外资企业章程 Model of Articles of Association

Abstract: The following is in fact the model of articles of association on enterprise with foreign capital, and it is also a reference for other forms of foreign-invested enterprise. there are versions in Chinese, English and Japanese.

(Note: If you are interested in this detail, please contact me or e-mail to sdhmyan@hotmail.com)

X公司章程
第一章 总则
第一条 根据《中华人民共和国外资企业法》及中国其他有关法律、法规，制定本章程。
第二条 投资者（股东）名称：X ,
在 X （地区）登记注册，法定地址： X 。
法定代表人姓名： X ，职务： X ，国籍： X 。
第三条 本公司名称 X 有限公司（以下简称公司）
公司法定代表人姓名：X ，
职务： X ，国籍：X 。
公司法定地址：X
第四条 本公司为有限责任公司，是投资者独资经营的企业，并以其认缴的出资额为限承担企业的责任。
第五条 公司是经X人民政府审批机构批准成立，并在X登记注册的外资企业，为中国法人，应当遵守中华人民共和国的法律、法规和有关条例规定，并受中国法律的管辖和保护。
第二章 宗旨和经营范围
第一条 公司宗旨：本着加强经济合作和技术交流的愿望，采用先进而实用的技术、生产设备和科学经营管理方法，生产高质量产品并发展新产品，获取满意的经营效益，同时促进中国国民经济的发展。
第二条 公司的经营范围：生产经营 X 。
第三条 公司年生产规模为年产 X 。
第四条 公司产品 X %外销；X %内销。
第五条 公司经营范围内需要的原材料、燃料等物资，可在国际市场购买，也可以在中国购买。
第三章 投资总额和注册资本
第一条 公司投资总额 X 万美元。公司注册资本： X 万美元。其中X 万美元用于引进国外设备，X 万美元用于购买国内设备，X 万美元用于购买国外设备，X 万美元用作流动资金。
公司的注册资本的出资方式为：X 万美元用货币出资，X 万美元用实物出资；出资期限为 X 年，首期出资在营业执照签发3个月内不得少于注册资本的15％。
第二条 公司缴付出资额后三十天内，应由中国注册会计师事务所验证并出具验资报告。验资报告应当报原审批机构和工商行政管理机构备案。
第三条 在经营期内，公司原则上不得减少注册资本数额。
第四条 公司转产、扩大经营范围、分立、合并、注册资本的增加、转让或者其他重要事项的变更，须经公司股东决定，报原审批机构批准，并在规定期限内向工商行政管理、税务、海关等有关部门办理相应的变更登记手续。
第四章 股东
第一条 公司股东依法行使职权。
第二条　公司股东行使下列职权：
（一） 决定公司的经营方针和投资计划；
（二） 选举和更换非由职工代表担任的董事、监事，决定有关董事、监事的报酬事项；
（三） 审议批准董事会的报告；
（四） 审议批准监事会或者监事的报告；
（五） 审议批准公司的年度财务预算方案、决算方案；
（六） 审议批准公司的利润分配方案和弥补亏损方案；
（七） 对公司增加或者减少注册资本作出决定；
（八） 对发行公司债券作出决定；
（九） 对公司合并、分立、变更公司形式、解散和清算等事项作出决定；
（十） 修改公司章程；
股东决定上述事项时应当采用书面形式，并由股东在决定文件上签字、盖章。
第五章 董事会
第一条 公司设立董事会。董事会由 X 名成员组成，其中董事长1人，副董事长X 人。董事长及董事由股东委派及撤换。董事和董事长每届任期3年。经继续委派可以连任。董事人选的更换，应书面通知董事会。
董事长是公司的法定代表人，是代表公司行使职权的签字人。董事长临时不能履行职责的，委托副董事长或其他董事代为履行，但应有书面委托。法律、法规规定必须由董事长行使的职责，不得委托他人代行。
