1）approvaldocumentfromtherelevantsupervisingdepartments；（2）minutesofthefoundingmeeting；（3）thecompany'sarticlesofassociation；

（4）theauditors'reportonfinancialmattersrelatingtothepreparationoftheestablishmentofthecompany；
（5）investmentverificationcertificate；
（6）thenamesanddomicilesofmembersoftheboardofdirectorsandboardofsupervisors；and
（7）thenameanddomicileofthelegalrepresentative.
Article95Thecompanyregistrationauthorityshall，withinthirtydaysfromthedateofreceiptofanapplicationtoregistertheestablishmentofacompanylimitedbysharesdecidewhetherornottograntregistration.RegistrationisgrantedandabusinesslicenceissuedifalltheconditionssetoutinthisLawaremet.RegistrationisnotgrantediftheconditionssetoutinthisLawarenotmet.Thedateofissueofthebusinesslicenceisthedateofestablishmentofacompanylimitedbyshares.Afterthecompanyisestablished，apublicannouncementshallbemade.
Aftertheregistrationandestablishmentofacompanylimitedbyshares，inthecaseofestablishmentbytheoffermethod，areportontheofferofsharesshallbefiledwiththesecuritiesadministrationauthoritiesoftheStateCouncilfortherecord.
Article96Whereabranchorbranchesaretobesetupatthesametimeastheestablishmentofacompanylimitedbyshares，applicationshallbemadetothecompanyregistrationauthoritytoregisteritorthemandobtainbusinesslicence（s）。
Whereabranchorbranchesaretobesetupaftertheestablishmentofacompanylimitedbyshares，thelegalrepresentativeofthecompanyshallapplytothecompanyregistrationauthoritytoregisteritorthemandobtainbusinesslicence（s）。Article97Promotersofacompanylimitedbysharesshallassumethefollowingresponsibilities：
（1）tobejointlyliableforthedebtsandexpensesarisingfromactionstoestablishthecompany，ifthecompanycannotbeestablished；
（2）tobejointlyliabletorefundsubscribers'paymentsforsharesplusinterestatthebank'srateforadepositofthesameterm，ifthecompanycannotbeestablished；and

（3）toberesponsibleforcompensatingthecompanyfordamagestotheinterestsofthecompanyarisingfromnegligenceofthepromotersduringtheprocessofestablishingthecompany.
Article98AlimitedliabilitycompanybeingconvertedintoacompanylimitedbysharesshallmeettheconditionsforacompanylimitedbysharessetoutinthisLaw，andproceduresfortheestablishmentofacompanylimitedbysharesshallbecarriedoutinaccordancewiththisLaw.
Article99Whenalimitedliabilitycompanyisconvertedintoacompanylimitedbysharesinaccordancewiththelawandwithapproval，thetotalamountofsharesintowhichconversionismadeshallbeequivalenttotheamountofthecompany'snetassets.Whenalimitedliabilitycompanyisconvertedintoacompanylimitedbysharesandincreasesitscapitalbypublicofferofshares，theprovisionsofthisLawconcerningpublicofferofsharesshallbefollowed.
Article100Wherealimitedliabilitycompanyisbeingconvertedintoacompanylimitedbyshares，thecreditors'rightsandindebtednessoftheoriginallimitedliabilitycompanyareassumedbythecompanylimitedbysharesaftertheconversion.Article101Acompanylimitedbysharesshalldeposititsarticlesofassociation，registerofshareholders，minutesofshareholders'generalmeetingsandfinancialandaccountingreportsatthecompany.Section2Shareholders'GeneralMeeting
Article102Acompanylimitedbysharesshallhaveashareholders'generalmeetingmadeupofallshareholders.Theshareholders'generalmeetingisthecompany'sauthoritativeorganizationwhichexercisesitspowersinaccordancewiththisLaw.
Article103Theshareholders'generalmeetingexercisesthefollowingpowers：（1）todecideonthecompany'soperationalpoliciesandinvestmentplans；（2）toelectandreplacedirectorsanddecideonmattersrelatingtotheremunerationofdirectors；
（3）toelectandreplacethesupervisorswhoarerepresentativesoftheshareholdersanddecideonmattersrelatingtotheremunerationofsupervisors；（4）toexamineandapprovereportsoftheboardofdirectors；（5）toexamineandapprovereportsoftheboardofsupervisors；

（6）toexamineandapprovethecompany'sproposedannualfinancialbudgetandfinalaccounts；
（7）toexamineandapprovethecompany'sprofitdistributionplanandplanforrecoveryoflosses；
（8）todecideonincreasesinorreductionsofthecompany'sregisteredcapital；（9）todecideontheissueofbondsbythecompany；
（10）todecideonissuesuchasmerger，division，dissolutionandliquidationofthecompanyandothermatters；and
（11）toamendthecompany'sarticlesofassociation.
Article104Shareholders'generalmeetingsshallbeheldonceeveryyear.Aninterimshareholders'generalmeetingshallbeheldwithintwomonthsunderanyofthefollowingcircumstances：
（1）thenumberofdirectorsislessthantow-thirdsofthenumberofdirectorsrequiredbythisLaworofthenumberofdirectorsspecifiedinthecompany'sarticlesofassociation；
（2）theunrecoveredlossesofthecompany'scapitalreachone-thirdofthecompany'stotalsharecapital；
（3）uponrequestbyshareholdersholdingtenpercentormoreofthesharesofthecompany；
（4）whendeemednecessarybytheboardofdirectors；and（5）whentheboardofsupervisorsproposesconveningit.
Article105Conveningshareholders'generalmeetingsistheresponsibilityofthechairmanoftheboardofdirectorsinaccordancewiththeprovisionsofthisLawandsuchmeetingsarepresidedoverbythechairman.Ifthechairmanisunabletoperformhisdutiesforaparticularreason，thevice-chairmanoranotherdirectordesignatedbythechairmanpresidesoverthemeeting.Whenconveningashareholders'generalmeeting，noticeshallbegiventoallshareholdersthirtydaysbeforethemeeting，statingthematterstobeconsideredatthemeeting.Aninterim
shareholders'generalmeetingshallnotadoptresolutionsonmattersnotstatedinthenotice.
Wherebearersharesareissued，apublicannouncementshallbemadeaboutthemattersintheprecedingparagraphforty-fivedaysbeforethemeeting.

Whereshareholdersofbearersharesarepresentatashareholders'generalmeeting，theirsharesshallbedepositedwiththecompanyfromfivedayspriortotheopeningofthemeetinguntiltheadjournmentofthemeeting.
Article106Shareholderspresentatashareholders'generalmeetinghaveonevoteforeachsharetheyhold.
Resolutionsoftheshareholders'generalmeetingshallbeadoptedwithhalformoreofthevotingrightsheldbyshareholderspresentatthemeeting.Resolutionsoftheshareholders'generalmeetingonmerge，divisionordissolutionofacompanyshallbeadoptedbyshareholderswithtwo-thirdsormoreofthevotingrightspresentatthemeeting.
Article107Amendmentstothearticlesofassociationofthecompanymustbeadoptedbyshareholderswithtwo-thirdsormoreofthevotingrightspresentatthemeeting.
Article108Shareholdersmayappointproxiestoattendshareholders'generalmeetings.Aproxyshallpresenttothecompanyapowerofattorneyfromtheshareholderandshallexercisehisvotingrightswithinthescopeofhisauthorization.
Article109Minutesofdecisionmadeonmattersdiscussedbytheshareholders'generalmeetingshallbekeptandsignedbytheshareholderspresentatthemeetings.Theminutesshallbekepttogetherwiththesignedregisterofshareholdersinattendanceandthepowersofattomeyofshareholderswhoattendedbyproxy.Article110shareholdershavetherighttoexaminethecompany'sarticlesofassociation，minutesofshareholders'generalmeetingsandfinancialandaccountingreports，andtomakeproposalsorinquiriesinrespectofthecompany'soperations.Article111Ifanyresolutionadoptedbyashareholders'generalmeetingortheboardofdirectorsviolatesanylaworadministrativeregulationorinfringesthelawfulrightsandinterestsofshareholders，shareholdershavetherighttoinitiateproceedingsinthepeople'scourttorequirethatsuchactsofviolationorinfringementbestopped.
Section3BoardofDirectors，Manager
Article112Acompanylimitedbyshareshasaboardofdirectorswithfivetonineteenmembers.
Theboardofdirectorsisresponsibletotheshareholders'generalmeetingandexercisesthefollowingpowers：

