2005

REGULATIONS OF SHANGHAI MUNICIPALITY ON PLACE-NAME ADMINISTRATION

Regulations of Shanghai Municipality on Place-Name Administration

    

CHAPTER I GENERAL PROVISIONS

CHAPTER II THE NAMING OF PLACES

CHAPTER III THE USE OF PLACE-NAMES

CHAPTER IV THE ERECTION OF LAND MARKS

CHAPTER V LEGAL LIABILITY

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 1 For the purpose of strengthening the place-name administration in this Municipality, and meeting the needs of city construction,
social development and people’s living, these Regulations are formulated in accordance with the Regulations on Place-name Administration
formulated by the State Council and other relevant laws, administrative regulations and in the light of the actual conditions of
this Municipality.

   Article 2 These Regulations shall apply to the naming, the use, the establishment of land marks and the relevant place-name administration
in the administrative areas of this Municipality.

   Article 3 Place-names in these Regulations include:

1. Names of districts, counties, townships, towns, neighborhood communities and villages;

2. Names of hills, rivers, lakes, islands, reefs, sandbanks, shoals, and waterways;

3. Names of development zones, regions, public greens, public squares, sight-seeing places, farms, and enclosed tidelands;

4. Names of residential sections, housing clusters, market towns, and natural villages;

5. Names of urban streets, bridges, tunnels, subways and other urban transit stations and lines, railway stations and lines, highways,
airports, harbors, wharves (including ferry stations), longdistance bus stations, and freight transport hubs;

6. Names of seawalls, and river banks;

7. Names of buildings and constructed structures; and

8. Numbers of houses, and lanes.

   Article 4 The Shanghai Municipal Place-name Committee and the District/County Place-name Committee under the leadership of the people’s government
at the same level, shall approve and decide important items concerning place-names, and coordinate the place-name administration
within their administrative areas.

The Shanghai Municipal Place-name Administration Office (hereinafter referred to as the Municipal Place-name Office) and the District/County
Place-name Administration Office (hereinafter referred to as the District/County Place-name Office) shall be responsible for the
place- name administration within its administrative areas and impose administrative sanctions with the authorized rights in accordance
with these Regulations. The District/County Place-name Office is under the leadership of the Municipal Place-name Office in vocational
work.

   Article 5 The Municipal Public Security Organ is the competent administrative department responsible for the administration of house and lane
numbers within the municipal areas under the leadership of the Municipal Place-name Office in vocational work. The District/County
Public Security Organ is responsible for the administration of house and lane numbers within its administrative areas under the leadership
of The Municipal Public Security Organ in vocational works.

The relevant administrative departments of this Municipality shall, within their own terms of responsibility, do a good job in the
place- name administration.

The People’s Government of Township/Town and the neighborhood community offices shall assist the Municipal Place-name Office, the
District/County Place-name Office and the public security organs to supervise and examine place-name administration within their
administrative areas.

   Article 6 Place-name administration shall respect the history and the present situation of the place names in this Municipality, keep the names
relatively stable, and standardize and normalize these names.

   Article 7 The following requirements shall be adhered to in the naming of places:

1. To defend state sovereignty, territorial integrity, national dignity and be favorable to the unity of the People;

2. To embody historical, cultural, geographic and economic features of the local places and be suited to the functions laid down
in the City Planning;

3. To have healthy implications and be in line with the social morality;

4. To forbid using names of the State leaders;

5. To use correct and standard Chinese characters and avoid using rarely used words;

6. To give one place one name, which shall match the reality of the local place and be convenient for use; and

7. To coordinate the derived names with the original ones.

   Article 8 Names of villages, market towns and rivers under the administration of townships shall not repeat or be similar in pronunciations
within the same district/county area.

Names of similar places within a farm area shall not repeat or be similar in pronunciation.

Names of other similar places shall not repeat or be similar in pronunciation in the Municipality.

   Article 9 Buildings shall have house/lane numbers arranged in accordance with street names. The numbering shall be made in order according
to regulated distance. If the distance between two adjacent buildings exceeds the regulated standard, spare house/lane numbers shall
be reserved for future use.

House/lane numbers can not be arranged at random or skip over or repeat.

   Article 10 The Municipal Civil Affairs Organ shall consult the opinions of the Municipal Place-name Office and report the names of the District/County
administrative divisions to the Municipal People’s Government. After being approved by the Municipal People’s Government, these
names shall be submitted to the State Council for examination and approval according to the relevant State regulations.

