第一百六十七条：公司发行公司债券，必须在债券上载明公司名称、债券票面金额、利率、偿还期限等事项，并由董事长签名，公司盖章。

Article 167 In the case of company bonds issue, a company must state on each bond certificate the name of the company, the par value of the bond, interest rate, and repayment period, and the bond certificate shall be signed by the chairman of the board, and the company's chop shall be impressed thereon.

第一百六十八条：公司债券可分为记名债券和无记名债券。

Article 168 company bonds may be classified as either registered bonds or bearer bonds.

第一百六十九条：公司发行公司债券应当置备公司债券存根簿。

Article 169 If a company has issued bonds, it shall maintain a record of bondholders.

发行记名公司债券的，应当在公司债券存根簿上载明下列事项：

If registered bonds are issued, the following shall be recorded on the company's record of bondholders:

（一）债券持有人的姓名或者名称及住所；

(i) the name and domicile of each bondholder;

（二）债券持有人取得债券的日期及债券的编号；

(ii) the dates on which the bondholders acquired the bonds and the serial numbers of the bond certificates;

（三）债券总额，债券的票面金额，债券的利率，债券的还本付息的期限和方式；

(iii) the total value of the bonds, the par value of each bond, the interest thereon, the term thereof and method for payment of principal and interest;

（四）债券的发行日期。

(iv) the date of issue of the bonds.

发行无记名公司债券的，应当在公司债券存根簿上载明债券总额、利率、偿还期限和方式、发行日期及债券的编号。

If bearer company bonds are issued, the company's record of bondholders shall record the total value of such bonds, the interest rate thereon, the term thereof and the method for repayment, and the date of issue and the serial numbers of the bond certificates.

第一百七十条：公司债券可以转让。转让公司债券应当在依法设立的证券交易场所进行。

Article 170 Company bonds may be assigned. Assignment of company bonds shall be carried out at a lawfully established securities exchange.

公司债券的转让价格由转让人与受让人约定。

The assignment price of company bonds shall be agreed upon between the assignor and the assignee.

第一百七十一条：记名债券，由债券持有人以背书方式或者法律、行政法规规定的其他方式转让。

Article 171 Assignment of registered bonds is effected by the bondholder's endorsement of the bonds or by other methods prescribed by the relevant national statutes or administrative regulations.

记名债券的转让，由公司将受让人的姓名或者名称及住所记载于公司债券存根簿。

In the case of assignment of registered bonds, the company shall record the assignee's name and domicile on the record of bondholders.

无记名债券，由债券持有人在依法设立的证券交易场所将该债券交付给受让人后即发生转让的效力。

Assignment of bearer bonds takes effect upon delivery thereof by the bondholder to the assignee at a lawfully established securities exchange.

第一百七十二条：上市公司经股东大会决议可以发行可转换为股票的公司债券，并在公司债券募集办法中规定具体的转换办法。

Article 172 Upon adoption of a resolution by the shareholders' general committee, a listed company may issue bonds which are convertible to its shares, and it shall prescribe the specific method for such conversion in the plan for company bonds offer.

发行可转换为股票的公司债券，应当报请国务院证券管理部门批准。公司债券可转换为股票的，除具备发行公司债券的条件外，还应当符合股票发行的条件。

In order to issue convertible company bonds, an application shall be submitted to the securities regulatory authority under the State Council for approval. In order to issue convertible company bonds, in addition to meeting the requirements for issue of bonds, the company shall also meet the requirements for issue of shares.

发行可转换为股票的公司债券，应当在债券上标明可转换公司债券字样，并在公司债券存根簿上载明可转换公司债券的数额。

In the case of issue of convertible company bonds, the face of the bond certificate shall be marked with the word "Convertible," and the number of convertible company bonds shall be specified in the company's record of bondholders.

第一百七十三条：发行可转换为股票的公司债券的，公司应当按照其转换办法向债券持有人换发股票，但债券持有人对转换股票或者不转换股票有选择权。

Article 173 Where convertible company bonds are issued, the company shall exchange its shares for the bonds held by the bondholders using the prescribed method of conversion, provided that the bondholders have the option on whether or not to convert their bonds.

第六章：公司财务、会计

Chapter Six: Financial And Accounting Affairs Of Company

第一百七十四条：公司应当依照法律、行政法规和国务院财政主管部门的规定建立本公司的财务、会计制度。

Article 174 A company shall establish its financial and accounting system in accordance with the relevant national statutes, administrative regulations and the stipulations of the finance authority under the State Council.

第一百七十五条：公司应当在每一会计年度终了时制作财务会计报告，并依法经审查验证。

Article 175 A company shall prepare its financial and accounting reports at the end of each fiscal year, which shall be reviewed and verified in accordance with the law.

财务会计报告应当包括下列财务会计报表及附属明细表：

The financial and accounting reports shall include the following financial and accounting statements and subsidiary statements:

（一）资产负债表；

(i) balance sheet;

（二）损益表；

(ii) income statement;

（三）财务状况变动表；

(iii) statement of cash flow;

（四）财务情况说明书；

(iv) explanation of financial conditions;

（五）利润分配表。

(v) statement of profit distribution;

第一百七十六条：有限责任公司应当按照公司章程规定的期限将财务会计报告送交各股东。

Article 176 A limited liability company shall deliver its financial and accounting reports to each shareholder within the time limit prescribed by the articles of association.

