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The organizational form and registered capital of the joint venture company;
1. This joint venture is a limited liability company. The liability of each party to the joint venture shall be limited to the amount of capital contribution subscribed by each party.
2. The total investment of a joint venture (including enterprise loans) refers to the sum of capital construction funds and production working capital that need to be invested according to the production scale stipulated in the joint venture contract and articles of association.
3. The registered capital of a joint venture refers to the total capital registered with the registration authority for the establishment of the joint venture, and the sum of the capital contributions subscribed by the parties to the joint venture. The registered capital of a joint venture shall generally be expressed in RMB or in foreign currency agreed upon by the parties to the joint venture.
4. During the joint venture, the joint venture shall not reduce its registered capital. If it is really necessary to reduce the total investment and the scale of production and operation due to changes, it must be approved by the examination and approval authority.
5. If a party to a joint venture transfers all or part of its equity to a third party, it must obtain the consent of the other party to the joint venture, report it to the examination and approval authority for approval, and go through the formalities of change registration with the registration authority. When one party to a joint venture transfers all or part of its equity, the other party to the joint venture has the preemptive right, and the conditions for one party to transfer its equity to a third party shall not be superior to those for the other party to the joint venture. In violation of the above provisions, its transfer is invalid.
6. The increase or decrease of the registered capital of a joint venture shall be approved by the board meeting, submitted to the examination and approval authority for approval, and the change registration formalities shall be handled with the registration authority.