The Legislation Research On Foreign Investment Joint Stock Company In China

This paper analyzes the basic theory of foreign investment joint stock Company at first. It sets out the concept and legal characteristics of foreign investment joint stock company, and compare it with foreign investment limited corporation, partnership and whole foreign owned enterprises. Foreign investment joint stock company has obvious advantages in attracting foreign investment, innovating investment climate and management. Secondly, this paper introduces briefly other countries?experiences on foreign investmentjoint stock company legislation. Thirdly, this paper analyzes mainly the existing state and problems of foreign investment joint stock company legislation in China. These problems include that legislation model is unscientific, the scope of investors is limited, establishing procedure is simple, the proportion of foreign investors owning stocks is unreasonable, the establishment of stock transfer is simple, the establishment of organization is bare and some legal items are inaccurate. And then this paper analyzes the reasons resulting in the above problems, such as the wrong ideas of legislation, the vague theory on foreign investment joint stock company, the low degree of market economic development and the risks of establishing foreign investment joint stock company. At last, this paper suggests that we should establish Chinese foreign investment joint stock company law. The law should establish the legal status of foreign investment joint stock, and regard it as Chinese juridical person; should establish the market scope of forbidding, limiting, encouraging or permitting foreign investors invest; should establish the conditions and procedure of setting up foreign investment joint stock company; should establish legal registered capital system, and the lowest registered capital number; should permit foreign investors invest with technology and material. To technology, the law should have strict conditions. To material, the law should change them into stocks reasonably; should establish different proportion of foreign investors owning stocks according to different fields; should establish the rules of stock transfer, and limit directors, supervisors and managers to transfer their stocks; should establish the organization of foreign investment joint stock company, lower the condition of asking for opening temporary stock-holder meeting and permit stock-holder turn to legal remedies; should give foreign investment just treatment, and should not carry out nationalization and requisition to foreign investment joint stock company; settlement measures of investment disputes should include negotiation, arbitration and judicial settlement.