mited.
If the meeting of shareholders or board of
directors has distributed the profits before the losses are made
up for and the statutory common reserve funds and public
welfare funds are drawn in violation of the provisions of the
preceding paragraph, the profits distributed must be returned to the
company.
Article 178 In accordance with this law, the premium obtained by
a
joint stock company limited by issuing shares at a
price exceeding par value, and any other income designated
for the capital deserve funds by the regulations of the
responsible financial department of the State Council shall be
allocated to the company's capital common reverse fund.
Article 179 The company's common reserve funds shall be used to
make
up for the losses of the company, expand its production
and operations or as additional capital of the company.
When a joint stock company limited converts its common
reserve funds into capital upon the resolution of shareholder's
meeting, it shall either distribute new shares in proportion to
the number of shares held by sharesholders or increase the par
value of the shares, provided, however, that when the statutory
common reserve funds are converted to capital, the balance of
the common reserve fund may not fall below 25 percent of the
registered capital.
Article 180 The statutory common welfare fund of a company is
used
for the collective welfare of the company's staff and workers.
Article 181 A company may not keep accounting books and
records other than those provided for by law.
The assets of a company shall not be deposited in accounts opened
in the name of any individual person.
CHAPTER SEVEN MERGE AND DIVISION OF A COMPANY
Article 182 The merger or division of a company is subject to
a
resolution passed by the meeting of shareholders of the company.
Article 183 The merger or division of a joint stock
company limited must have the approval of the department
authorized by the State Council or by the people's government
at the provincial
level.
Article 184 Merger of a company may be made by means
of
absorption or creation.
Merger by absorption is a company absorbs one or
more other companies with the companies being absorbed
dissolved. Merger by creation is the unification of two
or more companies by dissolution of existing ones and
creation of a single new company.
When merger, a merger agreement shall be signed among
the parties concerned and the balance sheets and list of
assets of the companies concerned shall be compiled. The
companies concerned shall notify their creditors with上一页 [1] [2] [3] [4] [5] [6] 下一页
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