questions and answers

Are company members entitled to dontate a part or all of their capital to others? Does the recipient automatically become a company member?

For Multiple-member Limited Liability Companies: the members are entitled to donate the capital contributions to others; if the recipient is a spouse, parent, child or a relative up to the third rank of inheritance, the recipient shall become a member of the company. If the recipient is another person, the recipient shall only become a member of the company upon approval of the Members’ Council.

For Single-member Limited Liability Companies: Should a company owner transfer or donate part of his/her charter capital to one or more than one organization or individual or the company admits a new member, the company shall organize its management in the corresponding form of enterprise and register for a change in enterprise registration content within 10 days after completing such transfer, donation or admission.

For Joint Stock Companies: the shareholders have the right to donate the shares to the others; the recipient shall become a shareholder of the company.

For Partnerships:

    • A partnership may admit new general partners or limited partners; the admission of new partners shall be approved by the Members’ Council of the partnership.
    • A limited partner may freely dontate part or whole of his/her capital contribution to another person. The recipient shall become a limited partner of the company.

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