股份有限公司的财务会计报告应当在召开股东大会年会的二十日以前置备于本公司，供股东查阅。

The financial and accounting reports of a joint stock limited company shall be available at the company's premises for shareholders' inspection as from the 20th day prior to the annual meeting of shareholders' general committee.

以募集设立方式成立的股份有限公司必须公告其财务会计报告。

A joint stock limited company established through public share offer shall make public its financial and accounting reports.

第一百七十七条：公司分配当年税后利润时，应当提取利润的百分之十列入公司法定公积金，并提取利润的百分之五至百分之十列入公司法定公益金。公司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。

Article 177 In distribution of its current year after-tax profit, a company shall allocate 10 percent to its statutory reserve fund, 5 to 10 percent to its statutory welfare fund. Allocation to the company's statutory reserve fund may be waived once the cumulative amount of funds therein exceeds 50 percent of the company's registered capital.

公司的法定公积金不足以弥补上一年度公司亏损的，在依照前款规定提取法定公积金和法定公益金之前，应当先用当年利润弥补亏损。

Where the statutory reserve fund is not sufficient to cover the company's loss from the previous year, the current year profit shall be used to cover such loss before allocation is made to the statutory reserve fund and the statutory welfare fund pursuant to the previous Paragraph.

公司在从税后利润中提取法定公积金后，经股东会决议，可以提取任意公积金。

After allocation to the statutory reserve fund has been made from the after-tax profit of the company, and upon adoption of a resolution by the shareholders' committee, allocation may be made to the discretionary reserve fund.

公司弥补亏损和提取公积金、法定公益金后所余利润，有限责任公司按照股东的出资比例分配，股份有限公司按照股东持有的股份比例分配。

After the company has covered its losses, and made allocation to the reserve funds and statutory welfare fund, the remainder of the profit shall be distributed to the shareholders in proportion to their capital contribution in the case of a limited liability company, and in proportion to their share holdings in the case of a joint stock limited company.

股东会或者董事会违反前款规定，在公司弥补亏损和提取法定公积金、法定公益金之前向股东分配利润的，必须将违反规定分配的利润退还公司。

If the shareholders' committee or the board of directors, in violation of the previous Paragraph, distributes profit to the shareholders before covering company losses and making allocation to company statutory reserve fund and statutory welfare fund, the profit so distributed must be returned to the company.

第一百七十八条：股份有限公司依照本法规定，以超过股票票面金额的发行价格发行股份所得的溢价款以及国务院财政主管部门规定列入资本公积金的其他收入，应当列为公司资本公积金。

Article 178 The premium received by a joint stock limited company through issuance of shares at prices above par value in accordance herewith, as well as other incomes to be allocated to the capital reserve fund as stipulated by the finance authority under the State Council, shall be allocated to the capital reserve fund.

第一百七十九条：公司的公积金用于弥补公司的亏损，扩大公司生产经营或者转为增加公司资本。

Article 179 The reserve funds of the company shall be used to cover company losses, expand its production and operation, or be converted to the company's increased capital.

股份有限公司经股东大会决议将公积金转为资本时，按股东原有股份比例派送新股或者增加每股面值。但法定公积金转为资本时，所留存的该项公积金不得少于注册资本的百分之二十五。

Where a joint stock limited company, upon adoption of a resolution by the shareholders' general committee, is to convert the reserve funds into company capital, new shares shall be distributed to the shareholders in proportion to their original share holdings, or the par value of each share shall be increased. Provided, however, upon conversion of statutory reserve fund into capital, the amount remaining in the statutory reserve fund may not fall below 25 percent of the registered capital.

第一百八十条：公司提取的法定公益金用于本公司职工的集体福利。

Article 180 The statutory welfare fund allocated by the company shall be used for the collective welfare of the workers thereof.

第一百八十一条：公司除法定的会计帐册外，不得另立会计帐册。对公司资产，不得以任何个人名义开立帐户存储。

Article 181 The company may not establish any separate accounting book besides the accounting books prescribed by law. The company's assets may not be deposited into any account established under an individual's name.

第七章：公司合并、分立

Chapter Seven: Merger And Division Of Company

第一百八十二条：公司合并或者分立，应当由公司的股东会作出决议。

Article 182 If a company is to undergo merger or division, its shareholders' committee shall adopt a resolution.

第一百八十三条：股份有限公司合并或者分立，必须经国务院授权的部门或者省级人民政府批准。

Article 183 The merger or division of a joint stock limited company is subject to approval by the department authorized by the State Council or the People's Government at the provincial level.

第一百八十四条：公司合并可以采取吸收合并和新设合并两种形式。

Article 184 Companies may be merged in two forms, i.e. merger by absorption and merger by consolidation.

一个公司吸收其他公司为吸收合并，被吸收的公司解散。二个以上公司合并设立一个新的公司为新设合并，合并各方解散。

One company absorbing another company is merger by absorption, and the company being absorbed shall be dissolved. Merger of two or more Companies through establishment of a new company is a consolidation, and the companies being consolidated shall be dissolved.