第二条 董事会对股东负责，行使下列职权：
（一）向股东报告工作；
（二） 执行股东的决定；
（三） 决定公司的经营计划和投资方案；
（四） 制订公司的年度财务预算方案、决算方案；
（五） 制订公司的利润分配方案和弥补亏损方案；
（六） 制订公司增加或者减少注册资本以及发行公司债券的方案；
（七） 制订公司合并、分立、变更公司形式、解散的方案；
（八） 决定公司内部管理机构的设置；
（九） 决定聘任或者解聘公司经理及其报酬事项，并根据经理的提名决定聘任或者解聘公司副经理、财务负责人及其报酬事项；
（十） 制定公司的基本管理制度；
第三条 董事会会议由董事长召集和主持；董事长不能履行职务或者不履行职务的，由副董事长召集和主持；副董事长不能履行职务或者不履行职务的，由半数以上董事共同推举一名董事召集和主持。
第四条 董事会决议的表决，实行一人一票。
第五条 董事会会议每年至少召开一次。经三分之一董事提议，可由董事长召开董事会临时会议，董事会会议应有半数以上的董事出席方能举行。董事因故不能出席董事会会议的，可出具委托书委托他人出席和表决。
董事会会议一般应在公司法定地址所在地举行。
第六条 召开董事会会议应提前10天送达开会通知，并说明会议议程和地点。
第七条 董事会每次会议，须作详细的书面记录，并由全体出席董事签字（代理人出席的，由代理人签字）。记录文字使用中文。会议记录及决议文件，经与会代表签字后，由公司抄送全体董事，并连同会议期间收到的委托书一并存档，由董事会指定专人保管，在公司经营期限内任何人不得涂改或销毁。
董事会休会期间需经董事会决定的事宜，也可通过电讯及书面表决方式作出决议。按董事书面表决作出的决议，与董事会会议作出的决议具有同等效力。
第六章 经营管理机构
第一条 公司在其住所设立经营管理机构，负责公司的日常经营管理，并实行董事会领导下的总经理负责制，公司下设生产、技术、销售、财务、行政等部门。
第二条 公司设总经理X 人，副总经理X 人。副总经理协助总经理工作。总经理处理重要问题时，应同副总经理协商。
第三条 总经理对董事会负责，行使下列职权：
（1）负责执行董事会的各项决议；
（2）组织和领导公司的日常生产建设和经营管理；
（3）在股东及董事会授权范围内，对外代表公司处理公司日常筹建业务和生产经营业务，对内任免下属管理人员；
（4）行使董事会授予的其他职权。
第四条 总经理、副总经理每届任期X 年，经董事会聘请，可以连任。
第五条 经董事会聘请，董事长、副董事长、董事可兼任总经理、副总经理或其他高级职务。
第六条 总经理、副总经理必须是常驻公司住所的专职人员，不得参与其他经济组织对本公司的商业竞争行为。
第七条 公司所有工作人员如有营私舞弊或严重失职行为的，经股东决定、董事会决议或依公司的管理规章，可随时解聘；对造成公司经济损失或触犯刑律的，要追究经济责任或法律责任。
第八条 总经理、副总经理、总工程师、总会计师、审计师和其他高级职员请求辞职的，应提前30天向董事会提交书面报告，经董事会决议批准，方可离任。
第七章 监事
第一条 公司不设立监事会，设监事1名。董事、高级管理人员不得兼任监事。
第二条 监事的任期每届为三年。监事任期届满，连选可以连任。
第八章 财务会计
第一条 公司依照中国法律、财政部门的有关规定，结合公司的具体情况，制定公司的财务会计制度。
第二条 公司必须在企业所在地设置会计帐册，实行独立核算，按规定报送会计报表。
第三条 公司会计年度采用公历年制，自每年一月一日起至十二月三十一日止为一个会计年度。因特殊情况需改变会计年度起讫日期的，须经税务机关批准。
第四条 公司的一切凭证、帐簿和报表一律用中文书写。
第五条 公司采用国际通用的权责发生制和借贷记帐法记帐。
第六条 公司财务部门应在每一个会计年度头三个月内，编制上一会计年度资产负债表和损益计算书，经审计师审计签字后，报原审批机构和工商行政管理机构备案。
第七条 公司采用人民币为记帐本位币。对于现金、银行存款、其他款项以及债权债务、收益和费用等，应按实际收付的货币进行登记。