（1）toberesponsibleforconveningtheshareholders'generalmeetingandreportingonitsworktotheshareholders'generalmeeting；
（2）toimplementtheresolutionsoftheshareholders'generalmeetings；（3）todecideonthecompany'sbusinessplansandinvestmentplans；（4）toformulatethecompany'sproposedannualfinancialbudgetandfinalaccounts；
（5）toformulatethecompany'sprofitdistributionplanandplanforrecoveryoflosses；
（6）toformulateproposalsforincreasesinorreductionsofthecompany'sregisteredcapitalandtheissueofcorporatebonds；
（7）toprepareplansforthemerger，divisionordissolutionofthecompany；（8）todecideontheputtinginplaceofthecompany'sinternalmanagementstructure；
（9）toappointordismissthecompany'smanager，andpursuanttothemanager'snominationstoappointordismissthedeputygeneralmanagerandfinancialofficersofthecompanyanddecideontheirremuneration；and
（10）toformulatethecompany'sbasicmanagementsystem.
Article113Theboardofdirectorshasonechairmanandmayhaveoneortwovice-chairmen.Thechairmanandvice-chairmenareelectedfromthedirectorswiththeapprovalofmorethanhalfofallthedirectors.
Thechairmanoftheboardofdirectorsisthelegalrepresentativeofthecompany.
Article114Thechairmanoftheboardofdirectorsexercisesthefollowingpowers：
（1）topresideovershareholders'generalmeetingsandconveneandpresideovermeetingsoftheboardofdirectors；
（2）tocheckontheimplementationofresolutionsoftheboardofdirectors；and
（3）tosignthecompany'ssharecertificatesandbonds.

Thevice-chairmenassistthechairmaninhiswork.Whenthechairmanisunabletoperformhisduties，thevice-chairmandesignatedbythechairmanperformshisdutiesonhisbehalf.
Article115Thetermofofficeofthedirectorsisspecifiedinthecompany'sarticlesofassociation，provided，however，thateachtermmaynotbelongerthanthreeyears.Attheendofadirector'sterm，thedirectormayserveanothertermifre-elected.
Theshareholders'generalmeetingshallnotwithoutreasonremoveadirectorfromofficebeforetheexpireofthatdirector'sterm.
Article116Meetingsoftheboardofdirectorsareconvenedatleasttwiceayear.Noticeofeachmeetingshallbegiventoalldirectorstendaysbeforethemeeting.
Forconveninganinterimmeetingoftheboardofdirectors，theboardofdirectorsmayprovideforadifferentmethodofgivingnoticeandnoticeperiod.Article117Meetingsoftheboardofdirectorsshallbeheldonlyifhalformoreofthedirectorsarepresent.Resolutionsoftheboardofdirectorsrequiretheapprovalofmorethanhalfofalldirectors.
Article118Thedirectorsshallattendthemeetingsoftheboardofdirectorsinperson.Ifadirectorisunabletoattendameetingforanyreason，hemayappointanotherdirectorbyawrittenpowerofattomeytoattendthemeetingonhisbehalf.Thepowerofattorneyshallsetoutthescopeoftheauthorization.
Theboardofdirectorsshallkeepminutesofresolutionsonmattersdiscussedatthemeetings.Theminutesaresignedbythedirectorspresentatthemeetingandthepersonwhorecordedtheminutes.
Thedirectorsshallberesponsiblefortheresolutionsoftheboardofdirectors.Ifaresolutionoftheboardofdirectorsviolatesthelaw，administrativeregulationsorthecompany'sarticlesofassociationandthisresultsinthecompanysustainingseriouslosses，thedirectorsparticipatingintheresolutionareliabletocompensatethecompany.
However，ifitcanbeproventhatadirectorexpresslyobjectedtotheresolutionwhentheresolutionwasvotedon，andthatsuchobjectionswererecordedintheminutesofthemeeting，suchdirectormaybefreeofliability.
Article119Acompanylimitedbyshareshasamanagerappointedanddismissedbytheboardofdirectors.Themanagerisresponsibletotheboardofdirectorsandexercisesthefollowingpowers：

（1）tobeinchargeofthecompany'sproduction，operationandmanagementandorganizetheimplementationoftheresolutionsoftheboardofdirectors；（2）toorganizetheimplementationofthecompany'sannualbusinessplanandinvestmentplan；
（3）toproposeplansfortheputtinginplaceofthecompany'sinternalmanagementstructure；
（4）toproposethecompany'sbasicmanagementsystem；
（5）toformulatespecificrulesandregulationsforthecompany；
（6）toproposetheappointmentordismissalofthecompany'sdeputymanagerandfinancialofficers；
（7）toappointordismissmanagementpersonnelotherthanthoserequiredtobeappointedordismissedbytheboardofdirectors；and
（8）otherpowersconferredbythecompany'sarticlesofassociationandtheboardofdirectors.
Themanagerispresentatmeetingsoftheboardofdirectors.
Article120Theboardofdirectorsmay，asrequired，authorizethechairmanoftheboardofdirectorstoexercisepartofthepowersoftheboardofdirectorsduringtheperiodwhentheboardofdirectorsisnotinsession.
Article121Whenconsideringanddecidingonthewages，welfareandproductionsafetyofstaffandworkersandlabourprotection，labourinsuranceandotherissuesinvolvingthepersonalinterestsofstaffandworkers，thecompanyshallfirstsolicitandconsidertheopinionsandproposalsofthecompany'stradeunionandthestaffandworkers，andshallinviterepresentativesfromthecompany'stradeunionandthestaffandworkerstoattendtherelevantmeetings.
Article122Whenconsideringanddecidingonmajorissuesrelatingtothecompany'sproductionandoperationandformulatingimportantrulesandregulations，thecompanyshallsolicitandconsidertheopinionsandproposalsofthecompany'stradeunionandthestaffandworkers.
Article123Thedirectorsandmanagershallabidebythecompany'sarticlesofassociation，faithfullyexecutetheirofficialduties，andprotectthecompany'sinterests.Theyshallnotexploittheirpositionandpowerinthecompanytoadvancetheirownprivateinterests.