公司合并，应当由合并各方签订合并协议，并编制资产负债表及财产清单。公司应当自作出合并决议之日起十日内通知债权人，并于三十日内在报纸上至少公告三次。债权人自接到通知书之日起三十日内，未接到通知书的自第一次公告之日起九十日内，有权要求公司清偿债务或者提供相应的担保。不清偿债务或者不提供相应的担保的，公司不得合并。

In a merger of companies, the companies shall execute a merger agreement, and prepare their respective balance sheets and schedules of assets. The companies shall notify their creditors within 10 days of adoption of merger resolutions, and shall publish a notice at least 3 times in a newspaper within 30 days. Creditors are entitled to claim full payment of the debts of the companies or require the provision of appropriate assurances within 30 days of receipt of the notice, or within 90 days of publication of the first notice if such creditors did not receive the notice. The companies may not be merged unless debts are fully paid or appropriate assurances are provided.

公司合并时，合并各方的债权、债务，应当由合并后存续的公司或者新设的公司承继。

Once the companies are merged, the creditor's rights and debtor's liabilities of the merged companies shall be assumed by the surviving company or the newly formed company after merger.

第一百八十五条：公司分立，其财产作相应的分割。

Article 185 Where a company is to undergo division, its assets shall be divided accordingly.

公司分立时，应当编制资产负债表及财产清单。公司应当自作出分立决议之日起十日内通知债权人，并于三十日内在报纸上至少公告三次。债权人自接到通知书之日起三十日内，未接到通知书的自第一次公告之日起九十日内，有权要求公司清偿债务或者提供相应的担保。不清偿债务或者不提供相应的担保的，公司不得分立。

In dividing the company, a balance sheet and a schedule of assets shall be prepared. The company shall notify its creditors within 10 days of adoption of a division resolution, and shall publish a notice at least 3 times in a newspaper within 30 days. Creditors are entitled to claim full payment of the company's debts or require the provision of appropriate assurances within 30 days of receipt of the notice, or within 90 days of publication of the first notice if such creditors did not receive the notice. The company may not be divided unless debts are fully paid or appropriate assurances are provided.

公司分立前的债务按所达成的协议由分立后的公司承担。

The liabilities of the company prior to its division shall be assumed by the companies resulting from the division according to the agreement reached among them.

第一百八十六条：公司需要减少注册资本时，必须编制资产负债表及财产清单。

Article 186 Where a company needs to reduce its registered capital, a balance sheet and a schedule of assets must be prepared.

公司应当自作出减少注册资本决议之日起十日内通知债权人，并于三十日内在报纸上至少公告三次。债权人自接到通知书之日起三十日内，未接到通知书的自第一次公告之日起九十日内，有权要求公司清偿债务或者提供相应的担保。

The company shall notify its creditors within 10 days of adoption of a resolution to reduce its registered capital, and shall publish a notice at least 3 times in a newspaper within 30 days. Creditors are entitled to claim full payment of the company's debts or require the provision of appropriate assurances within 30 days of receipt of the notice, or within 90 days of publication of the first notice if such creditors did not receive the notice.

公司减少资本后的注册资本不得低于法定的最低限额。

After capital reduction, the company's registered capital may not fall below the statutory minimum capital level.

第一百八十七条：有限责任公司增加注册资本时，股东认缴新增资本的出资，按照本法设立有限责任公司缴纳出资的有关规定执行。

Article 187 When a limited liability company is to increase its registered capital, after subscription for the newly increased capital, the shareholders shall make capital contribution in accordance with the provisions hereof concerning capital contribution for the establishment of a limited liability company.

股份有限公司为增加注册资本发行新股时，股东认购新股应当按照本法设立股份有限公司缴纳股款的有关规定执行。

When a joint stock limited company is to issue new shares for the purpose of increasing its registered capital, the shareholders' subscription for the new shares shall be carried out in accordance with the provisions hereof concerning payment of share proceeds for the establishment of a joint stock limited company.

第一百八十八条：公司合并或者分立，登记事项发生变更的，应当依法向公司登记机关办理变更登记；公司解散的，应当依法办理公司注销登记；设立新公司的，应当依法办理公司设立登记。

Article 188 In the case of merger or division of a company, where any registered item requires change, amendment registration shall be carried out with the company registration authority in accordance with the law; where the company is dissolved, company de-registration shall be carried out in accordance with the law; where a new company is established, establishment registration shall be carried out in accordance with the law.

公司增加或者减少注册资本，应当依法向公司登记机关办理变更登记。

Where a company is to increase or reduce its registered capital, a amendment registration shall be carried out with the company registration authority in accordance with the law.

第八章：公司破产、解散和清算

Chapter Eight: Bankruptcy, Dissolution And Liquidation Of Company

第一百八十九条：公司因不能清偿到期债务，被依法宣告破产的，由人民法院依照有关法律的规定，组织股东、有关机关及有关专业人员成立清算组，对公司进行破产清算。

Article 189 Where a company is adjudged bankrupt in accordance with the law due to its failure to repay debts when due, the People's Court shall organize the shareholders, the relevant authorities and professionals to establish a liquidating committee to carry out the company's bankruptcy liquidation in accordance with the provisions of the applicable laws.