The Municipal Civil Affairs Organ shall consult the opinions of the Municipal Place-name Office and report the names of the Townships/Towns
and neighborhood communities to the Municipal People’s Government for examination and approval.

The Township/Town People’s Governments and neighborhood community offices shall report the names of villages to the District/County
Civil Affairs Organs. After consulting the opinions of the District/County Place-name Office, the District/County Civil Affairs
Organs shall submit these names to the District/County People’s Governments for examination and approval.

   Article 11 The Municipal Administrative Department of Waters shall consult the opinions of the Municipal Place-name Office and report the names
of trans-provincial, trans-urban rivers and lakes to the Municipal People’s Government. After being verified by the Municipal People’s
Government, these names shall be submitted to the State Council for examination and approval according to the relevant State regulations.

The Municipal Administrative Department of Waters shall report the names of lakes and rivers under the Municipality, Districts/Counties
to the Municipal Place-name Office. After being verified by the Municipal Place-name office, these names shall be submitted to the
Municipal People’s Government for examination and approval.

The District/County Administration Competent Department of Waters shall report the names of rivers under Townships to the District/County
Place- name Office. After being verified by the District/County Place-name office these names shall be submitted to the District/County
People’s Governments for examination and approval.

The District/County People’s Governments shall report the names of hills, islands and reefs to the Municipal Place-name Office. After
being verified by the Municipal Place-name Office, these names shall be submitted to the Municipal People’s Government for examination
and approval.

The Municipal Administrative Department of Traffic Control or the Municipal Administrative Department of Waters shall report the names
of waterways, sandbanks, shoals to the Municipal Place-name Office. After being verified by the Municipal Place-name Office, these
names shall be submitted to the Municipal People’s Government for examination and approval.

   Article 12 The competent departments of the development zones shall, after consulting the opinions of the Municipal Place-name Office, submit
the names of the Municipal Development Zones to the Municipal People’s Government for examination and approval.

The competent departments of the development zones shall report the names of District/County Development Zones to the District/County
Place- name Office. After being verified by the District/County Place-name Office, these names shall be submitted to the District/County
People’s Governments for examination and approval.

The Municipal Competent Department of Farms shall report the names of farms to the Municipal Place-name Office. After being verified
by the Municipal Place-name Office, these names shall be submitted to the Municipal People’s Government for examination and approval.

The competent units of enclosing tideland shall report the names of the enclosed tidelands to the District/County Place-name Office.
After being verified by the District/County Place-name Office, these names shall be submitted to the District/County People’s Governments
for examination and approval.

The competent departments shall report the names of the Municipal public green spaces, the public squares and the sight-seeing places
to the Municipal Place-name Office for examination and approval. The competent departments shall report the names of the district/county
public green spaces, the public squares and the sight-seeing places to the District/County Place-name Office for examination and
approval.

   Article 13 The construction units shall report the names of the residential sections to the District/County Place-name Office. After being
verified by the District/County Place-name Office, these names shall be submitted to the “Municipal Place-name Office” for examination
and approval.

The neighborhood community offices or the Township/Town People’s Governments shall report the names of the housing clusters and market
towns to the Municipal Place-name Office for examination and approval.

   Article 14 The Municipal Civil Engineering Competent Department shall report the names of the city roads above main highways and their bridges
to the Municipal Place-name Office. After being verified by the Municipal Place-name Office, these names shall be submitted to the
Municipal People’s Government for examination and approval.

The competent departments shall report the names of city roads below main highways and their bridges to the District/County Place-name
Office. After being verified by the District/County Place-name Office, these names shall be submitted to the Municipal Place-name
Office for examination and approval. And the Municipal Civil Engineering Department shall report the names of the transdistrict/county
roads to the Municipal Place-name Office for examination and approval.

The competent departments shall report the names of the bridges not mentioned in Section 1 and Section 2 of this Article to the place-name
office at the same level. After being verified by the Municipal Place- name Office or the District/County Place-name Office, these
names shall be submitted to the governments at the same level for examination and approval.

The competent departments shall report the names of the tunnels, subways and urban transit stations and lines to the Municipal Place-name
Office. After being verified by the Municipal Place-name Office, these names shall be submitted to the Municipal People’s Government
for examination and approval.

The Municipal Administrative Department of Traffic Control shall report the names of the harbors (including ferry stations) along
the municipal rivers to the Municipal Place-name Office for examination and approval. The District/County Administrative Departments
of Traffic Control shall report the names of the harbors (including ferry stations) along the District/County rivers to the District/County
Place-name Office for examination and approval.