第八条 公司应在国家外汇管理机关同意的银行开立人民币及外币帐户。
第九条 公司从缴纳所得税后的利润中提取利润的百分之十列入法定公积金。法定公积金累计额为公司注册资本的百分之五十以上的，可不再提取。
第十条 公司依法缴纳所得税和提取各项基金后的利润，每年分配一次。
第十一条 公司上一年度亏损未弥补前，不得分配利润；上一会计年度未分配的利润，可与本会计年度可供分配的利润一并分配。
第十九条 公司获得的合法利润、其他的合法收益和清算后的资金，可依照外汇管理的有关规定自由汇出。
第十二条 公司的外籍职工和台、港、澳职工的工资和其他的合法收益，依法纳税后，减除在中国境内的开支，其剩余部分，可依照外汇管理的有关规定全部汇出。
第九章 税务、外汇管理及保险
第一条 公司依照中国有关法律和条例规定缴纳各种税务，并可按有关规定申请享受减、免税的优惠待遇。
第二条 公司职工按照《中华人民共和国个人所得税法》缴纳个人所得税。
第三条 公司的一切外汇事宜，按照《中华人民共和国外汇管理条例》和有关规定办理。
第四条 公司应自行解决外汇收支平衡。
第五条 公司的各项保险应向中国境内的保险公司投保。
第十章 职工及工会
第一条 公司根据生产、经营的需要，自行决定本企业的机构设置和人员编制。公司在劳动部门核准的招工计划内，自行公开招聘，经考核，择优录用所需的职工。
第二条 公司录用职工，企业和职工双方应当遵守《中华人民共和国劳动法》以及中国的其他有关法律、法规和区有关规定，并依法订立劳动合同。劳动合同订立后报劳动部门备案，并按有关规定办理用工手续。
第三条 公司有权对违反公司规章制度和劳动纪律的职工，给予警告、记过、降薪的处分，情节严重的可予以开除。对开除、处分的职工，须报劳动管理部门备案。
第四条 公司职工有权依照《中国人民共和国工会法》的规定，建立基层工会组织，开展工会活动。
第五条 工会是职工利益的代表，其基本任务是：依照中国法律、法规的规定维护职工的合法权益，协助公司安排和合理使用福利及奖励基金；协助调解职工与公司之间的纠纷；组织职工学习，开展文体活动；教育职工遵守劳动纪律，努力完成公司的各项经济任务。
公司研究决定有关职工奖惩、工资制度、生活福利、劳动保护和保险等有关职工切身利益的问题时，工会代表有权列席会议（无表决权），反映职工的意见和要求。
第六条 本企业工会可指导、帮助职工同公司签订个人劳动合同，或代表职工同公司签订集体劳动合同，并监督劳动合同的执行。
第七条 公司应为本企业工会提供必要的活动条件。公司每月按本企业职工实发工资总额的2%拨交工会费，由本企业工会按照中华全国总工会制定的有关工会经费管理的规定使用。
第十一章 期限、终止和清算
第一条 公司经营期限为 X 年，自外商投资企业营业执照签发之日起计算。
第二条 公司需要延长经营期限的，应在距期满180天前由公司向原审批机构提交书面申请，经批准后方可延长，并应向工商、税务、海关等有关部门办理变更登记手续。
第三条 公司有下列情形之一的，可以申请提前终止；
（1）经营不善，严重亏损，投资者决定解散；
（2）因自然灾害、战争等不可抗力而遭受严重损失，无法继续经营；
（3）公司章程规定的其他解散事由已经出现。
第四条 公司申请提前终止，需报原审批机构批准。
第五条 公司终止经营，应及时公告，依照中国有关法律、法规，组织清算委员会，按法定程序进行清算。在清算完结前，投资者不得将公司的资金汇出或携带出境，不得自行处理公司的财产。
第六条 清算结束后，由清算委员会提出清算结束报告，提交股东确认后，报原审批机构备案。并向工商行政管理、税务、海关等有关部门办理注销登记手续，缴销营业执照，同时对外公告。
第十二章 附则
第一条 公司接受政府主管部门、海关、工商行政管理、劳动管理、环保、财政、税务、审计等部门的依法查核和监督。
第二条 本章程的修改必须报原审批机构批准。
第三条 本章程用中文书写。
第四条 本章程如与中华人民共和国的法律和法规有抵触之处，以国家法律和法规为准。
第五条 本章程经审批机构批准后生效。
第六条 本章程于 X 年 X月X日由投资者法定代表在中国X签署。