第一百九十条：公司有下列情形之一的，可以解散：

Article 190 A company may be dissolved in any of the following circumstances:

（一）公司章程规定的营业期限届满或者公司章程规定的其他解散事由出现时；

(i) the term of operation prescribed by the company's articles of association has expired, or any other cause for dissolution prescribed by the company's articles of association has occurred;

（二）股东会决议解散；

(ii) the shareholders' committee has adopted a resolution for dissolution;

（三）因公司合并或者分立需要解散的。

(iii) dissolution is required due to merger or division of the company.

第一百九十一条：公司依照前条第（一）项、第（二）项规定解散的，应当在十五日内成立清算组，有限责任公司的清算组由股东组成，股份有限公司的清算组由股东大会确定其人选；逾期不成立清算组进行清算的，债权人可以申请人民法院指定有关人员组成清算组，进行清算。人民法院应当受理该申请，并及时指定清算组成员，进行清算。

Article 191 Where a company is to be dissolved pursuant to Item (i) or (ii) of the previous Article, a liquidating committee shall be formed within 15 days; the liquidating committee of a limited liability company shall be composed of its shareholders, and members of the liquidating committee of a joint stock limited company shall be determined by the shareholders' general committee; where the company fails to form a liquidating committee to carry out liquidation within the prescribed time limit, its creditors may petition the People's Court to appoint the relevant persons to form a liquidating committee to carry out liquidation. The People's Court shall accept such petition, and promptly appoint members of the liquidating committee to carry out liquidation.

第一百九十二条：公司违反法律、行政法规被依法责令关闭的，应当解散，由有关主管机关组织股东、有关机关及有关专业人员成立清算组，进行清算。

Article 192 Where the company is ordered to terminate due to its violation of law or administrative regulations, the company shall be dissolved, and the relevant department in charge shall organize the shareholders, the relevant authority and related professionals to form a liquidating committee to carry out liquidation.

第一百九十三条：清算组在清算期间行使下列职权：

Article 193 The liquidating committee shall exercise the following authorities in the course of liquidation:

（一）清理公司财产，分别编制资产负债表和财产清单；

(i) identifying the company's assets, and preparing a balance sheet and a schedule of assets respectively;

（二）通知或者公告债权人；

(ii) notifying creditors through notice or public announcement;

（三）处理与清算有关的公司未了结的业务；

(iii) handling the company's ongoing businesses which are related to liquidation;

（四）清缴所欠税款；

(iv) making full payment of taxes owed;

（五）清理债权、债务；

(v) identifying the company's creditor's rights and debtor's liabilities;

（六）处理公司清偿债务后的剩余财产；

(vi) disposing of the remaining assets after full payment of company debts;

（七）代表公司参与民事诉讼活动。

(vii) participating in civil actions on behalf of the company.

第一百九十四条：清算组应当自成立之日起十日内通知债权人，并于六十日内在报纸上至少公告三次。债权人应当自接到通知书之日起三十日内，未接到通知书的自第一次公告之日起九十日内，向清算组申报其债权。

Article 194 The liquidating committee shall notify creditors within 10 days of its establishment, and shall make a public announcement in a newspaper at least 3 times within 60 days. Creditors shall file their creditor's rights with the liquidating committee within 30 days of receipt of the notice, and within 90 days of publication of the first notice if such creditors did not receive the notice.

债权人申报其债权，应当说明债权的有关事项，并提供证明材料。清算组应当对债权进行登记。

In filing for creditor's rights, the creditors shall state the relevant matters relating to the creditor's rights, and provide supporting materials. The liquidating committee shall record such creditor's rights.

第一百九十五条：清算组在清理公司财产、编制资产负债表和财产清单后，应当制定清算方案，并报股东会或者有关主管机关确认。

Article 195 After identifying the company's assets and preparing the balance sheet and schedule of assets, the liquidating committee shall prepare a liquidating plan, which shall be submitted to the shareholders' committee or the relevant authority for ratification.

公司财产能够清偿公司债务的，分别支付清算费用、职工工资和劳动保险费用，缴纳所欠税款，清偿公司债务。

Where the company's assets are sufficient for payment of company debts, such assets shall be paid out in the following order: payment of liquidating expenses, payment of wages and expenses for labor insurance of the workers, payment of taxes owed, and payment of company debts.

公司财产按前款规定清偿后的剩余财产，有限责任公司按照股东的出资比例分配，股份有限公司按照股东持有的股份比例分配。

After payments have been made in accordance with the previous Paragraph, the remaining assets shall be distributed to the shareholders in proportion to their shares of capital contribution in the case of a limited liability company, and in proportion to their share holdings in the case of a joint stock limited company.

清算期间，公司不得开展新的经营活动。公司财产在未按第二款的规定清偿前，不得分配给股东。

In the course of liquidation, the company may not conduct new business. Before payments have been made in accordance with Paragraph 2 above, the assets of the company may not be distributed to the shareholders.

第一百九十六条：因公司解散而清算，清算组在清理公司财产、编制资产负债表和财产清单后，发现公司财产不足清偿债务的，应当立即向人民法院申请宣告破产。

Article 196 Where a company commences liquidation due to its dissolution, and after identification of company assets and preparation of the balance sheet and schedule of assets, the liquidating committee discovers that the company does not have sufficient assets to fully repay company debts, the liquidating committee shall immediately file a bankruptcy application with the People's Court.

公司经人民法院裁定宣告破产后，清算组应当将清算事务移交给人民法院。

Once the company is adjudged bankrupt by a ruling of the People's Court, the liquidating committee shall transfer the liquidating affairs to the People's Court.

