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In relation to the Civil Procedures Law of China: (b) explain the designation of jurisdiction by the Chinese courts in dealing with civil disputes; (4 marks)
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Four private Enterprises A, B, C and D incorporated as a limited liability company, Yuanda Co Ltd, with a registered capital of RMB 40 million yuan. After three years’ successful business operations from 2005–2008, Yuanda Co Ltd made profits and the net assets of the company increased to RMB 60 million yuan. In January 2009, at the annual shareholders’ meeting of the company, Yuanda Co Ltd adopted a resolution for the following three items: Required: Explain whether the above resolutions (a), (b) and (c) were in conformity with the relevant provisions of the Company Law and Securities Law. NOTE: The mark allocation is shown against each resolution. (c) On the issue of the use of the statutory common reserve fund – With a vote by the shareholders representing two thirds of the equity, the shareholders’ meeting decided to convert RMB 2·50 million yuan out of RMB 10 million yuan of the statutory common reserve fund to the registered capital. (3 marks)
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