投资者：（盖章）X
法定代表人签字：X
X 年 X 月X 日



Articles of Association

Article 1 General provisions
1.1 Preliminary
These Articles of Association are hereby formulated in accordance with the Law of the People’s Republic of China on Wholly Foreign-Owned Enterprise and its Implementing Rules and other relevant laws and regulations of the People’s Republic of China.
1.2. The investor
1.2.1 Name of the Investor: X
1.2.2 Residence of the Investor is X.
1.2.3 The legal representative of the Investor:
Name: X; Nationality: X; Position: X
1.3 The Company
1.3.1 The name of the Company is X.
1.3.2 Residence of the Company is X.
1.3.3 The legal representative of the Company:
Name: X; Nationality: X Position: X
1.4 Limited Liability
The Company shall be a limited liability company. The Liability of the Investor shall be limited to the amount of investment subscribed and contributed to the enterprise by the Investor.
1.5 Legal Personality
The Company shall constitute a legal person under the laws of China. All activities of the Company shall be governed by the laws of China and the rights and interests of the Company and of the investor shall be protected by such laws.

Article 2 Aim and scope of business operations
2.1 Aim
2.2 Scope of business operation
2.3 Scale of annual production
2.4 Sales Proportion of import and export
2.5 Purchase
The Company can purchase raw materials, fuels etc. from domestic or foreign markets.

Article 3 Total investment and registered capital
3.1 Total investment and registered capital
3.1.1 The total investment of the Company shall be X.
3.1.2 The registered capital of the Company shall be X.
3.1.3 Among the registered capital, X shall be used to purchase machinery and equipment from aboard; X shall be used to purchase machinery and equipment from domestic market; X shall be used for operational needs.
3.1.4 Methods of contributing investment: the Investor may use foreign currencies with amount to X, and use the machinery and equipment with amount to X.
The time limit: the Investor may make the investment contribution by installment. The last installment of the contribution shall be made with the period of X years from the day when the business license is issued. The first installment of investment contribution shall not be less than15% of the total amount of investment contribution that the Investor undertakes to make, and shall be made in full within a period of 90 days beginning from the day when the business license is issued.
3.2 Within 30 days after the contribution, the Company shall engage a Chinese registered accountant agency to carry out verification, and to prepare a report on verification of capital, which shall be submitted to the examining and approving organ and the administrative department for industry and commerce for the record.
3.3 The Company shall not reduce the registered capital during the term of business operation.
3.4 the transfer or extension of scope of business operation, the division or merge of the Company, and the significant changes in capital or other causes, shall be subject to the approval by the Investor and the approval of the original Authority and shall be registered with other departments.

