Guiding Opinions of the China Banking Regulatory Commission and the People's Bank of China on the Pilot Operation of Small-sum Loan Companies
Guiding Opinions of the China Banking Regulatory Commission and the People's Bank of China on the Pilot Operation of Small-sum Loan Companies
Guiding Opinions of the China Banking Regulatory Commission and the People's Bank of China on the Pilot Operation of Small-sum Loan Companies
Yin Jian Fa [2008] No.23
May 4, 2008
To various banking regulatory bureaus, Shanghai Headquarters, all branches and business management departments of the People's Bank of China, and central sub-branches of the People's Bank of China in provincial capital cities and sub-provincial cities,
In order to carry out the scientific outlook of development in an all-round way, effectively allocate financial resources, guide the flow of capital to rural and underdeveloped areas, improve the financial services in rural areas, promote the development of agriculture, farmers and rural economy, and support the construction of socialist new countryside, we hereby put forward the guidance on issues concerning the pilot operation of small-sum loan companies as follows:
I. Nature of Small-sum Loan Companies
Small-sum loan companies are limited liability companies or joint stock companies established with the capital contribution from natural persons, legal persons and other organizations, which do not accept public deposits and engage themselves in small-sum loan businesses.
A small-sum loan company is a corporate legal person, which has independent legal person property, enjoys the property right of the legal person and undertakes civil liability for its debts to the extent of its entire assets. Shareholders of a small-sum loan company shall be entitled to enjoy the capital proceeds, participate in making important decisions, and select managers and enjoy other rights. The shareholders are liable to the company to the extent of the capital contributions they have paid or the shares they have subscribed for respectively.
Small-sum loan companies shall carry out the state banking policies and principles, conduct business within the scope set forth by laws and regulations. They shall run business independently, assume sole responsibility for their profits or losses, be self-disciplined and bear all risks by themselves. Their lawful business activities shall be protected by law and shall not be interfered with by any unit or individual.
II. Establishment of Small-sum Loan Companies
Name of a small-sum loan company shall be composed of the administrative division, brand name, industry involved and organization form in sequence, among which the administrative division means the name of the administrative division at the county level, and the organization form shall be a limited liability company or a joint-stock company.
The number of shareholders of a small-sum loan company shall accord with the quorum. A limited liability company shall be jointly invested in and incorporated by no more than fifty shareholders. To establish a joint stock limited company, there shall be no less than 2 but no more than 200 initiators, of whom half or more shall have a domicile within the territory of China.
The source of registered capital of small-sum loan companies shall be genuine and lawful, all of which shall be composed of paid-up capital contributions, the amount of which shall be fully paid by the investors or initiators at a lump sum.
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