第一百九十七条：公司清算结束后，清算组应当制作清算报告，报股东会或者有关主管机关确认，并报送公司登记机关，申请注销公司登记，公告公司终止。不申请注销公司登记的，由公司登记机关吊销其公司营业执照，并予以公告。

Article 197 Upon completion of a company's liquidation, the liquidating committee shall prepare a liquidating report, which shall be submitted to the shareholders' committee or the relevant authority for ratification, and upon ratification, the liquidating committee shall submit such report to the company registration authority to apply for company de-registration, and make a public announcement of the company's termination. Where the company fails to apply for company de-registration, the company registration authority shall revoke its business license and make a public announcement.

第一百九十八条：清算组成员应当忠于职守，依法履行清算义务。

Article 198 Members of the liquidating committee shall faithfully perform their duties and carry out their liquidating obligations in accordance with the law.

清算组成员不得利用职权收受贿赂或者其他非法收入，不得侵占公司财产。

Members of the liquidating committee may not abuse their authorities by accepting bribes or receiving other illegal income, and may not misappropriate company assets.

清算组成员因故意或者重大过失给公司或者债权人造成损失的，应当承担赔偿责任。

A committee member who causes loss to the company or its creditors due to his intentional misconduct or gross negligence shall be liable for damages.

第九章：外国公司的分支机构

Chapter Nine: Branch Of Foreign Company

第一百九十九条：外国公司依照本法规定可以在中国境内设立分支机构，从事生产经营活动。

Article 199 Foreign companies may establish branches within China to conduct business in accordance herewith.

本法所称外国公司是指依照外国法律在中国境外登记成立的公司。

A foreign company referred to herein means a company registered and established outside China under foreign laws.

第二百条：外国公司在中国境内设立分支机构，必须向中国主管机关提出申请，并提交其公司章程、所属国的公司登记证书等有关文件，经批准后，向公司登记机关依法办理登记，领取营业执照。

Article 200 In order to establish a branch within China, a foreign company must submit an application to the Chinese authority in charge, together with the relevant documents such as its articles of association, the company registration certificate issued in its home country, etc. Upon approval, it shall carry out registration with the company registration authority and be issued a business license.

外国公司分支机构的审批办法由国务院另行规定。

The examination and approval procedure for branches of foreign companies shall be separately prescribed by the State Council.

第二百零一条：外国公司在中国境内设立分支机构，必须在中国境内指定负责该分支机构的代表人或者代理人，并向该分支机构拨付与其所从事的经营活动相适应的资金。

Article 201 In order to establish a branch within China, a foreign company must appoint a representative or agent in charge of such branch within China, and fund its branch as appropriate in light of the nature of its intended business.

对外国公司分支机构的经营资金需要规定最低限额的，由国务院另行规定。

Where operation of certain branches of foreign companies is subject to a minimum level of funding, such level shall be prescribed by the State Council separately.

第二百零二条：外国公司的分支机构应当在其名称中标明该外国公司的国籍及责任形式。

Article 202 The branch of a foreign company shall identify the nationality and form of liability in its name.

外国公司的分支机构应当在本机构中置备该外国公司章程。

The branch of a foreign company shall maintain the articles of association of such foreign company on its premises.

第二百零三条：外国公司属于外国法人，其在中国境内设立的分支机构不具有中国法人资格。

Article 203 A foreign company is a foreign legal person, and its branch established within China does not have the status of a Chinese legal person.

外国公司对其分支机构在中国境内进行经营活动承担民事责任。

A foreign company shall bear civil liabilities in respect of the business conducted by its branch within China.

第二百零四条：经批准设立的外国公司分支机构，在中国境内从事业务活动，必须遵守中国的法律，不得损害中国的社会公共利益，其合法权益受中国法律保护。

Article 204 While conducting business within China, the branch of a foreign company established after approval must abide by Chines law, and may not harm the public interest of China, and its lawful rights and interests are protected by Chinese law.

第二百零五条：外国公司撤销其在中国境内的分支机构时，必须依法清偿债务，按照本法有关公司清算程序的规定进行清算。未清偿债务之前，不得将其分支机构的财产移至中国境外。

Article 205 When a foreign company cancels its branch within China, such company must fully repay the debts thereof in accordance with the law and carry out liquidation in accordance with the provisions hereof concerning company liquidation procedure. The company may not transfer the assets of such branch abroad prior to full repayment of its debts.

第十章：法律责任

Chapter Ten: Legal Liabilities

第二百零六条：违反本法规定，办理公司登记时虚报注册资本、提交虚假证明文件或者采取其他欺诈手段隐瞒重要事实取得公司登记的，责令改正，对虚报注册资本的公司，处以虚报注册资本金额百分之五以上百分之十以下的罚款；对提交虚假证明文件或者采取其他欺诈手段隐瞒重要事实的公司，处以一万元以上十万元以下的罚款；情节严重的，撤销公司登记。构成犯罪的，依法追究刑事责任。