Article 4 Shareholders
4.1 The shareholders execute his/her functions and powers in accordance with the laws.
4.2 The powers and functions of the shareholders shall include the following:
4.2.1 to decide on the Company's operational policies and investment plans;
4.2.2 to elect and replace directors and the supervisors who are representatives of the shareholders, and decide on matters relating to the remuneration of directors and supervisors;
4.2.3 to examine and approve reports of the board of directors;
4.2.4 to examine and approve reports of the board of supervisors or anysupervisor(s);
4.2.5 to examine and approve the Company's proposed annual financial budget and final accounts;
4.2.6 to examine and approve the Company's plans for profit distribution and recovery of losses;
4.2.7 to decide on increases in or reductions of the Company's registered capital;
4.2.8 to decide on the issue of bonds by the Company;
4.2.9 to decide on issue such as merger, division, change in corporate form or dissolution and liquidation of the Company; and4.2.10 to amend the Company's articles of association.Shareholders' meetings shall keep minutes of the decisions made on matters discussed. The minutes shall be signed by the shareholders present at the meeting.

Article 5 Board of directors
5.1 The Company has a board of directors with X members who are appointed and removed by the Investor. One is the board chairman, and there are X directors. Each director shall be appointed for a term of three years and may serve consecutive terms if reappointed by the Investor. If there are any changes of directors, a written notice shall be sent to the board of directors.
5.2 The chairman shall be the legal representative of the Company and shall exercise authority as such within the scope authorized by the board. Whenever the chairman is unable to perform his responsibilities, any other director may be authorized by the chairman to represent him. Every appointment of a proxy shall be in writing. The chairman shall not appoint a proxy to represent him on the matters prohibited by laws.
5.3 The board of directors is responsible to the Investor and exercises the following powers:
5.3.1 to be responsible for reporting to the Investor;
5.3.2 to implement the resolutions of the Investor;
5.3.3 to decide on the operational plans and investment plan of the Company;
5.3.4 to formulate the Company's proposed annual financial budget and final accounts;
5.3.5 to formulate plans for profit distribution and recovery of losses;
5.3.6 to formulate plans for increases in or reductions of the Company's registered capital and the issue of bonds by the Company;
5.3.7 to prepare plans for merger, division, change in corporate form and dissolution of the Company;
5.3.8 to decide on the set up of the Company's internal management structure;
5.3.9 to appoint or dismiss the Company's manager and pursuant to the manager's nominations to appoint or dismiss the deputy manager and the financial officers of the Company and decide upon their remuneration; and
5.3.10 to formulate the Company's basic management system.
5.4 Meetings of the board of directors are convened and presided over by the chairman. When the chairman is unable to perform his duties for a particular reason, the vice-chairman convenes and presides over the meetings. When the voce-chairman is also unable to perform, another director designated by over 1/2 of the board shall be convene and preside the meeting.
5.5 Each director shall have one vote in resolution of the board of directors.
5.6 The board of directors shall meet in person at least once each year. Special meetings shall be convened by the chairman at the request of 1/3 of the directors. A quorum of more than 1/2 of the directors must be present in person, or by their proxies.
Board meetings shall be held generally at the place of the Company’s residence.
5.7 When convening a meeting of the board of directors, notice of the meeting shall be given to all directors specifying agenda and place of the proposed meeting ten days before the meeting is convened.
5.8 The board of directors shall keep minutes of the decisions made on matters discussed. Such minutes shall be signed by the directors present at the meeting. The minutes are written in Chinese. After approval by the board, the minutes of each meeting shall be singed by the directors and filed in a minute book. A copy of minutes shall be provided to each of the directors as soon as practicable after each meeting. The board shall appoint a person for safekeeping. Any alternation or destroy of minutes are prohibited during the business operation.
If a board meeting shall not be convened during adjournment, matters shall be decided by electronic means or written votes, which is the same effect as resolutions by board meetings.

