What are the provisions of the new "Company Law" on the company's foreign investment?
Relevant provisions of the Company Law:
Article 15 A company may invest in other enterprises; However, unless otherwise provided by law, investors shall not be jointly and severally liable for the debts of the invested enterprises.
Article 16 Where a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors or the general meeting of shareholders in accordance with the articles of association; Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, it shall not exceed the prescribed limits.
It can be seen that the company law cancels the restrictions on the company's foreign investment. Article 15 stipulates that the company may invest in other enterprises; However, unless otherwise provided by law, investors shall not be jointly and severally liable for the debts of the invested enterprises. Article 16 stipulates that the company's investment in other enterprises shall be decided by the board of directors, shareholders' meeting or shareholders' meeting in accordance with the company's articles of association; Where the articles of association have limits on the total amount of investment and the amount of individual investment, they shall not exceed the prescribed limits.
First, the company's foreign investment is no longer limited by the investment quota. A company can invest according to its own actual situation and is not limited by its net assets. Second, the investment target has expanded. The company's foreign investment targets have also expanded from limited liability companies and joint stock limited companies stipulated in the old law to enterprises. Third, it is clear that the decision-making body for foreign investment is the shareholders' meeting or the board of directors. The company's foreign investment is a very important business activity and must abide by the rules. The new "Company Law" promotes capital contribution as a necessary clause in the articles of association. As long as investment is involved, regardless of the amount, it must be decided by the shareholders' meeting or the board of directors. As for the resolution procedure and effective conditions, it can be stipulated in the articles of association according to actual needs, or a resolution can be made separately. Fourth, shareholders can stipulate in the articles of association that different decision-making bodies exercise different decision-making powers. The limit of foreign investment can also be stipulated in the articles of association. Fifth, the limited liability of the company's foreign investment is clarified. The company only bears limited liability for the capital contribution of the invested enterprises. It is not allowed to become a joint and several liability person for the debt of the investment target enterprise through the arrangement of contracts and agreements.
To sum up, from the above, we can know that the provisions of the new company law on foreign investment are that the new company law cancels the restrictions on foreign investment of companies. The main purpose of this measure is to ensure that the company's investment is not restricted, so that the company can develop more rapidly, and at the same time, the company can grow bigger and bigger, ensuring that the company can develop better and better.