When the joint venture terminates, the board of directors shall propose the liquidation procedures and principles and the candidates for the liquidation committee, and report them to the competent department of the enterprise for examination and supervision.
The members of the liquidation committee shall be elected among the directors of the joint venture company. When the directors are unable or unfit to serve as members of the liquidation committee, the joint venture may employ an accountant or lawyer registered in China. When the examination and approval authority deems it necessary, it may send people to supervise.
The task of the liquidation committee is to conduct a comprehensive inventory of the property, creditor's rights and debts of the joint venture, prepare the balance sheet and property catalogue, put forward the basis for property pricing and calculation, formulate the liquidation plan, and implement it after it is submitted to the board meeting for approval. During the liquidation period, the liquidation committee shall sue and respond to the lawsuit on behalf of the joint venture. After the liquidation of the joint venture, the liquidation committee shall submit a liquidation report to the board meeting of the original examination and approval authority for approval, and go through the formalities of cancellation of registration with the original registration authority and hand in the business license.
After the termination of the joint venture company, all account books and documents shall be kept by the original China joint venture company.