Article 6 Management organization
6.1 A management organization is established at the Company’s residence, responsible to daily operation management and shall act according to the instruction of the board of directors, including manufacturing, technology, sales, finance and executive departments etc.
6.2 The Company’s management organization shall have one general manager and X vice general managers. Vice general managers help the general manager to handle the work. General manager shall consult with the vice general managers when handling important issues.
6.3 The general manager shall be responsible to the board of directors and have the following powers and responsibilities.
6.3.1 to carry out the resolutions of the board of directors;
6.3.2 to take full charge of the daily operation and management of the Company;
6.3.3 to handle daily operations on behalf of the Company and appoint and dismiss the employees in accordance wit the powers delegated to him by the Investor and the board of directors.
6.3.4 to be responsible for other matters entrusted to the general manager by the board of directors.
6.3.5 The term of the general manager and vice general managers shall be X years or as otherwise determined by the board of directors and he may serve consecutive terms if reappointed by the board of directors.
6.3.6 Chairman, vice chairman or other directors may serve concurrently as general manager, vice general manager or other senior management personnel after appointment by the board of directors.
6.3.7 General manager and vice general managers are full time personnel who are prohibited to attend any competitions with other economic organizations.
6.3.8 If any personnel seek private interest or breach of duties that incur big losses to the Company, he shall be dismissed by the resolution of the Investor or the board of directors or in accordance with the regulations. He shall be responsible for economic losses or criminal punishment.
6.3.9 Senior management personnel, such as general manager, vice general manger, general engineer, general accountant, shall present written report to the board of directors 30 days before resignation. They leave only if approved by the board of directors.

Article 7 Supervisor
7.1 The Company shall not have a board of supervisors, and have one supervisor only. The directors and senior management personnel shall not act concurrently as supervisors.
7.2 The term of office of the supervisors is three years. At the end of a supervisor's term, the supervisor may serve another term, if reelected.

Article 8 Financial affairs and accounting
8.1 A company shall establish its financial and accounting systems according to laws, administrative regulations and the regulations of the responsible finance department of the State Council.
8.2 The Company shall set up books of account, execute independent business accounting, and present reports in accordance with regulations.
8.3 .The fiscal year of the Company shall begin from 1 January to 31 December of the same year of Gregorian calendar, except getting the approval from competent department for tax affairs.
8.4 Accounting vouchers, account books and accounting statements shall be prepared in Chinese.
8.5 The Company shall keep true and complete accounts and other related records which shall be prepared on an internationally accepted accrual basis and debit and credit accounting system.
8.6 the annual accounting statements and liquidation accounting statements, together with the verification report prepared by a registered accountant, shall be submitted, within the first three months of a fiscal year, to the competent departments for the examining and approving organ and the administrative department for industry and commerce for the record.
8.7 The Company shall adopt Renminbi as its bookkeeping base currency, bu t may use Renminbi or foreign currency books for its day to day business.
8.8 The Company shall open Renminbi and foreign currency accounts with banks in China approved by relevant Chinese regulatory authorities
8.9. When distributing each year's after-tax profits, the Company shall set aside ten per cent of its after-tax profits for the Company's statutory common reserve fund. When the aggregate balance in the statutory common reserve fund is fifty per cent or more of the registered capital of the Company, the Company need not make any further allocations to that fund.
8.10 Every year the Company may distribute the after-tax profits following allocations to funds pursuant to the relevant laws and regulations.
8.11 In the event that deficits of previous fiscal years of the Company have not been made up, it may not distribute the profits, while the undistributed profits of previous fiscal years may be distributed together with the distributable profits of the current fiscal year.
8.12 The amounts, such as the rightful profits and other earnings, and the capital after liquidation, may remitted freely out the China pursuant with the laws and regulations concerning foreign exchange control.
8.13 The wages and salaries as well as other rightful earnings in foreign exchange workers and staff members and those from Hong Kong, Macau and Taiwan working in the Company may be remitted freely out of the country after taxes have been paid in accordance with the provisions of the laws and regulations.