TheprovisionsofArticle57toArticle63ofthisLawonpersonsnoteligibleforthepositionsofdirectorandmanagerandontheobligationsanddutiesofthedirectorsandmanagerareapplicabletothedirectorsandmanagerofacompanylimitedbyshares.
Section4BoardofSupervisors
Article124Acompanylimitedbyshareshasaboardofsupervisorsmadeupofnotlessthanthreemembers.Theboardofsupervisorsshallchooseaconvenerfromamongitsmembers.
Theboardofsupervisorsismadeupofrepresentativesoftheshareholdersandareasonableproportionofrepresentativesofthecompany'sstaffandworkers，thespecificproportiontobeprovidedforinthecompany'sarticlesofassociation.Representativesofthestaffandworkersontheboardofsupervisorsarechosenbythecompany'sstaffandworkersbydemocraticelection.
Thedirectors，managerandfinancialofficersshallnotactconcurrentlyassupervisors.
Article125Thetermofofficeofthesupervisorsisthreeyears.Attheendofasupervisor'sterm，thesupervisormayserveanothertermifre-elected.Article126Theboardofsupervisorsexercisesthefollowingpowers：（1）toinspectthecompany'sfinancialsituation；
（2）toexercisesupervisionovertheactsofthedirectorsandmanagercarriedoutwhileperformingtheircorporatefunctionswhichviolatelaws，regulationsorthecompany'sarticlesofassociation；
（3）todemandremediesfromadirectorormanagerwhentheactsofsuchdirectorormanagerareharmfultothecompany'sinterests；
（4）toproposetheconveningofaninterimshareholders'generalmeeting；and（5）otherpowersspecifiedinthecompany'sarticlesofassociation.Supervisorsarepresentatmeetingsoftheboardofdirectors.
Article127Thediscussionmethodsandvotingproceduresoftheboardofsupervisorsarespecifiedinthecompany'sarticlesofassociation.
Article128Thesupervisorsshallfaithfullyexecutetheirsupervisorydutiesinaccordancewithlaws，administrativeregulationsandthecompany'sarticlesofassociation.

TheprovisionsofArticles57toArticle59andArticles62toArticle63ofthisLawonpersonsnoteligibleforthepositionofsupervisorandontheobligationsanddutiesofsupervisorsareapplicabletosupervisorsofacompanylimitedbyshares.
Chapter4IssueandTransferofSharesbyACompanyLimitedbySharesSection1IssueofShares
Article129Thecapitalofacompanylimitedbysharesisdividedintoshares.Eachshareisofequalvalue.
Sharesinacompanytaketheformofsharecertificates.Asharecertificatesignedandissuedbythecompanyisanevidencethattheshareisheldbytheshareholder.
Article130Theissueofsharesispublic，fairandimpartial.Sharesofthesameclassmusthavethesamerightsandbenefits.
Forsharescertificatesissuedatthesametime，eachshareshallhavethesameissuetermsandprice.Thesharepriceforeachsharepurchasedbyanyorganizationorindividualmustbethesame.
Article131Thesharecertificateissuepricemaybeequaltoorgreaterthantheparvalue，butmaynotbelessthantheparvalue.
SharecertificateswithanissuepriceaboveparvalueshallbeapprovedbythesecuritiesadministrationdepartmentsoftheStateCouncil.
Thepremiumobtainedfromtheissueofsharecertificatesaboveparvalueisallocatedtothecompany'scapitalcommonreservefund.
SpecificregulationsgoverningtheissueofsharecertificatesatapremiumareseparatelyissuedbytheStateCouncil.
Article132SharecertificatestaketheformofpapercertificatesorsuchotherformasspecifiedbythesecuritiesadministrationdepartmentsoftheStateCouncil.Thefollowingitemsshallbesetoutonasharecertificate：（1）thecompany'sname；
（2）thecompany'sregistrationandestablishmentdate；
（3）theclassofthesharecertificate，theparvalueandthenumberofsharesrepresentedbythesharecertificate；and

（4）thenumberofthesharecertificate；
Thesharecertificateissignedbythechairmanoftheboardofdirectorsandsealedbythecompany.
Sharecertificatesofpromotersshallbearthenotation“promoter'ssharecertificate”。
Article133Sharesissuedtopromoters，state-authorizedinvestmentorganizationsandlegalpersonsshallbeintheformofregisteredshare
certificates，shallbearthenameofsuchpromoter，state-authorizedinvestmentorganizationsorlegalperson，andmaynotcarryadifferentaccountnameorberegisteredinthenameofanagent.
Sharesissuedtothegeneralpublicmaybeintheformofregisteredsharecertificatesandalsomaybeintheformofbearersharecertificates.
Article134Acompanyissuingregisteredsharecertificatesshallpreparearegisterofshareholderssettingoutthefollowing：（1）thenameandaddressoftheshareholders；（2）thenumberofsharesheldbyeachshareholder；
（3）thenumber（s）ofthesharecertificate（s）heldbyeachshareholder，and
（4）thedateonwhicheachshareholderacquireditsshares.
Acompanyissuingbearersharecertificatesshallrecordthenumberofsuchsharecertificatesissued，theirnumbersanddatesofissue.
Article135TheStateCouncilmayseparatelyissueregulationsgoverningtheissueofclassesofsharecertificatesnotcoveredbythisLaw.
Article136Acompanylimitedbysharesformallydeliverssharecertificatestoitsshareholdersimmediatelyuponitsregistrationandestablishment.Nosharecertificatesshallbedeliveredpriortotheregistrationandestablishmentofthecompany.
Article137Acompanyissuingnewsharesshallmeetthefollowingconditions：（1）thepreviousissueofshareshasbeenfullysubscribedandatleastoneyearhaveelapsedsincethatissue；

（2）thecompanyhasbeencontinuouslyprofitableforthelastthreeyearsandisabletomakedividendpaymentstoitsshareholders；
（3）therehasbeennofalsereportinginthecompany'sfinancialandaccountingdocumentsduringthelastthreeyears；and
（4）theprojectedprofitrateofthecompanyequalsorexceedstherateofinterestonbankdepositsforthesameterm.
Acompanywhichusesagivenyear'sprofitstoissuenewsharesisnotsubjecttoclause（2）above.
Article138Inorderforacompanytoissuenewshares，resolutionsshallbepassedonthefollowingmattersatameetingoftheshareholders：（1）theclassandquantityofthenewshares；（2）theissuepriceofthenewshares；and
（3）thecommencementandclosingdatesofthenewshareissue；
（4）theclassandquantityofsharestobeissuedtoexistingshareholders.Article139Oncetheshareholdersatashareholders'meetinghavepassedaresolutiontoissuenewshares，theboardofdirectorsshallapplytotheapplytotheauthorizeddepartmentoftheStateCouncilortotheprovinciallevelpeople'sgovernmentforapproval.PublicoffersshallrequiretheapprovalofthesecuritiesadministrationdepartmentsoftheStateCouncil.
Article140Uponreceivingapprovaltoissuenewsharesinapublicoffer，thecompanyshallpublishaprospectusforthenewsharesanditsfinancialstatementswiththeirdetailedschedules，andprepareasharesubscriptionapplication.Apublicofferofnewsharesshallbeunderwrittenbyalegallyestablishedsecuritiesinstitutionandanunderwritingagreementshallbeexecuted.
Article141Acompanyissuingnewsharesmaydetermineitspricingplansinthelightofthecompany'scontinuousprofitabilityandtheincreaseinthevalueofitsproperty.
Article142Afteracompanyissuingnewshareshasfullycollectedthepaymentsforshares，thecompanyshallchangeitsregistrationwiththecompanyregistrationauthorityandissueapublicnotice.Section2TransferofShares

