the contract for sino-foreign cooperative joint venture
chapter 11 labor management.
article 30 labor contract covering the recruitment, employment, dismissal andresignation, wages, labor insurance, welfare, rewards, penalties and othermatters concerning the staff and workers of the cooperative venturecompany shall be drawn up between the cooperative venture company and thetrade union of the cooperative venture company as a whole, or theindividual employees in the cooperative venture company as a whole orindividual employees in accordance with the law of the people’’s republicof china on chinese-foreign cooperative joint ventures. the labor contracts shall, after being signed, be filed with the locallabor management department.
article 31 the appointment of high-ranking administrative personnel recommendedby both parties, their salaries, social insurance, welfare and thestandard of travelling expenses etc. shall be decided by the meeting of the board of directors.
chapter 12 taxes, finance and audit.
article 32 the cooperative venture company shall pay taxes in accordance with theprovisions of chinese laws and other relative regulations.
article 33 staff members and workers of the cooperative venture company shall payindividual income tax according to the individual income tax law of thepeople’’s republic of china.
article 34 the fiscal year of the joint venture company shall be from january 1to december 31. all vouchers, receipts, statistic statements and reportsshall be written in chinese. (note: a foreign language can be used concurrently with mutualconsent).
article 35 financial checking and examination of the cooperative venture companyshall be conducted by an auditor registered in china and reports shall besubmitted to the board of directors and the general manager. in case party b considers it necessary to employ a foreign auditorregistered in another country to undertake annual financial checking andexamination, party a shall give its consent. all the expenses thereofshall be borne by party b.
article 36 in the first three months of each fiscal year, the manager shallprepare the previous year’’s balance sheet, profit and loss statement andproposal regarding the disposal of profits, and submit them to the boardof directors for examination and approval.
chapter 13 duration of the cooperative venture
article 37 the duration of the cooperative venture company is______ years. theestablishment date of the joint venture company shall be the date on whichthe business license of the cooperative venture company is issued. an application for the extension of the duration, proposed by oneparty and unanimously approved by the board of directors, shall besubmitted to the ministry of foreign trade and economic cooperation (orthe examination and approval authority entrusted by it) six months priorto the expiry date of the joint venture.
chapter 14 the disposal of assets after the expiration of the duration
article 38 upon the expiration of the duration, the assets shall belong to partya.
chapter 15 insurance.
article 39 insurance policies of the joint venture company on various kinds ofrisks shall be underwritten with the people’’s republic of china. types,value and duration of insurance shall be decided by the board of directorsin accordance with the provisions of the people’’s insurance company ofchina.
chapter 16 the amendment, alteration and termination of the con- tract
article 40 the amendment of the contract or other appendices shall come intoforce only after a written agreement has been signed by party a and partyb and approved by the original examination and approval authority.
article 41 in case of inability to fulfil the contract or to continue operationdue to heavy losses in successive years as a result of force majeure, theduration of the cooperative venture and the contract shall be terminatedbefore the time of expiration after being unanimously agreed upon by theboard of directors and approved by the original examination and approvalauthority.
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