Article 206 In the case of company registration, where an applicant obtains company registration in violation hereof by making false statement of registered capital, submitting false certificates or by concealing material facts through other fraudulent means, the company shall be ordered to make rectification, and in case false statement of registered capital was made, the company shall be fined not less than 5 percent but not more than 10 percent of the amount of registered capital falsely stated; the company submitting false certificates or concealing material facts shall be fined not less than 10,000 Yuan but not more than 100,000 Yuan; where the circumstances are serious, the company registration shall be revoked. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百零七条：制作虚假的招股说明书、认股书、公司债券募集办法发行股票或者公司债券的，责令停止发行，退还所募资金及其利息，处以非法募集资金金额百分之一以上百分之五以下的罚款。构成犯罪的，依法追究刑事责任。

Article 207 In the case of issue of company shares or bonds, where the prospectus, subscription form, or plan for company bonds offer is falsely prepared, the issuing activities shall be ordered to cease, and an order shall be issued for the return of the proceeds received together with interest thereon, and a fine of not less than 1 percent but not more than 5 percent of the proceeds illegally received shall be imposed. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百零八条：公司的发起人、股东未交付货币、实物或者未转移财产权，虚假出资，欺骗债权人和社会公众的，责令改正，处以虚假出资金额百分之五以上百分之十以下的罚款。构成犯罪的，依法追究刑事责任。

Article 208 In the case of capital contribution, where the sponsors or shareholders falsify capital contribution by failing to pay money, to deliver tangible goods or to transfer property rights, thus defrauding the creditors or the public, rectification shall be ordered, and such persons shall be fined not less than 5 percent but not more than 10 percent of the amount of capital contribution falsified. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百零九条：公司的发起人、股东在公司成立后，抽逃其出资的，责令改正，处以所抽逃出资金额百分之五以上百分之十以下的罚款。构成犯罪的，依法追究刑事责任。

Article 209 Where the sponsors or shareholders of a company withdraw their capital contribution after the establishment of the company, they shall be ordered to make rectification, and such persons shall be fined not less than 5 percent but not more than 10 percent of the amount of capital contribution withdrawn. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十条：未经本法规定的有关主管部门的批准，擅自发行股票或者公司债券的，责令停止发行，退还所募资金及其利息，处以非法所募资金金额百分之一以上百分之五以下的罚款。构成犯罪的，依法追究刑事责任。

Article 210 Where a company issues company shares or bonds on its own without approval by the appropriate authorities provided for herein, the issuing activities shall be ordered to cease, and the proceeds received, together with interest thereon, shall be returned, and a fine of not less than 1 percent but not more than 5 percent of the proceeds illegally received shall be imposed. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十一条：公司违反本法规定，在法定的会计帐册以外另立会计帐册的，责令改正，处以一万元以上十万元以下的罚款。构成犯罪的，依法追究刑事责任。

Article 211 Where a company, in violation hereof, establishes another set of accounting books besides those prescribed by law, it shall be ordered to make rectification, and the company shall be fined not less than 10,000 Yuan but not more than 100,000 Yuan. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

将公司资产以任何个人名义开立帐户存储的，没收违法所得，并处以违法所得一倍以上五倍以下的罚款。构成犯罪的，依法追究刑事责任。

Where company assets are deposited into an account established under an individual's name, the illegal gain shall be confiscated, and a fine of not less than 2 times but not more than 5 times of the illegal gain shall be imposed. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十二条：公司向股东和社会公众提供虚假的或者隐瞒重要事实的财务会计报告的，对直接负责的主管人员和其他直接责任人员处以一万元以上十万元以下的罚款。构成犯罪的，依法追究刑事责任。

Article 212 Where a company provides to its shareholders and the public financial and accounting reports which are false or which conceal material facts, a fine of not less than 10,000 Yuan but not more than 100,000 Yuan shall be imposed on the supervisor directly in charge and the other person(s) directly responsible. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十三条：违反本法规定，将国有资产低价折股、低价出售或者无偿分给个人的，对直接负责的主管人员和其他直接责任人员依法给予行政处分。构成犯罪的，依法追究刑事责任。

Article 213 Where, in violation hereof, state-owned assets are converted into shares at low prices or sold to individuals at low prices, or distributed to individuals without compensation, administrative penalty shall be imposed on the supervisor directly in charge and the other person(s) directly responsible. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十四条：董事、监事、经理利用职权收受贿赂、其他非法收入或者侵占公司财产的，没收违法所得，责令退还公司财产，由公司给予处分。构成犯罪的，依法追究刑事责任。

Article 214 Where the directors, supervisors, or the general manager abuse their authorities by accepting bribes or receiving other illegal income, or convert company assets, any such illegal gain shall be confiscated, and they shall be ordered to return the company assets and shall be disciplined by the company. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

董事、经理挪用公司资金或者将公司资金借贷给他人的，责令退还公司的资金，由公司给予处分，将其所得收入归公司所有。构成犯罪的，依法追究刑事责任。

Where a director or the general manager misappropriates company funds or loan company funds to third parties, he shall be ordered to return the company funds and shall be disciplined by the company, and the income derived from such transaction shall be turned over to the company. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

董事、经理违反本法规定，以公司资产为本公司的股东或者其他个人债务提供担保的，责令取消担保，并依法承担赔偿责任，将违法提供担保取得的收入归公司所有。情节严重的，由公司给予处分。

Where, in violation hereof, the directors or the general manager gives company assets as security for the personal debts of any director of the company or any other person, the security arrangement shall be ordered to be canceled, and such persons shall be held liable for damages in accordance with the law, and the income derived from the illegal provision of security shall be turned over to the company. Where the circumstance is serious, such persons shall be disciplined by the company.

