Skip to main content

China Company Registration: China Company's Articles of Association

By
Significance of China Company's Articles of Association



China company registry and formation must follow PRC’s Corporation Law.

The 11th article of the corporation law stipulates that the establishment of a company must formulate its Articles of Association in accordance with the law. The articles of association shall be binding on the shareholders, directors, supervisors and senior managers of the company.

This stipulates the validity of the articles of association. It can be seen that the Articles of Association has great significance in the whole operation of the company.

Distinguish Articles of Association from Shareholders Agreement

Company's Articles of Association, to some extent, can be seen as one form of Shareholders Agreement since its publish requires a resolution through the shareholders meeting or the general meeting of shareholders.

The essential difference between Articles of Association and Shareholders Agreement is the modification.

Shareholders Agreement is the contract. If the contract needs to be amended, the parties to the contract must agree that the contract can be modified, otherwise it cannot be amended. But as a kind of organizational structure setting, the modification of Articles of Association just need two-thirds or more of the voting rights. In this sense, the revision of Articles of Association is more relaxed than the modification of Shareholders Agreement, which is the most essential difference between them.

Main Contents Specified in China Company's Articles of Association

First, China company’s business scope

According to article 12 of the Corporation Law, the company's business scope should be prescribed by Articles of Association and registered according to law.

And the business scope of the company is the necessary record of the company's Articles of Association, and it is also a matter that the Articles of Association of the company can be freely agreed upon. In the business scope of the company, as long as it does not involve the contents of franchising, the company may, in principle, engage in any business.

Second, legal liabilities of China company’s legal representative

In accordance with article 13 of the Corporation Law, the articles of association of the company may be free to agree on whether the chairman or the executive director or even the general manager be the legal representative of the company.

Third, the time and frequency of regular meetings of the shareholders' meeting.

Fourth, China company’s chairman, vice-chairmen, the board of directors, the executive director, manager, supervisor or board of supervisors

Fifth, Articles of association stipulates capital contribution of shareholders

Labels:

Comments

Post a Comment

Popular posts from this blog

China Trading Company

By
As world factory, “made-in-China” enjoys a worldwide popularity. with a trading company, you will enjoy a legitimate status to sign business contract under the protection of Chinese law, have the legal right to employ staffs and buy social insurances especially for Chinese employees who want to buy an property later in China. Set Up Your Own Foreign Trading Company in China As world factory, “made-in-China” enjoys a worldwide popularity. You may be thinking about setting up your own trading company after seeing all the opportunities or starts from China mainland when you handling business under individual way for some time. Any benefits or risks if you want to set up a trading company? Setting up a foreign trading company in China, you will enjoy a legitimate status to sign business contracts under the protection of Chinese law, have the legal right to employ staffs and buy social insurances especially for Chinese employees who want to buy a property later in China. ...
Post a Comment
Read more

How to Clean the Mirror Aluminum Composite Panel

By
Let's introduce the correct cleaning method of  mirror aluminum composite panel , because the mirror aluminum has the characteristics of corrosion resistance, it is very easy to clean. 1. we can use a lot of water to directly wash the surface of the mirror aluminum plate. 2.After washing off the dirt of the surface, use the detergent to wash the most dirty place. 3. Use a lot of clear water to wash off the detergent of the surface. After cleaning, the mirror aluminum product can have a new look. Although the cleaning method of mirror aluminum plate is simple, there are two problems needing attention: 1.Do not wash it when the temperature of the surface of the mirror aluminum board is too high, and the temperature limit should be about 40 degrees Celsius. 2.Choose the mild detergent, and don’t use the strong alkaline detergent such as sodium hydroxide or potassium hydroxide. The surface of mirror face aluminum plate is smoother, more beautiful, so once scratched, the beaut...
Post a Comment
Read more

Overview of Hong Kong Company

By
Here's information about  Hong Kong Company ,  and you're welcome to contatct us if you have any doubts. EMAIL proposal@set-up-company.com TELEPHONE +86-020-2917 9715 Hong Kong is a highly developed international metropolis and the freest trade and commerce port in the world. As an international finance center, HK plays a crucial role in global economic activity. Hong Kong has countless advantages such as superior business environment, circulating fund information, open market, free and orderly, a collection of professionals from all over the world, with perfect infrastructure, independent of the rule of law system, as well as the low tax rate. Coupled with good infrastructure and a sound legal system itself, for entrepreneurs and businessmen to provide a unique business environment. Therefore, more and more businessmen establish and develop their own companies with various purposes in Hong Kong, which can not only improve the company image, but also can enhance t...
Post a Comment
Read more