Legal analysis: The new company law stipulates that companies can invest in other enterprises. However, if a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors, shareholders' meeting or shareholders' meeting in accordance with the articles of association. The company's foreign investment is no longer limited by the investment quota, and the company can invest according to its own actual situation, regardless of the net assets. Expanded the investment target. 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. Make clear whether 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.
Legal basis: Article 15 of the Company Law of People's Republic of China (PRC) 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 The company's investment in other enterprises or providing guarantee for others shall be decided by the board of directors or shareholders' meeting in accordance with the provisions of the company's 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. Where a company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the shareholders' meeting. Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting shall be passed by more than half of the voting rights held by other shareholders present at the meeting.