Set up a joint venture in China with this Sino-Foreign Joint Venture Agreement, in accordance with the Management of Foreign Joint Venture Enterprise Law of the PRC.
- This joint venture can be between individuals or corporate bodies, with at least one party being resident in China.
- Any party that fails to pay in its investment by the due date is required to pay a penalty calculated as a percentage of its total investment amount.
- If one of the venturers wishes to sell all or part of its interest in the joint venture, the other party has a first right of refusal to acquire the interest.
- The board of directors appointed by the venturers will make all significant decisions for the joint venture. The chairman of the board will be the joint venture's legal representative.
- The board will appoint a general manager to be responsible for the joint venture's operations. The general manager, in turn, will appoint administrative management heads to run the day-to-day business.
- Supplies, equipment, commodities and materials will be purchased in China if all terms are equal. Any items purchased overseas must be based on the best price â„ performance mix.
- All financial audits must be done by an accountant registered and allowed to practice in China.
This Sino-Foreign Joint Venture Agreement
template is governed by the laws of the People's Republic of China. This is an English-language legal form. A Chinese translation of the document may be required.