Company charter is not only a legal requirement but also has a basic contract in internal management on relationship between the members/partner, ownership, on financial and tax planning, prevent and help to settle in a proper manner in case of any dispute.
We would like to present to you about company charter with the following key content:
COMPANY CHARTER
A basic contract between the owners
and shall be tailored made and managed by the expertise
THE COMPANY’S CHARTER CONSISTS OF THE CHARTER UPON REGISTRATION AND AMENDMENTS MADE TO THE CHARTER THROUGHOUT THE ENTERPRISE’S OPERATION. MAIN CONTENTS OF THE COMPANY CHARTER:
- Charter capital, total shares, types of shares, and nominal values of each type of shares if the enterprise is a joint-stock company.
- Full names, addresses, nationalities, and other information of general partners if the enterprise is a partnership, of the owners or members if the enterprise is a limited liability company, of founding shareholders if the enterprise is a joint-stock company, stakes of each member if the enterprise is a limited liability company or partnership, the quantity of shares, types of shares, and nominal value of each type of the founding shareholders.
- Rights and obligations of members/partners if the enterprise is a limited liability company/partnership, of shareholders if the enterprise is a joint-stock company.
- Organizational structure.
- The legal representative if the enterprise is a limited liability company or a joint-stock company.
- Method for ratifying the enterprise’s decisions, rules for resolution of internal dispute.
- Bases and methods for determination of wages and bonus for managers and controllers.
- Cases in which a member is entitled to request the enterprise to buy his/her stake (if the enterprise is a limited liability company) or shares (if the enterprise is a joint-stock company).
- Rules for distribution of post-tax profit and handling of business loss.
- Cases of dissolution, procedures for dissolution and asset liquidation.
- Rules for making amendments to the company charter.
WHEN APPLYING FOR BUSINESS REGISTRATION, THE CHARTER MUST BEAR THE FULL NAMES AND SIGNATURES OF THE FOLLOWING PERSONS:
- General partners if the enterprise is a partnership.
- The enterprise’s owner being an individual or the legal representative of the enterprise’s owner being an organization (if the enterprise is a single-member limited liability company).
- Members being individuals or legal representatives or authorized representatives of the members who are organizations (if the enterprise is a multi-member limited liability company).
- Founding shareholders being individuals and legal representative or authorized representative of founding shareholders being organizations if the enterprise is a joint-stock company.
EVERY TIME THE AMENDED CHARTER MUST BEAR THE FULL NAMES AND SIGNATURES OF THE FOLLOWING PERSONS:
- The President of the Member assembly if the enterprise is a partnership.
- The owner, legal representative of the owner, or the legal representative if the enterprise is a single-member limited liability company.
- The legal representative if the enterprise is a multi-member limited liability company or joint-stock company.
As a basic contract between the owners, company charter is bases for business relationship between the investors and guarantees for stable – effective – long term operation, the company’s charter shall be prepared and managed in tailored manner and shall not simply copy a form from internet.
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