Official Reply of the State Administration of Industry and Commerce on the Issue of Whether Chinese Shareholders Who Falsify Capital Contributions to or Withdraw Capital Contributions from Foreign-funded Enterprises May Be Punished by Industry and Commerce Administrative Bureaus at the County Level
Official Reply of the State Administration of Industry and Commerce on the Issue of Whether Chinese Shareholders Who Falsify Capital Contributions to or Withdraw Capital Contributions from Foreign-funded Enterprises May Be Punished by Industry and Commerce Administrative Bureaus at the County Level
Official Reply of the State Administration of Industry and Commerce on the Issue of Whether Chinese Shareholders Who Falsify Capital Contributions to or Withdraw Capital Contributions from Foreign-funded Enterprises May Be Punished by Industry and Commerce Administrative Bureaus at the County Level
Gong Shang Wai Qi Zi [2002] No. 71
March 29, 2002
To the Shandong Administration of Industry and Commerce:
Your Administration's Request for Instructions on Whether Chinese Shareholders Who Falsify Capital Contributions to or Withdraw Capital Contributions from Foreign-funded Enterprises May Be Punished by Industry and Commerce Administrative Bureaus at the County Level (Lu Gong Shang Wai Qi Zi [2002] No. 29) has been received. Having researched this issue, we hereby make the following reply:
Article 1 According to Articles 208 and 209 of the Company Law and Articles 60 and 61 of the Administrative Regulations of the People's Republic of China on Company Registration, any promoter or shareholder who falsifies a capital contribution to or withdraws a capital contribution from a company shall be subject to an administrative penalty imposed by the company registration agency.
In the course of cases such as those described above, if the company registration agency becomes aware that the company has registered false capital contributions, submitted false certificates or registered the company by any other fraudulent means, the company registration agency shall impose an administrative penalty on the company in accordance with Article 206 of the Company Law and Articles 58 and 59 of the Administrative Regulations of the People's Republic of China on Company Registration.
Article 2 Where a promoter or shareholder falsifies a capital contribution to or withdraws a capital contribution from a company, the company registration agency shall order the promoter or shareholder to take remedial action and supplement the company's registered capital.
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