Question

to China's Company law, who of the following persons could be ointment as a director, supervisor or senior manager of a company? who has been convicted crime of corruption ical disabled person who has full civil capacity A Fomer director of a company which has been declared bankrupt where he was personally responsible for the bankruptoy D.A person who has significant unpaid debts. , Which of the following FIE forms is not a legal person? A. CJV C. Branch office B.EJV D.1НС 9. According to China's company law, a company may not purchase its own shares in which of the following circumstances A. to reduce the registered capital B. to merge with another company that holds its shares C. to reward the staff of the company with shares D. to escape some tax Page 2 7 pages in total

Answer 1

7. According to company law of china, no person shall be appointed as a supervisor, senior manager or director of a company i) if s/he has no civil capacity or limited civil capacity to perform the duties

ii) If s/he has been convicted by court in corruption case

iii) If s/he has served as a director, supervisor or senior manager of a company that has been declared bankrupt by the court

iv) If s/he has worked as a legal representative of a company and business license of that person has been revoked for non-compliance of law

v) if s/he holds a large amount of outstanding debts and unable to repay the debt amount

Therefore, the correct answer is

B. A physically disabled person who has full civil capacity

8. CJV or cooperative joint venture is the joint venture project initiated by two or more persons. The CJV is incorporated as a joint venture company as per the company law of a country.

EJV or equity joint venture is the equity partnership between two or more individuals to run a company. It is also registered as a joint venture company as per the company law of a country.

IHC or international holding company is set up by a foreign company and it acts as 100% subsidiary of the parent company.

Branch office is the small divisions of a corporation or company at various locations and it executes some or all of the business operations of the parent company. However branch office is not registered as a separate company as per the company law

Therefore, the correct answer is

C. Branch Office

9. Article 142 of China's company law allows a company to buyback its own shares in the following circumstances:

i) to reduce its registered capital

ii) To merge with another company that holds its shares

iii) to reward its workers and managers with shares

Therefore, the correct option is

D. to escape some tax