Comments to SAMR on Ensuring Effective Law-based Administration of Registration of Foreign-invested Enterprises (Draft for Comment)

2019-11-15 | Beijing, Shanghai

As a normative guideline for the registration management of foreign-invested enterprises, the Draft for Comment stipulates other relevant provisions that apply for foreign investment but are not specified in the Regulations on the Administration of Registrations of Companies. The Draft for Comment further stipulated that any foreign-funded corporate, after the implementation of the Foreign Investment Law, that applies for adjustment of matters which are inconsistent with the mandatory provisions in the Company Law, such as the adjustment of the highest authority, the term of office of the directors, the voting mechanism for major issues, and the distribution of profits, etc., should apply to the registration authority for the registration of changes or the recordation of articles of association and senior management. 

The EUCCC expects the introduction of more specific regulations on the implementation of registration management, and also suggests to clarify the “shared scope” and “other registration matters” in Articles 10 and 12.