Article143Ashareholdermaytransferhissharesinaccordancewiththelaw.Article144Ashareholder'stransferofitssharesmustbecarriedoutthroughalegallyestablishedstockexchange.
Article145Registeredsharecertificatesaretransferredbymeansofendorsementorbyothermeansasstipulatedbylaworbyadministrativeregulations.Uponthetransferofregisteredsharecertificates，thecompanyrecordsthenameandaddressofthetransfereeintheregisterofshareholders.
Pursuanttothepreviousparagraph，nochangesintheregisterofshareholdersshallbemadewithin30daysbeforetheconveningoftheshareholders'generalmeetingorwithin5daysbeforetherecorddatefortheissueofdividends.Article146Atransferofbearersharecertificatesiseffectiveupondeliveryofthesharecertificatestothetransfereethroughalegallyestablishedstockexchange.
Article147Sharesofacompanyheldbyapromoterofthatcompanyshallnotbetransferredforthreeyearsafterthecompany'sestablishment.
Directors，supervisorsandthemanagerofacompanyshallreporttothatcompanyallthesharesthattheyholdinthecompany，andshallnottransferthemduringtheirtermofoffice.
Article148Astate-authorizedinvestmentinstitutionmaytransferthesharesitholdsinaccordancewiththelawandmayalsopurchasethesharesheldbyothershareholders.Theapprovallimitsandtheregulatoryregimeforsuchsharetransfersandpurchasesareseparatelydeterminedbylaworbyadministrativeregulations.Article149Acompanyshallnotpurchasethecompany'sownsharecertificates，exceptinordertodecreaseitscapitalbycancelingitssharesorwhenitmergeswithanothercompanythatholdsitsshares.
Withintendaysfollowingthepurchaseofthecompany'sownsharecertificatespursuanttothetermsoftheprecedingparagraph，acompanyshall，inaccordancewithapplicablelawandadministrativeregulations，cancelthatportionofitsshares，changeitsregistrationandissueapublicnotice.
Acompanyshallnotacceptthecompany'sownsharecertificatesascollateral.Article150Intheeventregisteredsharecertificatesarestolen，lostordestroyed，theshareholdermay，pursuanttotheproceduresforpublicinvitationtoassertclaimscontainedintheCodeofCivilProcedure，requestthepeople'scourttodeclarethesharecertificatesinvalid.

Afterthesharecertificatesaredeclaredinvalidbythepeople'scourt，theshareholdermay，pursuanttotheproceduresforpublicinvitationtoassertclaims，applytothecompanytohavesharecertificatesre-issued.Section3ListedCompanies
Article151AlistedcompanyreferredtointhisLawmeansacompanylimitedbyshareswhoseissuedsharesareapprovedfortradingonastockexchangebytheStateCounciloritsauthorizedsecuritiesadministrationdepartments.
Article152Acompanylimitedbysharesshallmeetthefollowingrequirementsbeforeapplyingforitssharestobelistedonastockexchange：
（1）thesecuritiesadministrationdepartmentsoftheStateCouncilhaveapprovedthecompany'sstockbeingissuedtothepublic；
（2）thecompany'stotalsharecapitalisnotlessthanRMB50，000，000；（3）thecompanyhasbeeninoperationforoverthreeyearsandhasbeenprofitableineachofthelastthreeyears；ifanoriginalstate-ownedenterprisehasbeenconvertedandthecompanyestablishedaccordingtothelaw，orthecompanyhasbeenreorganizedandestablishedaftertheeffectivedateofthisLawwithalarge-ormedium-sizedstate-ownedenterpriseasitsmainpromoter，thethreeyearperiodsmaybecalculatedcontinuously；
（4）thenumberofshareholderseachholdingsharesofaparvaluetotalingatleastRMB1，000isnotlessthanonethousand；thecompany'ssharesalreadyissuedtothepublicaccountforover25%ofthecompany'stotalshares；ifthecompany'stotalsharecapitalexceedsRMB400，000，000，companysharesalreadyissuedtothepublicaccountforover15%ofthecompany'stotalshares；（5）duringthelastthreeyears，thecompanyhasnotcommittedanysignificantactsinviolationofthelawandthecompany'sfinancialstatementshavenotcontainedanyfalsestatements；and
（6）suchotherconditionsasmaybespecifiedbytheStateCouncil.Article153AcompanylimitedbysharesapplyingtohaveitsshareslistedfortradingshallfileanapplicationforapprovalwiththeStateCounciloritsauthorizedsecuritiesadministrationdepartmentsandsubmitrelevantdocumentsinaccordancewithapplicablelawsandadministrativeregulations.
TheStateCounciloritsauthorizedsecuritiesadministrationdepartmentsgrantapprovaltothoselistingapplicationswhichmeettherequirementsspecifiedinthis

LawanddenyapprovaltothoselistingapplicationswhichdonotmeettherequirementsspecifiedinthisLaw.
Acompanywhichhasbeengrantedapprovalforlistingmustpublishasharelistingreportandkeepitsapplicationdocumentsonfileinadesignatedplaceforpublicinspection.
Article154Sharesofacompanywhichhasbeenapprovedforlistingshalltradeonastockexchangeinaccordancewithapplicablelawsandadministrativeregulations.
Article155IfgrantedapprovalbythesecuritiesadministrationdepartmentsoftheStateCouncil，sharesofacompanymaybelistedabroad，ThespecificmeansarestipulatedbyspecialregulationsissuedbytheStateCouncil.
Article156Pursuanttolawsandadministrativeregulations，alistedcompanyshallperiodicallymakepublicitsfinancialandoperationalconditions.Alistedcompanyshallpublishitsfinancialstatementsonceeverysixmonthsineachfiscalyear.
Article157AlistedcompanyinoneofthefollowingsituationsshallhaveitslistingtemporarilysuspendedupondeterminationbythesecuritiesadministrationdepartmentsoftheStateCouncil：
（1）thecompany'stotalsharecapital，sharedistribution，orothercircumstanceshavechangedsuchthatthecompanynolongermeetsthelistingrequirements；
（2）thecompanydoesnotmakepublicitsfinancialconditionasrequiredbytheregulations，oritsfinancialstatementscontainfalsestatements；（3）thecompanycommitsasignificantviolationoflaw；and（4）thecompanyhashadalossineachofthethreepreviousyears.Article158Alistedcompanyinthesituationdescribedinclause（2）orclause（3）oftheprecedingarticlewhichuponinvestigationisfoundtohavecausedseriousconsequences，oralistedcompanywhichisinthesituationdescribedinclause（1）orclause（4）ofthesamearticleandisunabletoeliminateitwithinalimitedtime，doesnotmeetthelistingrequirements，itslistingshallbeterminatedupondecisionbythesecuritiesadministrationdepartmentsoftheStateCouncil.
Ifacompanyresolvestodissolveitself，orifacompanyislegallyorderedtoclosedownbytheresponsibleadministrativedepartment，orifacompanyis

declaredtobebankrupt，thecompanyshallhaveitslistingterminatedupondecisionbythesecuritiesadministrationdepartmentsoftheStateCouncil.Chapter5CorporateBonds
Article159Acompanylimitedbyshares，awhollystate-ownedcompanyandalimitedliabilitycompanyestablishedwiththeinvestmentbytwoormorestate-ownedenterprisesortwoormorestate-ownedinvestmententities，inordertoraisefundsforproductionandoperations，mayissuecorporatebondsinaccordancewiththisLaw.
Article160“Corporatebonds”asusedinthisLawmeanvaluablesecuritiesissuedbyacompanyinaccordancewithlegallyspecifiedproceduresandpursuanttowhichthecompanycovenantstorepayprincipalandinterestwithinacertainperiodoftime.
Article161Theissueofcorporatebondsshallbesubjecttothefollowingconditions：
（1）thenetassetsofacompanylimitedbysharesarenotlessthanRMB30，000，000，andthenetassetsofalimitedliabilitycompanyarenotlessthanRMB60，000，000；
（2）theaggregateamountofbondsofthecompanydoesnotexceedfortypercentofthenetassetsofthecompany；
（3）theaveragedistributableprofitsoverthepreviousthreeyearsissufficienttodefrayoneyear'sinterestpaymentsonthecompany'sbonds；（4）thefundsraisedareusedinamannerconsistentwithstateindustrialpolicy；
（5）theinterestratepayableonthecorporatebondsdoesnotexceedthelevelssetbytheStateCouncil；and
（6）suchotherconditionsasmaybeprovidedforbytheStateCouncil.Thefundsraisedbycorporatebondsshallbeusedforthepurposesapprovedbytheapprovalauthorityandshallnotbeusedtocoverlossesorfornon-productiveexpenditures.
Article162Acompanyshallnotre-issuecorporatebondsunderanyofthefollowingcircumstances：
（1）thecorporatebondsissuedtheprevioustimehavenotyetbeenfullysubscribed；