Article 9 Taxation, control of foreign exchange and insurance
9.1 The Company shall pay taxes and duties in accordance with the laws and regulations. The Company shall be entitled to apply for and obtain all preferential tax treatment, including reductions and exemptions, in accordance with the relevant laws and regulations.
9.2 The workers and staff members shall pay individual income tax in accordance with the provisions of laws and regulations.
9.3 Foreign exchange affairs shall be handled in accordance with laws and regulations concerning foreign exchange control.
9.4 The Company shall achieve by itself the balance of revenues and expenditures in foreign exchange.
9.5 With respect to the various categories of insurance for the Company, it shall take out insurance from insurance companies with the territory of China.

Article 10 Workers and staff members, trade union
10.1 The Company shall set up by itself the structure of departments and personnel. The Company shall have the right to recruit employees directly according the relevant laws and regulations on labor management.
10.2 The Company shall enter into employment contracts with employees. Employment contract shall be submitted to the local labor department for recording purposes as required by the relevant laws and regulations.
10.3 The Company may impose the sanctions of warnings, records of demerits, demotions and wage reduction and termination of employment if an employee violates the rules and regulations of the Company, which shall be reported to the local labor department for recording purposes.
10.4 The workers and staff members shall have the right to set up a grass-root trade union organization and carry out trade union activities in accordance with the provisions of the Trade union Law of PRC.
10.5 The trade union shall represent the interests of workers and staff members. The basic tasks shall as follows: to safeguard the lawful rights and interests of workers and staff members in accordance wit the provisions of laws and regulations, and to assist the Company in the rational arrangements and use of welfare and bonus funds for the workers and staff members; to intermediate the disputations among the employees and the Company; in carrying out cultural; artistic and sports activities; to educate workers and staff members in complying with labor discipline and in striving to fulfill various economic tasks of the Company.
When the Company holds discussions on problems concerning the commendation and punishment of workers and staff members, the wage system, welfare benefits, labor protection and labor insurance, representatives of the trade union shall have the right to attend the discussions as nonvoting attendants. The Company shall listen to the opinions of the trade union.
10.6 The trade union shall assist and guide Employees in the conclusion of employment contracts. A collective contract shall be concluded by the Trade union, on behalf of the employees. The trade unions shall monitor the performance of the employment contracts.
10.7 The Company shall give active support to the work of the trade union. Every month, the Company shall appropriate a sum equal to 2% of the actual total mount of wages and salaries of measures for the administration of trade union outlay, as formulated by the All-China federation of Trade Union.

Article 11 Term of operation, termination and liquidation
11.1 The term of the Company shall be X years, concerning from the date when its business license is issued.
11.2 The Company may apply to the original approval authority for an extension of the term of the Company no less than six months before the expiration of the term.
11.3 The Company shall be terminated under any of the following circumstances:
11.3.1 The Investor decides to liquidate the Company due to improper operation and heavy losses;
11.3.2 The company is unable to continue to operate due to heavy losses suffered as a result of force majeure such natural disasters and war, or
11.3.3 Other events which are grounds for dissolution has occurred;11.4 The Company shall summit an application for termination before the expiration of the term to the original approval authorities.
11.5 In case that the Company terminates business operations, the Company shall make a public announcement. The liquidation committee is established in accordance with the laws and regulations. Liquidation is carried out pursuant to the principles of liquidations. Prior to the conclusion of liquidation, the Investor shall not remit or carry the funds out of the territory of China, nor dispose of the Company’s property privately.
11.6 Upon the conclusion of liquidation, the liquidation committee summits the report to the Investor for verification before reporting to the original approval authority. It shall go through the procedures for the cancellation of registration with the administrative departments and make a public announcement.

Article 12 supplementary articles
12.1 The Company is supervised by administrative departments.
12.2 The Company summits an application for amendment of the articles of association to the original approval authorities.
12.3 The articles of association are written in Chinese.
12.4 In the event of any inconsistency between the articles of association and the laws and regulations of China, the laws and regulations shall prevail.
12.5 The articles of association shall become effective on the date they are approved by the approval authority.
12.6 The articles of association are hereby singed by the Investor’s authorized representative in X (place) on X (date).


The Investor:
Date: