ChinaFIG - Foreign Equity, Stock or Share Contribution Basic Requirements - Article 29, Order #10
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Foreign Equity, Stock or Share Contribution Basic Requirements - Article 29, Order #10
When a foreign company utilizes equity as a method of payment for a Chinese Company, it must adhere to the following items:
1. the equity transferred is legally owned & may be distributed by the foreign company, with regard to any applicable regulations;
2. the equity transferred does not carry any questions related to ownership and is not subject to any lien/encumbrance/pledge;
3. the shares of the foreign company a publicly listed on an exchange board (over the counter exchanges are not recognized);
4. the shares of the foreign company have not fluctuated greatly over the past year;
5. the above mentioned items are required in relation to Special Purpose Vehicles, to be discuss in a later section.
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