（2）thecompanyhasdefaultedonpreviouslyissuedcorporatebondsorotherindebtedness，orislateinthepaymentofprincipalorinterest，andsuchsituationisstillcontinuing.
Article163Whenacompanylimitedbysharesoralimitedliabilitycompanyproposestoissuecorporatebonds，itsboardofdirectorsshalldraftaproposalforapprovalbyresolutionatameetingoftheshareholders.
Theissueofcorporatebondsbyawhollystate-ownedcompanyshallbedecidedbythestate-authorizedinvestmentorganizationorthestate-authorizeddepartment.Oncearesolutionordecisionhasbeenmadepursuanttotheprecedingtwoparagraphs，thecompanyshallsubmitanapplicationforapprovaltothesecuritiesadministrationdepartmentsoftheStateCouncil.
Article164ThescaleofanissueofcorporatebondsshallbedeterminedbytheStateCouncil.ApprovalsbythesecuritiesadministrationdepartmentsoftheStateCouncilofanissueofcorporatebondsshallnotexceedthescaledeterminedbytheStateCouncil.
ThesecuritiesadministrationdepartmentsoftheStateCouncilshallgrantapprovalifanapplicationtoissuecorporatebondssatisfiestherequirementsofthisLawanddenyapprovalifanapplicationtoissuecorporatebondsdoesnotsatisfytherequirementsofthisLaw.
IfanapprovalthathaspreviouslybeengrantedforanapplicationisfoundnottosatisfytherequirementsofthisLaw，theapprovalshallberevoked.Withrespecttocorporatebondsnotyetissued，theissuewillnotbecarriedout.Withrespecttocorporatebondsalreadyissued，theissuingcompanyshallreturnthefundspaidtothesubscribers，togetherwithinterestcalculatedattherateonbankdepositsforthesameterm.
Article165ThecompanyshallsubmitthefollowingdocumentswhenapplyingtothesecuritiesadministrationdepartmentsoftheStateCouncilforapprovaltoissuecorporatebonds：
（1）thecompany'sregistrationcertificate；（2）thecompany'sarticlesofassociation；（3）corporatebondofferprocedure；and
（4）anassetappraisalreportandinvestmentverificationreport.
Article166Uponapprovalofthecompany'sapplicationtoissuecorporatebonds，thecompanyshallmakepublicitscorporatebondofferprocedure.

Thecorporatebondofferprocedureshallsetoutthefollowing：（1）thecompany'sname；
（2）thetotalamountandfacevalueofthebonds；（3）thebonds'interestrate；
（4）theperiodsandmethodforpayingprincipalandinterest；（5）thecommencementandclosingdatesoftheissue；（6）thenetassetsofthecompany；
（7）thetotalamountofcorporatebondsalreadyissuedbutnotyetdue；and（8）theunderwriterforthecorporatebonds.
Article167Whenacompanyissuescorporatebonds，thebondsshallshowinformationincludingthecompany'sname，thefacevalueofthebond，theinterestrate，andthedateofmaturity，andbesignedbythechairmanoftheboardofdirectorsandsealedbythecompany.
Article168Corporatebondsmaybeeitherbearerorregisteredbonds.Article169Acompanywhichissuescorporatebondsshallkeepacorporatebondsregister.
Whenregisteredbondsareissued，thefollowingitemsshallbesetoutintheregister：
（1）thenamesandaddressesofthebondholders；
（2）thedateonwhichthebondwasacquiredbythebondholderanditsnumber；（3）thetotalamountofthebond，itsfacevalue，interestrate，principalandinterestpaymentdatesandmethodofpayments；and（4）theissuedate.
Whenbearerbondsareissued，theregistershallsetoutthetotalamountofthebonds，theinterestrate，thematuritydateandpaymentmethod，thedateofissueandthenumberofthebonds.
Article170Corporatebondsmaybetransferred.Transfersofcorporatebondsshallbecarriedoutthroughalegallyestablishedstockexchange.

Thetransferpriceisnegotiatedandagreeduponbythetransferorandtransferee.
Article171Registeredcorporatebondsaretransferredbythebondholderthroughendorsementorbyothermeansasstipulatedbylaworadministrativeregulations.Uponthetransferofaregisteredcorporatebond，thecompanyrecordsinitscorporatebondregisterthenameandaddressofthetransferee.
Atransferofabearercorporatebondbecomeseffectiveuponthedeliveryofthecorporatebondtothetransfereeatalegallyestablishedstockexchange.Article172Subjecttoaresolutionatageneralmeetingoftheshareholders，alistedcompanymayissuecorporatebondsconvertibleintosharesofthecompany.Theproceduresforconversionarespecifiedinthecorporatebondofferprocedures.TheissueofcorporatebondsconvertibleintosharesshallbesubmittedtothesecuritiesadministrationdepartmentsoftheStateCouncilforapproval.Corporatebondsconvertibleintosharesshallmeetnotonlytherequirementsfortheissueofbondsbutalsotherequirementsfortheissueofshares.
Corporatebondsconvertibleintosharesshallbemarked“convertiblecorporatebonds”，andthequantityofconvertiblecorporatebondsshallberecordedinthecorporatebondregister.
Article173Acompanywhichissuescorporatebondsconvertibleintosharesshallissuesharecertificatestobondholdersinaccordancewithitsconversion
procedures，providedthatthebondholderhastheoptionwhetherornottoconvert.Chapter6FinancialAffairsandAccountingofACompany
Article174Acompanyshallestablishitsfinancialandaccountingsystemsaccordingtolaws，administrativeregulationsandtheregulationsoftheresponsiblefinancedepartmentoftheStateCouncil.
Article175Attheendofeachfiscalyear，thecompanyshallprepareafinancialstatementwhichshallbeexaminedandverifiedasprovidedbylaw.
Thecompany'sfinancialstatementsshallincludethefollowingaccountingstatementsandschedules：（1）balancesheet；
（2）profitandlossstatement；（3）statementoffinancialchanges；