The competent departments shall report the names of the long-distance bus stations, freight transport hubs to the Municipal Place-name
Office for examination and approval.

   Article 15 The railway administrative departments shall, after consulting the opinions of the Municipal Place-name Office, report the names
of the railway station and lines to the Railway Administrative Department of the State Council for examination and approval according
to the relevant State regulations.

The civil aviation administrative departments shall, after consulting the opinions of the Municipal Place-name Office and being examined
and approved by the Municipal People’s Government, report the names of the airports to the Civil Aviation Administrative Department
of the State Council for examination and approval according to the relevant State regulations.

The Municipal Administrative Department of Traffic Control shall, after consulting the opinions of the Municipal Place-name Office,
report the names of the harbors to the Municipal People’s Government for examination and approval.

   Article 16 The Municipal Administrative Department of Engineering Projects shall, after consulting the opinions of the Municipal Place- name
Office, report the names of the trans-provincial or trans-urban roads to the Municipal People’s Government for examination and approval.
After being verified, these names shall be legally submitted to the Administrative Department of Traffic Control of the State Council
for examination and approval.

The Municipal Administrative Department of Engineering Projects shall, after consulting the opinions of the Municipal Place-name Office,
decide the names of the roads above county level but not mentioned in the previous Section.

The District/County Administrative Department of Engineering Projects shall, after consulting the opinions of the District/County
Place-name Office, decide the names of the roads at Township/Town level. The relevant District/County Administrative Departments
of Engineering Projects shall report the names of the trans-district/county roads to the Municipal Administrative Department of Engineering
Projects. After consulting the opinions of the Municipal Place-name Office, the Municipal Administrative Department of Engineering
Projects shall decide these names.

   Article 17 The Municipal Administration Department of Waters shall report the names of seawalls, and river banks to the Municipal Place- name
Office for examination and approval.

   Article 18 If a building or a constructed structure needs a name, the property right possessors shall submit the name to the District/County
Place-name Office for examination and approval.

   Article 19 The construction units or the property right possessors shall apply to the detached offices of the Municipal Public Security Organ
for the house and lane number. After arranging the numbers, the detached offices of the Municipal Public Security Organ shall report
these numbers to the District/County Public Security Organs for examination and approval. The District/County Public Security Organs
shall report the house and lane numbers of the buildings on both sides of a transdistrict/county urban street or highway to the Municipal
Public Security Organ for examination and approval.

   Article 20 Place-names may be altered in one of the following cases:

1. Due to the adjustment of the district divisions, the names of Districts, Counties, Townships, Towns, neighborhood communities
and villages need to be altered;

2. Due to the change in the trend of a road, the road names need to be altered;

3. Due to the application of a property right possessor, the name of a building or a constructed structure needs to be altered;

4. Due to the change in the name or the type of a road, or the change in the extension of a road, the house and lane numbers need
to be altered; or

5. Names need to be altered with the approval of the Municipal People’s Government or the State Council or any departments concerned.

The Municipal Place-name Office or the District/County Place-name Office shall issue a notice for the alteration of names which are
not in line with the prescriptions of Item 1, 3 and 4 of Article 7. The relevant unit or individual person shall go through formalities
of name alteration within 3 months from the date when the notice is received.

The Examination and approval process for the application of name alteration shall be in line with the prescribed process of this Chapter,
and the construction unit of a road or the District/County Administrative Competent Department of Construction shall apply to the
District/County Administrative Department of Construction for the alteration of house or lane numbers.

   Article 21 The District/County Place-name Office shall report to the Municipal Place-name Office the disappeared names due to natural changes
for their cancellation. The competent departments or the construction units shall report to the District/County Place-name Office
the disappeared names due to the adjustment of district divisions or the city construction for their cancellation. The District/County
Place-name Office shall report to the Municipal Place-name Office these canceled names for the record.

Generally, the canceled names shall not be used in new places of the same kind.

   Article 22 The party applying for new place names, name alterations and name cancellations shall fill in the application form accurately together
with the relevant certificates and materials, false and untrue

   Article 23 The party applying for the names mentioned in Item 5 of Article 3 shall go through the process of place-name application before applying
for the Permit for Planning of Construction Project.

   Article 24 Departments in charge of place-name administration in this Municipality shall make their decisions on the examination and approval
within 30 days from the date when the application is received. The Municipal People’s Government shall make its decision on the
examination and approval within 60 days from the date when the application is received, and a failure to make its decision within
the given period of time shall be deemed as consent.

