Notice of the State Science and Technology Commission and the State Administration for Industry and Commerce on Printing and Distributing the Provisions on Several Issues Concerning Holding Shares wit

Notice of the State Science and Technology Commission and the State Administration for Industry and Commerce on Printing and Distributing the Provisions on Several Issues Concerning Holding Shares with High-tech Achievements Article 1 These Provisions are formulated in accordance with the Company Law and other laws and regulations in order to standardize the share-holding behavior of high-tech achievements and promote the development of high-tech industries. Article 2 These Provisions shall apply to the contribution of high-tech achievements to limited liability companies. Article 3 The total investment in high-tech achievements may exceed 20% of the registered capital of the company, but shall not exceed 35%. Article 4 The shares of high-tech achievements shall meet the following conditions:

(1) It belongs to the high-tech scope promulgated by the State Science and Technology Commission;

(2) It is the core technology of the company's main products;

(3) Investors of technological achievements shall enjoy the right to dispose of the technology according to law by investing in shares, and guarantee that the company property rights of the technology can be used against any third party;

(four) has passed the appraisal of the State Science and Technology Commission or the provincial science and technology management department. Article 5 The administrative department of science and technology shall identify high and new technologies within the following scope:

(1) Microelectronics Science and Electronic Information Technology;

(2) Space science and space technology;

(3) Optoelectronic Science and Optoelectronic Integration Technology;

(4) Life science and bioengineering technology;

(5) Material science and new material technology;

(6) Energy science and new energy and energy-saving technologies;

(seven) ecological science and environmental protection technology;

(8) Earth science and ocean engineering technology;

(9) Basic materials science and radiation technology;

(10) medical science and biomedical engineering;

(eleven) other new processes and technologies applied on the basis of traditional industries.

This high-tech scope will be supplemented and revised by the State Science and Technology Commission according to the continuous development of high-tech at home and abroad. Article 6 Where a high-tech achievement is used as a share, the investor of the achievement shall agree with other investors on the scope of use of the achievement, the scope of rights enjoyed by the investor of the achievement for the technology and the liability for breach of contract. Article 7 Where shares are acquired with high-tech achievements, the evaluation and pricing shall be conducted by an evaluation institution registered in the administrative department for industry and commerce. If the evaluation results of state-owned assets need to be confirmed by the relevant administrative departments according to law, confirmation procedures shall also be handled. Where the assessed amount exceeds 20% of the registered capital of the company, the following documents shall be submitted and confirmed by the administrative department of science and technology at or above the provincial level:

(1) Application for investment in technological achievements: explain the right status of technological achievements, the transfer of the right to use and its implementation effect;

(2) Documents certifying that the investor enjoys the rights to the achievements, including patent certificate, software registration certificate, new plant variety registration certificate, patent transfer contract, technology contract and other relevant legal documents;

(3) Technology investment agreement, and the production plan approved or implemented by the company;

(four) the evaluation report and confirmation of the value of technological achievements;

(five) other documents required by the administrative department of science and technology. Article 8 After examination and confirmation by the administrative department of science and technology, the shareholders of the company shall reach an agreement on the price of high-tech achievements, and write the technical achievements and the corresponding capital contribution into the articles of association. Article 9 The shareholders of a company shall, in accordance with the provisions of the state on the establishment or change of registration of limited liability companies, go to the administrative department for industry and commerce to register the establishment or change of the company with the examination and confirmation documents and other documents issued by the administrative department for science and technology at or above the provincial level. Article 10 After the establishment of the company, the investor of high-tech achievements shall go through the formalities for the transfer of rights of high-tech achievements according to the investment agreement, provide technical materials, and assist in the application and implementation of high-tech achievements. Those who violate the agreement, fail to fulfill the obligation of delivering high-tech achievements, or use the achievements beyond the scope of the rights of technological achievements agreed in the agreement shall bear the liability for breach of contract to other investors. Article 11 The appraisers, relevant examiners and registrars who have invested in high-tech achievements shall keep the technical secrets and business secrets for investors. Article 12 These Provisions shall apply to Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures in which Chinese and foreign parties invest or provide cooperation conditions with high-tech achievements; High-tech achievements should be funded in one lump sum according to the investment period. Article 13 Where a non-corporate science and technology development-oriented enterprise with legal person status contributes shares with high-tech achievements, it shall be implemented with reference to these Provisions. Article 14 The State Science and Technology Commission and the State Administration for Industry and Commerce shall be responsible for the interpretation of these Provisions. Fifteenth the provisions shall come into force as of the date of issuance.