Can civil servants use patents to invest in companies and enjoy profit dividends?

Civil servants cannot enjoy profit dividends by using patents to invest in companies. According to relevant laws, civil servants are not allowed to hold shares in unlisted companies, including holding shares in various forms. If a patent is used to buy shares in a company, it is also a shareholding in an unlisted company, but the assets invested in the shares are intangible assets. Patent shares must also be evaluated, and the evaluated value is used as the distribution standard for dividends.

Legal Analysis

Civil servants are public officials in various countries who are responsible for the overall management of economic and social order and national public resources, and the maintenance of national laws and regulations and the implementation of relevant obligations. In China, it refers to staff who perform public duties in accordance with the law, are included in the national administrative establishment, and whose wages and benefits are borne by the national finance. Civil servant positions are divided into comprehensive management, professional and technical, and administrative law enforcement categories based on the nature, characteristics and management needs of the position. Civil servants are persons who engage in official activities in accordance with the law. They do not work for themselves, nor do they work or serve a private enterprise or organization. The participation of political party organs and their staff in the decision-making and implementation of national political, economic and social affairs in different ways is an act of performing public duties. In accordance with relevant laws and regulations, civil servants are prohibited from using their authority and positional influence to seek benefits for their relatives and staff around them. They are not allowed to engage in or participate in for-profit activities or hold concurrent positions in enterprises or other for-profit organizations. Civil servants who engage in or participate in for-profit activities or hold concurrent positions in enterprises or for-profit organizations shall be given a demerit or a major demerit. If the circumstances are serious, they shall be demoted or dismissed. If the circumstances are serious, they shall be dismissed.

Legal Basis

Regulations on Punishment of Civil Servants of Administrative Agencies

Article 27: Engaging in or participating in for-profit activities in enterprises or other for-profit organizations Those who hold concurrent positions will be given a demerit or a major demerit; if the circumstances are serious, they will be demoted or dismissed; if the circumstances are serious, they will be dismissed.

Article 53: Property obtained by civil servants of administrative organs in violation of laws and disciplines and property used for violations of laws and disciplines, unless they should be confiscated, recovered or ordered to be refunded by other agencies in accordance with the law, shall be confiscated, recovered or ordered to be refunded by the agency that decides on the punishment. Ordered to refund compensation. If the property obtained in violation of laws and disciplines should be returned to the original owner or holder, it shall be returned to the original owner or holder; if it is state property and should not be returned or cannot be returned to the original owner or holder, it shall be turned over to the state treasury.