（4）explanationoffinancialcondition；and（5）profitdistributionstatement.
Article176Alimitedliabilitycompanyshallpresentitsfinancialstatementstotheshareholdersinaccordancewiththetimeperiodsspecifiedinthecompany'sarticlesofassociation.
Acompanylimitedbysharesshalldeposititsfinancialstatementsatthecompanyforinspectionbytheshareholdersatleasttwentydaysbeforetheconveningoftheannualgeneralmeetingofshareholders.
Acompanylimitedbysharesestablishedbytheoffermethodshallmakepublicitsfinancialstatements.
Article177Whendistributingeachyear'safter-taxprofits，thecompanyshallsetasidetenpercentofitsafter-taxprofitsforthecompany'sstatutorycommonreservefundandfivepercenttotenpercentofitsprofitsforthecompany'sstatutorycommonwelfarefund.Whentheaggregatebalanceinthestatutorycommonreservefundisfiftypercentormoreoftheregisteredcapitalofthecompany，thecompanyneednotmakeanyfurtherallocationstothatfund.
Whenthecompany'sstatutorycommonreservefundisnotsufficienttomakeupforthecompany'slossesofthepreviousyear，currentyearprofitsshallbeusedtomakeupforthelossesbeforeallocationsaresetasideforthestatutorycommonreservefundorthestatutorycommonwelfarefundinaccordancewiththepreviousclause.
Subjecttoaresolutionoftheshareholders'meeting，afterthecompanyhassetasidefundsfromafter-taxprofitsforthestatutorycommonreservefund，thecompanymaysetasidefundsforadiscretionarycommonreservefund.
Afterthecompanyhasmadeupitslossesandmadeallocationstoitscommonreservefundandstatutorycommonwelfarefund，theremainingprofitsaredistributedinproportiontotheshareholders'capitalcontributionsifthecompanyisalimitedliabilitycompanyandinproportiontothenumberofsharesheldbytheshareholdersifthecompanyisacompanylimitedbyshares.
Ifashareholdersmeetingortheboardofdirectorsviolatestheaboveprovisionsandprofitsaredistributedtotheshareholdersbeforethecompanymakesupforlossesormakesallocationstothestatutorycommonfundandthestatutorycommonreservewelfarefund，theprofitsdistributedinviolationoftheprovisionsmustbereturnedtothecompany.

Article178InaccordancewiththisLaw，thepremiumacompanylimitedbysharesobtainswhenitissuessharesatapricewhichexceedsparvalue，andanyotherincomedesignatedforthecapitalcommonreservefundbytheregulationsoftheresponsiblefinancedepartmentoftheStateCouncilshallbeallocatedtothecompany'scapitalcommonreservefund.
Article179Thecommonreservefundofacompanyisusedtomakeupitslosses，expanditsproductionandoperationsorforconversionintoadditionalcapitalofthecompany.
Whenthecommonreservefundofacompanylimitedbysharesisconvertedtocapitalinaccordancewitharesolutionpassedatageneralmeetingoftheshareholders，thecompanyeitherdistributesnewsharesinproportiontotheshareholders，numberofshares，orincreasestheparvalueofeachshare，provided，however，thatwhenthestatutorycommonreservefundisconvertedtocapital，thebalanceofthestatutorycommonreservefundmaynotfallbelowtwenty-fivepercentoftheregisteredcapital.
Article180Thecompany'sstatutorycommonwelfarefundisusedforthecollectivewelfareofthecompany'sstaffandworkers.
Article181Acompanyshallnotkeepaccountingbooksandrecordsotherthanthoseprovidedbylaw.
Thecompany'sassetsshallnotbeheldinanaccountopenedinthenameofanyindividual.
Chapter7MergerandDivisionofACompany
Article182Aresolutiontoeffectthemergeranddivisionofacompanyshallbepassedatameetingoftheshareholders.
Article183ThemergeranddivisionofacompanylimitedbysharesshallbeapprovedbytheauthorizeddepartmentoftheStateCouncilorbytheprovincialgovernment.
Article184Themergerofacompanymaytaketheformofeithermergerbyabsorptionormergerbytheestablishmentofanewcompany.
Whereonecompanyisabsorbedbyanotherinamergerbyabsorption，theabsorbedcompanyisdissolved.Wheretwoormorecompaniesestablishanewcompanyinamergerbyre-establishment，allmergedpartiesaredissolved.
Intheeventofamerger，themergingpartiesshallexecuteamergeragreementandprepareabalancesheetandaninventoryofproperty.Thecompanyshallnotify

itscreditorswithintendaysofthedateofthecompany'sresolutiontomergeandshallpublishpublicnoticesinanewspaperatleastthreetimeswithinthirtydaysofthedateofthecompany'sresolutiontomerge.Acreditorhastherightwithinthirtydaysofreceivingsuchnoticefromthecompany（or，forcreditorswhodonotreceivethenotice，withinninetydaysofthedateofthefirstpublicnotice）todemandthatthecompanyrepayitsdebtstothatcreditororprovideacorrespondingguaranteeforsuchdebt.Acompanywhichdoesnotrepayitsdebtsorprovidecorrespondingguaranteesforsuchdebtsshallnotbemerged.
Atthetimeofmerger，thecreditors'rightsandindebtednessofeachofthemergedpartiesshallbeassumedbythecompanywhichsurvivesthemergerorthenewlyestablishedcompany.
Article185Whenacompanyisdivided，itspropertyshallbesplitupaccordingly.
Atthetimeacompanyisdivided，thecompanyshallprepareabalancesheetandaninventoryofproperty.Thecompanyshallnotifyitscreditorswithintendaysofthedateofthecompany'sresolutiontodivideandshallpublishpublicnoticesinanewspaperatleastthreetimeswithinthirtydaysofthedateofthecompany'sresolutiontodivide.Acreditorhastherightwithinthirtydaysofreceivingsuchnoticefromthecompany（or，forcreditorswhodonotreceivethenotice，withinninetydaysofthedateofthefirstpublicnotice）todemandthatthecompanyrepayitsdebtstothatcreditororprovideacorrespondingguaranteeforsuchdebt.Acompanywhichdoesnotrepayitsdebtsorprovidecorrespondingguaranteesforsuchdebtsshallnotbedivided.
Debtsofthecompanypriortodivisionareassumedbythepost-divisioncompaniesinaccordancewiththeagreementsenteredinto.
Article186Whenacompanyneedstoreduceitsregisteredcapital，itpreparesabalancesheetandaninventoryofproperty.
Thecompanyshallnotifyitscreditorswithintendaysofthedateofthecompany'sresolutiontoreduceitsregisteredcapitalandshallpublishpublicnoticesinanewspaperatleastthreetimeswithinthirtydaysofthedateofthecompany'sresolutiontoreduceitsregisteredcapital.Acreditorhastherightwithinthirtydaysofreceivingsuchnoticefromthecompany（or，forcreditorswhodonotreceivenotice，withinninetydaysofthedateofthefirstpublicnotice）todemandthatthecompanyrepayitsdebtstothatcreditororprovideacorrespondingguaranteeforsuchdebt.
Theregisteredcapitalofacompanyfollowingsuchcapitalreductionshallnotbelessthantheminimumlevelssetbylaw.