The Municipal Public Security Organ or the District/County Public Security Organs shall make their decisions on the examination and
approval within 30 days from the date when the application for house and lane number is received,

The department in charge of place-name administration in this Municipality shall copy the examined and approved documents to the Municipal
Place-name Office for the record within 15 days from the date when the examination and approval procedure starts.

   Article 25 Place-names having been used before the implementation of these Regulations and having been compiled into a geographical gazetteer
by the Municipal Place-name Office shall be deemed as the approved names by these Regulations.

CHAPTER III THE USE OF PLACE-NAMES

   Article 26 The place-names that have been legally approved, altered or canceled except house and lane numbers shall be published to the public
in newspapers within 3 months from the date when the Municipal Place- name Office or the District/County Place-name Office approves
or cancels the place-names, and the applicants shall bear the expenses for the publication.

   Article 27 Place-names shall be written in standard Chinese characters published by the State Administration of Language and Writing System,
and the house and lane numbers shall be written in Arabic numerals at the same time.

The Roman alphabet spelling of place-names shall be in conformity with the Scheme of the Chinese Phonetic Alphabet and the Regulations
of the Chinese Phonetic Alphabet Spelling of Place-names published by the State.

   Article 28 Announcements, documents, certificates, maps, geographic textbooks, place-names records, place-name dictionaries, and real estate
advertisements must use the legally approved names with the exception of the names used in history.

   Article 29 The following administrative departments shall check the approved documents for the names of buildings or constructed structures
when they examine and approve the relevant certificates, and shall not handle the regulated procedure without approved documents:

1. The planning administrative departments in the examination and approval of the permit for construction project planning;

2. The real estate administrative departments in the examination and approval of the permit of the advance sale of commercial houses;
and

3. The housing construction administrative departments in the examination and approval of the permit for the delivery of newly built
houses.

   Article 30 The Municipal and District/County Place-name Offices shall set up a place-name data administration system, and keep them intact for
inquiring service.

CHAPTER IV THE ERECTION OF LAND MARKS

   Article 31 Land marks shall be erected in the following cases:

1. Place-names listed in Item 5 of Article 3;

2. Names of residential sections;

3. Names of market towns; and 4. House and lane numbers.

Land marks shall be erected for the places not mentioned in the previous Section in line with the actual needs and the environment
conditions.

   Article 32 The party that erects land marks shall be determined according to the following regulations:

1. The construction units or the competent departments concerned shall be the parties that erect marks for place names listed in
Item 5 of Article 3;

2. The construction units or the neighborhood community offices concerned shall be the parties that erect marks for residential section
names;

3. The Township/Town People’s Governments shall be the parties that erect marks for market town names;

4. The construction units or the property right possessors shall be the parties that erect plates for house and lane numbers. The
road construction units or the Municipal People’s Government or the District/County People’s Governments shall be the parties that
erect the replaced house and lane number due to the changes in the trend, the type or the extension of a road.

   Article 33 Place-name marks shall be erected at the assigned spots in the following cases:

1. Marks of a residential section shall be erected at the joint access of the residential section to the main city roads or highways;

2. Marks of a market town shall be erected at the borders of the town where the main city roads or highways pass by;

3. Signposts of a road shall be erected at the starting and the terminal points and the crossroads of a city road or a highway, and
an additional signpost shall be erected in between if the distance between the two crossroads is too far away.

Signposts not mentioned in the previous Section shall be erected at the proper and obvious spots in line with the actual needs and
the environment conditions.

   Article 34 Signposts listed in Item 5 and 8 of Article 3 shall be erected before the construction projects are delivered for use.

Signposts of a residential section shall be erected before all the construction projects required by the planning are completed.

If the place-name listed in Item 5 and 8 of Article 3 are altered, the party that erects the signposts shall change the place-name
signposts within 3 months from the date when the approved document is received.

   Article 35 The party that erects signposts shall use the uniformly designed road signposts and house or lane numbers.

Signposts on highways shall be made in accordance with the model designed by the State.

Signpost models of the city roads and streets shall be decided by the Municipal Administrative Competent Department of Engineering
Projects together with the Municipal Place-name Office.

House or lane number models of this Municipality shall be decided by the Municipal Public Security Organ together with the Municipal
Place-name Office.

   Article 36 The party that erects signposts shall keep the signposts distinct and intact, any signposts damaged or with words lost shall be replaced
whenever they are found.