第二百一十五条：董事、经理违反本法规定自营或者为他人经营与其所任职公司同类的营业的，除将其所得收入归公司所有外，并可由公司给予处分。

Article 215 Where, in violation hereof, a director or the general manager engages in the same business as the company either for his own account or for another person's account, in addition to turning over any income so derived to the company, such person may also be disciplined by the company.

第二百一十六条：公司不按照本法规定提取法定公积金、法定公益金的，责令如数补足应当提取的金额，并可对公司处以一万元以上十万元以下的罚款。

Article 216 Where a company fails to make allocation to the statutory reserve fund and statutory welfare fund in accordance herewith, such company shall be ordered to make full allocation to the required funds, and a fine of not less than 10,000 Yuan but not more than 100,000 Yuan may be levied on the company.

第二百一十七条：公司在合并、分立、减少注册资本或者进行清算时，不按照本法规定通知或者公告债权人的，责令改正，对公司处以一万元以上十万元以下的罚款。

Article 217 Where a company fails to notify creditors through notice or public announcement in accordance herewith while carrying out merger, division, reduction of registered capital, or liquidation, it shall be ordered to make rectification, and the company shall be fined not less than 10,000 Yuan but not more than 100,000 Yuan.

公司在进行清算时，隐匿财产，对资产负债表或者财产清单作虚伪记载或者未清偿债务前分配公司财产的，责令改正，对公司处以隐匿财产或者未清偿债务前分配公司财产金额百分之一以上百分之五以下的罚款。对直接负责的主管人员和其他直接责任人员处以一万元以上十万元以下的罚款。构成犯罪的，依法追究刑事责任。

Where in the course of liquidation, the company conceals its assets, makes false statements in its balance sheet or schedule of assets, or distributes company assets prior to full repayment of company debts, it shall be ordered to make rectification, and the company shall be fined not less than 1 percent but not more than 5 percent of the value of the concealed assets, or the value of the assets distributed prior to full repayment of company debts. A fine of not less than 10,000 Yuan but not more than 100,000 Yuan shall be imposed on the supervisor directly in charge and the other person(s) directly responsible. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十八条：清算组不按照本法规定向公司登记机关报送清算报告，或者报送清算报告隐瞒重要事实或者有重大遗漏的，责令改正。

Article 218 Where the liquidating committee fails to submit the liquidating report to the company registration authority in accordance herewith, or conceals any material fact or makes any material omission in the liquidating report submitted, it shall be ordered to make rectification.

清算组成员利用职权徇私舞弊、谋取非法收入或者侵占公司财产的，责令退还公司财产，没收违法所得，并可处以违法所得一倍以上五倍以下的罚款。构成犯罪的，依法追究刑事责任。

Where a member of the liquidating committee abuses his authority to engage in fraudulent activity for private gain, to obtain illegal income or convert company assets, such member shall be ordered to return the company assets, and the illegal income shall be confiscated, and such member may be fined not less than 2 times but not more than 5 times the illegal income. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百一十九条：承担资产评估、验资或者验证的机构提供虚假证明文件的，没收违法所得，处以违法所得一倍以上五倍以下的罚款，并可由有关主管部门依法责令该机构停业，吊销直接责任人员的资格证书。构成犯罪的，依法追究刑事责任。

Article 219 Where an institution conducting assets appraisal, capital verification, or testing and verification provides a false certificate, the illegal income so derived shall be confiscated, and a fine of not less than 2 times but not more than 5 times the illegal income shall be imposed, and the relevant authority in charge may order such institution to cease operation, and revoke the qualification certificates of the persons directly responsible. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

承担资产评估、验资或者验证的机构因过失提供有重大遗漏的报告的，责令改正，情节较重的，处以所得收入一倍以上三倍以下的罚款，并可由有关主管部门依法责令该机构停业，吊销直接责任人员的资格证书。

Where an institution conducting assets appraisal, capital verification or testing and verification provides a report with material omission due to its negligence, it shall be ordered to make rectification, and where the circumstance is relatively serious, a fine of not less than 2 times but not more than 3 times the income so derived shall be imposed, and the relevant authority in charge may order such institution to cease operation, and revoke the qualification certificates of the persons directly responsible.

第二百二十条：国务院授权的有关主管部门，对不符合本法规定条件的设立公司的申请予以批准，或者对不符合本法规定条件的股份发行的申请予以批准，情节严重的，对直接负责的主管人员和其他直接责任人员，依法给予行政处分。构成犯罪的，依法追究刑事责任。

Article 220 Where the relevant authority in charge authorized by the State Council approves an application for the establishment of a company which fails to meet the requirements prescribed herein, or approves an application for issue of shares which fails to meet the requirements prescribed herein, and the circumstance is serious, administrative penalty shall be imposed on the supervisor directly in charge and the other person(s) directly responsible in accordance with the law. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百二十一条：国务院证券管理部门对不符合本法规定条件的募集股份、股票上市和债券发行的申请予以批准，情节严重的，对直接负责的主管人员和其他直接责任人员，依法给予行政处分。构成犯罪的，依法追究刑事责任。