Article187Whenalimitedliabilitycompanyincreasesitsregisteredcapital，theshareholders'subscriptionandpaymentofcontributionsforthenewlyincreasedcapitalarecarriedoutinaccordancewiththerelevantprovisionsofthisLawgoverningpaymentofcapitalcontributionsfortheestablishmentofalimitedliabilitycompany.
Whenacompanylimitedbysharesissuesnewsharesinordertoincreaseitsregisteredcapital，theprocessbywhichshareholderssubscribefornewsharesshallbecarriedoutinaccordancewiththerelevantprovisionsofthisLawgoverningpaymentforsharesfortheestablishmentofacompanylimitedbyshares.Article188Whenacompanymergesordividesandthereisachangeinanyiteminitsregistration，thecompanyshallchangeitsregistrationwiththecompanyregistrationauthorityinaccordancewiththelaw.Whenacompanydissolves，thecompanyshallcancelitsregistrationinaccordancewiththelaw.Whenanewcompanyinestablished，itsestablishmentshallberegisteredinaccordancewiththelaw.Whenacompanyincreasesordecreasesitsregisteredcapital，thecompanyshallcarryoutachangeofregistrationwiththecompanyregistrationauthority.Chapter8Insolvency，DissolutionandLiquidationofACompany
Article189Inthecaseofacompanylegallydeclaredbankruptbecauseitisunabletorepaydebtsdue，thepeople'scourtshall，inaccordancewiththeprovisionsofrelevantlaws，organizetheshareholders，relevantorganizationsandrelevantprofessionalpersonneltoestablishaliquidationgrouptocarryoutbankruptcyliquidationprocedureswithrespecttothecompany.
Article190Acompanymaydissolveinanyofthefollowingsituations：（1）pursuanttotheprovisionsofthecompany'sarticlesofassociation，thetermofthecompanyhasexpiredoroneoftheothereventswhicharegroundsfordissolutionhasoccurred；
（2）aresolutionfordissolutionispassedbyashareholders'meeting；and（3）dissolutionisnecessaryduetoamergerordivisionofthecompany.Article191Aliquidationgroupshallbesetupwithinfifteendaysofacompanybeingdissolvedpursuanttoprovisions（1）or（2）oftheprecedingarticle.Theliquidationgroupofalimitedliabilitycompanyismadeupofitsshareholders.Thecompositionoftheliquidationgroupofacompanylimitedbysharesisdeterminedbyageneralmeetingoftheshareholders.Ifaliquidationgrouptocarryoutliquidationproceduresisnotsetupwithinthespecifiedtimelimit，thecreditorsmayapplytothepeople'scourttohaveitdesignaterelevantpersonstoforma

liquidationgroupinordertocarryoutliquidationprocedures.Thepeople'scourtshallacceptandhearsuchapplicationsandtimelydesignatethemembersoftheliquidationgroupinordertocarryoutliquidationprocedures.
Article192Acompanywhichisorderedaccordingtolawtoclosedownforviolatinglawsandadministrativeregulationsshallbedissolved，andtherelevantresponsibleauthorityshallorganizetheshareholders，relevantinstitutionsandprofessionalpersonneltoestablishaliquidationgrouptocarryoutliquidationprocedures.
Article193Duringtheliquidationperiod，theliquidationgroupshallexercisethefollowingpowers：
（1）tocheckthecompany'spropertyandseparatelyprepareabalancesheetandaninventoryofproperty；
（2）tosendnoticestocreditorsornotifythembypublicnotice；（3）todealwithandliquidaterelevantuncompletedbusinessmattersofthecompany；
（4）topayoffoutstandingtaxes；
（5）toclearcreditors'rightsandindebtedness；
（6）todealwiththepropertyremainingafterthecompany'sdebtshavebeenrepaid；and
（7）torepresentthecompanyinanycivillitigationproceedings.
Article194Theliquidationgroupshall，withintendaysofitsestablishment，sendnoticestocreditors，andwithinsixtydaysofitsestablishmentpublishpublicnoticesinanewspaperatleastthreetimes.Acreditorshall，withinthirtydaysofreceivingnotice，reportitscreditors'rightstotheliquidationgroup，orforcreditorswhodonotreceivenotice，withinninetydaysofthedateofthefirstpublicnotice.
Whenreportingcreditors'rights，thecreditorshallprovideandexplanationofmattersrelevanttothecreditor'srightsandshallprovideevidentiarymaterials.Theliquidationgroupshallcarryoutregistrationofcreditors'rights.Article195Aftercheckingthecompany'spropertyandpreparingabalancesheetandaninventoryofproperty，theliquidationgroupshallformulatealiquidationplanandpresentittoameetingoftheshareholdersortotherelevantresponsibleauthorityforconfirmation.

Totheextentthatthecompanyisabletorepayitsdebts，itshallrespectivelypayallliquidationexpenses，wagesofstaffandworkers，labourinsurancefeesandtaxesowing，andshallrepaythecompany'sdebts.
Theassetsofthecompanyremainingafteritsdebtshavebeenrepaidin
accordancewiththeprovisionsofthepreviousclausearedistributedinproportiontotheshareholderscapitalcontributionsifthecompanyisalimitedliabilitycompanyandinproportiontothenumberofsharesheldbytheshareholdersifthecompanyisacompanylimitedbyshares.
Duringtheliquidationperiod，acompanyshallnotcommenceanynewoperationalactivities.Thepropertyofthecompanyshallnotbedistributedtotheshareholdersuntilthesettlementprovidedforinthesecondparagraphofthisarticleiscomplete.
Article196Afterputtingthecompany'spropertyinorderandpreparingabalancesheetandaninventoryofpropertyinconnectionwithliquidationofthecompanyresultingfromdissolution，theliquidationgroupdiscoversthatthecompany'sassetsareinsufficienttorepaythecompany'sdebts，theliquidationgroupshallimmediatelyapplytothepeople'scourtforabankruptcydeclaration.
Afteracompanyisdeclaredbankruptbyarulingofthepeople'scourt，theliquidationgroupshalltransferliquidationmatterstothepeople'scourt.Article197Afterliquidationofthecompanyiscompleted，theliquidationgroupshallpreparealiquidationreportandpresentitforconfirmationtoameetingoftheshareholdersortotherelevantresponsibleauthority，applytothecompanyregistrationauthorityforcancellationofthecompany'sregistrationandpublishbypublicnoticeoftheterminationofthecompany.Wherenoapplicationismadeforcancellationofthecompany'sregistration，thecompany'sbusinesslicenseisrevokedbythecompanyregistrationauthorityandapublicnoticeispublished.Article198Themembersofaliquidationgroupshallfaithfullyattendtotheirdutiesandcarryouttheirliquidationtasksinaccordancewiththelaw.Themembersofaliquidationgroupshallnotexploittheirpositiontoacceptbribesorotherillegalincome，norshalltheywrongfullytakeoverthepropertyofthecompany.
Themembersofaliquidationgroupwhointentionallyorthroughgrossnegligencecauselossestothecompanyoritscreditorsshallberesponsibleforprovidingcompensation.
Chapter9BranchesofForeignCompanies

Article199PursuanttothisLaw，aforeigncompanymaysetupbrancheswithinChineseterritory，andmayengageinproductionandoperationalactivities.UnderthisLaw，“foreigncompany”meansacompanyregisteredandestablishedoutsideChineseterritoryinaccordancewiththelawofaforeigncountry.Article200TosetupabranchorbrancheswithinChineseterritory，aforeigncompanyshallfileanapplicationwiththeresponsibleChineseauthorities，andpresentitscompany'sarticlesofassociation，thecompany'sregistrationcertificateissuedbyitshomecountryandotherrelevantdocuments.Afterreceivingapproval，thecompanyshallregisterwiththecompanyregistrationauthorityasprovidedbylawandobtainsabusinesslicense.
TheapprovalproceduresforbranchesofforeigncompaniesareseparatelyprovidedforinregulationsissuedbytheStateCouncil.
Article201AforeigncompanywhichestablishesabranchwithinChineseterritoryshallappointarepresentativeoragentinchargeofthebranchandallocatetothebranchappropriatefundsfortheoperationalactivitiesitisengagedin.
Whereitisnecessarytoprovideforaminimumamountofoperationalfundsforbranchesofforeigncompanies，separateregulationsareissuedbytheStateCouncil.Article202Thebranchofaforeigncompanyshallindicateinitsnamethenationalityoftheforeigncompanyandwhetherithaslimitedorunlimitedliability.Thearticlesofassociationoftheforeigncompanyshallbeavailableatitsbranches.
Article203AforeigncompanyisaforeignlegalpersonanditsbranchesestablishedwithinChineseterritorydonothavethestatusofChineselegalpersons.AforeigncompanyassumescivilliabilityfortheoperationalactivitiesofitsbrancheswithinChineseterritory.
Article204AbranchofaforeigncompanyestablishedwithapprovalandengaginginbusinessactivitieswithinChineseterritoryshallabidebythelawsofChinaandshallnotharmthesocialandpublicinterestsofChina.ItslegitimaterightsandinterestsshallbeprotectedbythelawsofChina.
Article205WhenaforeigncompanywithdrawsitsbranchesfromChinese
territory，itshallrepayitsdebtsaccordingtolawandcarryoutliquidationinaccordancewiththeprovisionsoftherelevantcompanyliquidationproceduresset

