Is it legally feasible to invest tens of millions of shares in domain names?

Recently, a company in Shanghai invested in a domain name, and its registered capital was valued at over100000 yuan, accounting for 70% of the company's equity, becoming the first enterprise in Shanghai to invest in a domain name. Although it is not uncommon to use its network domain name as the company's share capital contribution, as part of the intellectual property contribution has been affirmed in the Company Law of 1994, what attracts people's attention in this case is that the evaluation price of its website domain name is as high as 10000 yuan, and the intellectual property contribution ratio of the company after capital increase accounts for 69.8% of the company's registered capital, which is close to 70%. Even in Shanghai, the most economically developed city in China, there is no precedent. Today, this article will discuss the relevant provisions of China law on intellectual property investment and network domain name share. First,? 0? 2? 0? 2? 0? 2 Relevant provisions on the mode of investment of intellectual property rights As an important intangible capital of modern scientific development society, it has been stipulated in the Company Law of 1994 that "shareholders can make capital contributions in cash or in kind, industrial property rights, non-patented technology and land use rights". However, the amount of capital contribution with industrial property rights and non-patented technology at a fixed price shall not exceed 20% of the registered capital of the company. In 2006, the Company Law slightly revised this article: "Shareholders can make capital contributions in cash, or they can make capital contributions in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and transferred according to law; However, except for property that cannot be used as capital contribution according to laws and administrative regulations. " However, the non-monetary contribution shall not be less than 30% of the registered capital of the company. The Measures for the Registration of Intellectual Property Investment Shares issued by Shanghai Administration for Industry and Commerce (Shanghai Industrial and Commercial Note (2006) No.246) clearly stipulates that intellectual property rights are invested at a fixed price, and the highest proportion can reach 70% of the company's registered capital. The above provisions indicate: 1. According to the current Company Law, not all intellectual property rights can be used as capital contribution, only intellectual property rights that can be evaluated in money and transferred according to law can be used as capital contribution property. 2. The shareholders who contribute with intellectual property rights shall be the owners who have the right to legally transfer intellectual property rights, and the investors of intellectual property rights shall handle the property transfer according to law. If the transfer formalities are not completed, it shall be paid in full to the company, and shall be liable for breach of contract to the shareholders who have paid the capital contribution in full on time. 3. Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. 4. The highest proportion of intellectual property investment is 70% of the registered capital. Second,? 0? 2? 0? 2? 0? 2 Limited proportion of intellectual property investment In the above case, Changning Industrial and Commercial Branch approved its application for capital increase, and the registered capital increased to 6,543,806,600 yuan, of which 6,543,806,438 yuan was contributed by domain name rights, and the proportion of intellectual property investment actually reached 69.8%, almost 70%. In fact, as early as the Company Law of 1994, it was stipulated that the amount of intellectual property that can be used as capital contribution should not exceed 20% of the registered capital of the company. However, the revised Company Law in 2006 increased the proportion of non-monetary contributions by 3.5 times, indirectly stipulating that the amount of non-monetary contributions such as intellectual property rights can reach 70% of the registered capital of the company. Third,? 0? 2? 0? 2? 0? The equity of website domain name should be certain, but the nature of intellectual property itself, such as ownership, "overvaluation" or "depreciation" will affect the certainty of registered capital of the company. Under the above circumstances, the company's investment evaluation price exceeds 654.38+million, and the website domain name is very risky. First, the domain name of the website belongs to the root password. Therefore, if the root password is stolen or transferred by shareholders, the company will bear the risk of insufficient registered capital. In addition, the website domain name may be overvalued or devalued, resulting in the company's registered capital is not in place. According to the current company law, if the actual price of non-monetary property after the establishment of the company is obviously lower than the amount stipulated in the articles of association, the promoters of the capital contribution shall make up the difference; Other promoters shall bear joint and several liability. Therefore, how to make the easy transfer of domain name investment potentially harmful to social interests, mainly the legitimate rights and interests of corporate creditors, has become the next issue that the government department in charge of company registration should consider. About the author: Chen Danhong, assistant lawyer of Shanghai Dabang Law Firm, Master of Laws of the Chinese University of Hong Kong.