Article 221 Where the securities regulatory authority under the State Council approves an application for share offer, share listing, or bonds issue which fails to meet the requirements prescribed herein, and the circumstance is serious, administrative penalty shall be imposed on the supervisor directly in charge and the other person(s) directly responsible in accordance with the law. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百二十二条：公司登记机关对不符合本法规定条件的登记申请予以登记，情节严重的，对直接负责的主管人员和其他直接责任人员，依法给予行政处分。构成犯罪的，依法追究刑事责任。

Article 222 Where the company registration authority grants registration to an application which fails to meet the requirements prescribed herein, and the circumstance is serious, administrative penalty shall be imposed on the supervisor directly in charge and the other person(s) directly responsible in accordance with the law. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百二十三条：公司登记机关的上级部门强令公司登记机关对不符合本法规定条件的登记申请予以登记的，或者对违法登记进行包庇的，对直接负责的主管人员和其他直接责任人员依法给予行政处分。构成犯罪的，依法追究刑事责任。

Article 223 Where the department in charge of the company registration authority compels it to grant registration to an application which fails to meet the requirements prescribed herein, or engages in cover up for an illegal registration, administrative penalty shall be imposed on the supervisor directly in charge and the other person(s) directly responsible in accordance with the law. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百二十四条：未依法登记为有限责任公司或者股份有限公司，而冒用有限责任公司或者股份有限公司名义的，责令改正或者予以取缔，并可处以一万元以上十万元以下的罚款。构成犯罪的，依法追究刑事责任。

Article 224 Where an entity passes itself off as a limited liability company or joint stock limited company while not registered as such in accordance with the law, it shall be ordered to make rectification or such entity shall be closed down, and a fine of not less than 10,000 Yuan but not more than 100,000 Yuan may be imposed. Where such action constitutes a crime, criminal liability shall be imposed in accordance with the law.

第二百二十五条：公司成立后无正当理由超过六个月未开业的，或者开业后自行停业连续六个月以上的，由公司登记机关吊销其公司营业执照。

Article 225 Where a company fails to commence operation for more than 6 months without proper cause, or suspends operation on its own without proper cause for more than 6 consecutive months after commencement of operation, the company registration authority shall revoke its company business license.

公司登记事项发生变更时，未按照本法规定办理有关变更登记的，责令限期登记，逾期不登记的，处以一万元以上十万元以下的罚款。

Where the company fails to carry out amendment registration in accordance herewith when a registered item of the company has changed, it shall be ordered to register within a prescribed time limit, and where the company has not carried out registration after expiration of the time limit, a fine of not less than 10,000 Yuan but not more than 100,000 Yuan shall be imposed.

第二百二十六条：外国公司违反本法规定，擅自在中国境内设立分支机构的，责令改正或者关闭，并可处以一万元以上十万元以下的罚款。

Article 226 Where, in violation hereof, a foreign company establishes a branch within China without approval, it shall be ordered to make rectification, or such branch shall be ordered to terminate, and a fine of not less than 10,000 Yuan but not more than 100,000 Yuan may be imposed.

第二百二十七条：依照本法履行审批职责的有关主管部门，对符合法定条件的申请，不予批准的，或者公司登记机关对符合法定条件的申请，不予登记的，当事人可以依法申请复议或者提起行政诉讼。

Article 227 Where a relevant authority performing approval function hereunder fails to approve an application which meets conditions prescribed by law, or the company registration authority fails to grant registration to an application which meets conditions prescribed by law, the affected party may apply for administrative review or institute an administrative action in accordance with the law.

第二百二十八条：公司违反本法规定，应当承担民事赔偿责任和缴纳罚款、罚金的，其财产不足以支付时，先承担民事赔偿责任。

Article 228 Where a company violates of this Law, and is therefore liable for civil damages as well as for an administrative fine or criminal fine, and its assets are not sufficient to cover both, its assets shall first be used to cover the civil liability for damages.

第十一章：附则

Chapter Eleven: Supplementary Provisions

第二百二十九条：本法施行前依照法律、行政法规、地方性法规和国务院有关主管部门制定的《有限责任公司规范意见》、《股份有限公司规范意见》登记成立的公司，继续保留，其中不完全具备本法规定的条件的，应当在规定的限期内达到本法规定的条件。具体实施办法，由国务院另行规定。

Article 229 (Amended) Companies registered and established prior to the implementation of this Law, in accordance with law, administrative regulations, local regulations, and the Standard Opinions Concerning Limited Liability Companies and the Standard Opinions Concerning Joint Stock Limited Companies formulated by the relevant authority in charge under the State Council, shall remain in existence, provided that those companies which do not meet all the conditions prescribed herein shall meet such conditions within the time limit prescribed. Detailed implementing measures shall be formulated by the State Council separately.

属于高新技术的股份有限公司，发起人以工业产权和非专利技术作价出资的金额占公司注册资本的比例，公司发行新股、申请股票上市的条件，由国务院另行规定。

In the case of a Joint Stock Limited Liability Company in the high and new technology category, the ratio of capital contribution in the form of industrial technology and non-patented proprietary technology by sponsors as a percentage of registered capital, the conditions for issuance of new shares or initial public offering shall be separately stipulated by the State Council.

第二百三十条：本法自1994年7月1日起施行。

Article 230 This Law shall become operative as of July 1, 1994.