outinthisLaw.Untilsuchdebtsarerepaid，thepropertyofthebranchshallnotbetransferredoutsideofChineseterritory.Chapter10LegalLiabilities
Article206AcompanywhichviolatesthisLawbyfalselyreportingitsregisteredcapitalwhenregistering，presentingfalsedocumentationoremployingotherdeceptionstoconcealimportantfactsinordertoobtainregistrationofthecompanyshallbeorderedtoremedythesituation.Acompanythatfalselyreportsitsregisteredcapitalshallbefinedatleastfivepercentandnomorethantenpercentoftheamountoftheregisteredcapitalfalselyreported.AcompanythatpresentsfalsedocumentationoremploysotherdeceptionstoconcealimportantfactsshallbefinedatleastRMB10，000andnomorethanRMB100，000.Inseriouscases，thecompany'sregistrationshallbecanceled.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article207Acompanywhichpreparesafalseprospectus，sharesubscriptionapplicationorcorporatebondofferprocedureinconnectionwiththeissueofsharesorcorporatebondsshallbeorderedtohaltsuchissueandreturnallfundsraisedtogetherwithinterest，andisfinedanamountofatleastonepercentandnomorethanfivepercentoftheamountofthefundsillegallyraised.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article208Apromoterorshareholderwhodoesnotpaycashorpropertyinkindordoesnottransferpropertyrights，somakingafalsecapitalcontributionandcommittingfraudagainstcreditorsandthegeneralpublic，shallbeorderedtoremedyhiswrongsandisfinedatleastfivepercentandnomorethantenpercentofthecapitalwhichhefalselycontributed.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.Article209Apromoterorshareholderwhoillicitlywithdrawshiscapitalcontributionaftertheestablishmentofthecompanyshallbeorderedtocorrecthiswrongsandisfinedatleastfivepercentandnomorethantenpercentofthecapitalcontributionillicitlywithdrawn.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article210Acompanywhich，withouthavingobtainedapprovalasprovidedbythisLawfromtherelevantresponsibleauthority，arbitrarilyissuessharesorcorporatebondsisorderedtohaltsuchissueandreturnallfundsraisedtogetherwithinterest，andshallbefinedatleastonepercentandnomorethanfivepercentoftheamountofthefundsillegallyraised.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.

Article211AcompanywhichviolatesthisLawbykeepingaccountingbooksandrecordsotherthanthoseprovidedforbylawshallbeorderedtoremedythesituationandshallbefinedatleastRMB10，000andnomorethanRMB100，000.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Whereassetsofthecompanyareheldinanaccountopenedinthenameofanindividual，illegalincomeshallbeconfiscatedandthereshallbefineofatleastthesameamountandlessthanfivetimestheamountoftheillegalincome.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article212Ifacompanyfurnishestoshareholdersorthegeneralpublicfinancialstatementswhicharefalseorwhichconcealimportantfacts，thepersonnelinchargeofthematterwhohavedirectresponsibilityandotherpersonnelwithdirectresponsibilityshallbefinedatleastRMB10，000andnomorethanRMB100，000.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article213IfinviolationofthisLaw，stateassetsareconvertedintosharesorsoldatalowpriceorgiventoindividualswithoutcompensation，thepersonnelinchargeofthematterwhohavedirectresponsibilityandotherpersonnelwithdirectresponsibilityaresubjecttoadministrativesanctionsinaccordancewiththelaw.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article214Ifadirector，supervisorormanagerexploitshispositiontoacceptbribesorotherillegalincomeortotakepropertyofthecompanywrongfully，theillegalincomeisconfiscated，heshallbeorderedtoreturnthecompany'spropertyandheissubjecttosanctionsbythecompany.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.Ifadirectorormanagermisappropriatescompanyfundsortakescompanyfundsandlendsthemtoanother，heshallbeorderedtoreturnthefundstothecompany，issubjecttosanctionsbythecompany，andturnsovertothecompanyallincomeobtained.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
WhenadirectorormanagerinviolationofthisLawusesthecompany'sassetstoprovideaguaranteeforthedebtsofitsshareholdersorotherindividuals，heisorderedtocanceltheguarantee，isresponsibleaccordingtolawforprovidingcompensation，andturnsovertothecompanyallincomederivedfromtheillegalprovisionoftheguarantee.Ifthecircumstancesareserious，heshallbesubjecttosanctionsbythecompany.

Article215IfadirectorormanagerinviolationofthisLawoperatesforhimselforonbehalfofanotherabusinessinthesamelineofbusinessasthecompanyinwhichheholdsaposition，inadditiontoturningoverallincomeobtained，heshallbesubjecttosanctionsbythecompany.
Article216IfacompanydoesnotmakeallocationstoitsstatutorycommonreservefundoritsstatutorycommonwelfarefundinaccordancewiththisLaw，thecompanyshallbeorderedtomakeuptheexactamountwhichshouldhavebeenallocatedandshallbesubjecttoafineofatleastRMB10，000andnomorethanRMB100，000.
Article217Intheeventofamerger，division，reductionofregisteredcapitalorliquidation，ifthecompanydoesnotsendnoticetoorpublishpublicnoticesforitscreditorsinaccordancewiththeprovisionsofthisLaw，thecompanyshallbeorderedtoremedythesituationandshallbesubjecttoafineofatleastRMB10，000andnomorethanRMB100，000.
Ifatthetimeofliquidation，acompanyconcealsitsproperty，makesfalseentriesonitsbalancesheetoritsinventoryofproperty，ordistributesthecompany'spropertybeforerepayingitsdebts，thecompanyshallbeorderedtoremedythesituationandshallbesubjecttoafineofatleastonepercentandnomorethanfivepercentoftheassetsconcealedorthedebtsnotrepaidbeforedistribution.ThepersonnelinchargeofthematterwhohavedirectresponsibilityandtheotherpersonnelwithdirectresponsibilityshallbesubjecttoafineofatleastRMB10，000andnomorethanRMB100，000.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article218IfaliquidationgroupdoesnotfilealiquidationreportwiththecompanyregistrationauthorityinaccordancewiththeprovisionsofthisLaw，ortheliquidationreportconcealsimportantfactsorcontainssignificantomissions，thewrongsshallbeorderedtoberemedied.
Ifamemberoftheliquidationgroupexploitshispositionforcorruptorimproperends，obtainsillegalincomeorwrongfullytakesoverassetsbelongingtothecompany，heshallbeorderedtoreturnthecompany'sproperty，theillegallyobtainedincomeshallbeconfiscated，andheshallbefinedatleasttheamountofandnomorethanfivetimestheamountoftheincomeillegallyobtained.Iftheviolationconstitutesacriminaloffence，criminalliabilityshallbeinvestigatedinaccordancewiththelaw.
Article219Ifaninstitutionresponsibleforassessing，verifying，orexaminingandcertifyingassetsprovidesfalsedocumentation，itsunlawfulincomeisconfiscatedanditissubjecttoafineofatleasttheamountofandnomorethanfivetimestheamountoftheunlawfulincome.Theinstitutionshallalsobeorderedtoceasedoingbusiness，andthecertificationofthequalificationsof

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