Fujian Province, Tentative Measures for the Administration of Equity Investment Enterprises
福建省股权投资企业管理暂行办法
February 07, 2012 | BY
clpstaff &clp articles &Fujian tightens administration on fund raising in the name of equity investment enterprises.
Interpreting authorities: the provincial development and reform commission and provincial administration for industry and commerce
Applicability: The term “equity investment enterprises” refers to non-securities investment enterprises established by way of an offer to specific targets in a non-public manner for the purpose of engaging in equity investment in unlisted enterprises and providing value-added services. The term “equity investment management enterprises” (Management Enterprises) refers to enterprises that are entrusted with the management and operation of the assets of equity investment enterprises (Article 2).
The Measures apply to equity investment enterprises and their Management Enterprises registered in the jurisdiction of Fujian Province other than venture investment enterprises, foreign-invested venture investment enterprises and their Management Enterprises. The establishment, administration and record filing of, and the various preferential policies for, venture investment enterprises, foreign-invested venture investment enterprises and their Management Enterprises shall be governed by existing state and provincial policies (Article 5).
Main contents: An equity investment enterprise may either manage itself by establishing an internal management team or appoint a Management Enterprise to manage its assets through an entrusted management arrangement. In the latter case, the equity investment enterprise shall conclude an entrusted management agreement with the entrusted Management Enterprise (Article 3). Equity investment enterprises and Management Enterprises may take the organisational form of a company or partnership (Article 4).
The number of promoters of equity investment enterprises and Management Enterprises established in the form of companies limited by shares shall be between two and 200. In the case of equity investment enterprises and Management Enterprises established in the form of limited liability companies, the number of shareholders may not exceed 50. Where the equity investment enterprises and Management Enterprises are established in the form of partnerships, the number of partners shall be between two and 50 (Article 9).
The registered capital or the amount of capital contribution of all partners of equity investment enterprises shall be at least Rmb30 million, with a first instalment of at least Rmb10 million. The registered capital or the amount of capital contribution of all partners of Management Enterprises shall be at least Rmb10 million, with a first instalment of at least Rmb5 million (Article 10). The registered capital of equity investment enterprises shall be offered in a non-public manner, and may not be offered to the public in any manner (Article 11).
The registered business scope of equity investment enterprises shall be non-securities equity investment and consultancy services related to equity investment. The business scope of Management Enterprises shall include entrusted non-securities equity investment management and consultancy services related to equity investment (Article 12).
clp reference:3700/11.10.17/FJpromulgated:2011-10-17effective:2011-10-17This premium content is reserved for
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