Reply Notice Concerning Investment And Liquidation Of Foreign Enterprises And Solutions For General Application Problems

The office of Ministry of Commerce has recently distributed the reply notice concerning foreign investment and settlement of general application problem from the State Ministry. The notice regulated:

1. China and foreign joint venture can carry out investment no matter the capital is personal loan, personal earnings or is raised by other methods. These are all counted as cash and joint venture investors can invest according to rules written on venture agreement.

2. In case of joint venture, if one side does not execute her investment responsibility despite another side's one-month ultimatum, she can apply for dismissal of joint venture from the authority or can find another investor to replace the existing one. The authority judges according to the judgments of the Court or related attributors.

3. Foreign investors who establish foreign invested enterprises through acquisitions of assets and shares of Chinese enterprises are not allowed to get whole decision power before they pay off all the outstanding acquisitions.

4. Liquidation report should be submitted within 180 days from the date of liquidation. If there are special cases that need to extend the liquidation deadline, the Committee of Liquidation will apply for an extension from the authority before 15 days from the deadline. The extended period shall not be over 90 days. Otherwise, the authority will treat the case according to related regulations stated in "The Rules and Regulations for Liquidation of Foreign Invested Enterprise".

5. During the liquidation process, companies are not allowed to start any new business activity even the activity will not reduce companies' assets.

商務部辦公廳近日轉發國務院法制辦公室對於外商投資企業投資者出資及清算具體應用問題的復函的通知。通知規定：

一、中外合資經營企業中合營者無論是以自己名義貸款，或是盈利、其他方式所得籌集的資金，均屬於合營者自己所有的現金，可按照合營合同的規定向合營企業認繳出資。

二、中外合資經營企業中合營一方未履行合營合同中規定的出資義務，守約方在一個月內催告後，違約方仍未履行出資義務的，可向原審批機關申請解散合營企業或者申請批准另找合營者承擔違約方在合營合同中的權利和義務。原審批機關應當根據法院或者相關仲裁機構的生效裁決出具審批意見。

三、通過收購國內企業資產或股份設立外商投資企業的外國投資者，或中外合資經營企業中控股的投資者，在未付清全部購買金額之前，不能取得企業的所有決策權。

四、企業清算自開始之日起應在180天內向企業審批機關提交清算報告，因特殊情況需要延長清算期限的，由清算委員會在距清算期限屆滿的15日前，向企業審批機關提出延長清算期限的申請。延長的期限不得超過90日。否則原審批機關應當依照《外商投資企業清算辦法》相關規定予以處理。 　

五、企業在清算期間，不論是否以不減少企業財產為原則，均不得開展任何新的經營活動。