   Article 37 Any units or individual persons shall be obliged to protect the signposts, and the following actions are prohibited:

1. Alter or stain the signposts;

2. Shelter or cover the signposts;

3. Move or demolish the signposts without any authorization; or

4. Any other actions damage the signposts;

Whenever a signpost needs to be moved or demolished, the party concerned shall consult with the party that erects the signpost. After
the competent department or the District/County Place-name Office approves and consents to bear the relevant compensations, the signpost
may be moved or demolished.

   Article 38 Violations of the provisions of these Regulations shall be disposed of according to the following regulations:

1. Any unauthorized naming or charging of place-names except house or lane numbers, or applying with false information, must be corrected
under the orders of the Municipal or the District/County Place-name Office before a fixed date. And any unauthorized naming or changing
of the names of development zones, buildings and constructed structures or applying with false information shall be imposed a fine
of 3,000 to 30,000 yuan if the correction is not made until the prescribed time limit.

2. Any unauthorized decisions or changes of house or lane numbers shall be corrected under the orders of the Municipal or District/County
Public Security Organ before a fixed date. If the correction is not made until the prescribed time limit, a fine of 300 to 3,000
yuan shall be imposed.

3. Any unauthorized moving or demolishing of house or lane numbers, any harmful influence over their use or any damages to house or
lane numbers shall be corrected under the orders of the Municipal or District/County Public Security Organ before a fixed date. If
the correction is not made until the prescribed time limit, a disciplinary warning or a fine not more than 50 yuan shall be imposed.
In case economical loses are caused, the party concerned shall make compensations according to law.

4. Any unauthorized moving or demolishing of signpost except house or lane numbers, any harmful influences over their use or damages
to the signposts shall be corrected under the orders of the Municipal or District/County Place-name Office before a fixed date. If
the correction is not made until the prescribed time limit, a disciplinary warning or a fine not more than 500 yuan shall be imposed.
In case economical loses are caused, the party concerned shall make compensations according to law.

5. If a party fails to go through the formalities of altering the names of buildings or constructed structures, which are supposed
to be altered, within the prescribed time limit, the Municipal or the District/County Place-name Office shall impose a disciplinary
warning or a fine of 300 to 3,000 yuan; or

6. Any violations of Article 27, Article 33, Article 34, Section 1 of Article 35, and Article 36, the Municipal or District/County
Place-name Office shall order the party concerned to make a correction within a time limit. If the correction is not made until
the prescribed time limit, the Municipal or the District/County Place-name Office may make the correction in the violator’s name
instead, but the party that erects the signposts shall bear all the corresponding expenses.

   Article 39 If any unit, in violation of these Regulations, exceeds or illegally examines and approves place-name applications, its superior
competent department shall order it to make a correction or cancel the approval. In case economical loses are caused, the unit concerned
shall make compensations according to law.

   Article 40 If the staff members of the department of place-name administration and the department of examination and approval neglect their
duties, abuse their powers or malpractice for personal gains, the departments they work in or the superior competent department shall
impose on them disciplinary sanctions. Those whose act constitutes a crime shall be prosecuted for their criminal liability according
to law.

   Article 41 If the party concerned refuses to obey the administrative act of the department of place-name administration and the department of
examination and approval, he or she may apply for reconsideration or bring an administrative action in the local people’s court in
accordance with the Regulations on Administrative Review and the Administrative Litigation Law of the People’s Republic of China.
If the party concerned refuses to obey the administrative act of the Municipal or the District/County Place-name Office, he or she
may apply to the Municipal or District/County People’s Government for review.

If the party concerned neither applies for review, nor institutes an action at law and fails to perform the administrative decision
within the legal time limit, the Municipal or District/County Place-name Office, the Municipal or District/County Public Security
Organ that has made the administrative decision may, in accordance with the Administrative Litigation Law of the People’s Republic
of China, apply to the people’s court for enforcement.

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 42 The following terms as used in these Regulations are defined as the following:

1. The term “waterway” refers to the channels at Yangtse Estuary for navigation of ships and boats, such as Wusongkou Waterway, Baoshan
Waterway, Xinqiao Waterway, etc.;

2. The term “region” refers to a certain area with no clear and definite boundary, such as the Bund, Caojiadu, Dapuqiao, etc.;

3. The term “housing cluster” refers to an area which has evolved from an original village but now has a certain limits, and all
the house plates are arranged under the same name, such as Kangjiaqiao in Jingan District, and the East Village of Lujiazhai in Putuo
District, etc..

   Article 43. These Regulations shall become effective on January 1, 1999.

    






SPECIAL MARITIME PROCEDURE LAW OF THE PEOPLE’S REPUBLIC OF CHINA






The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.28

The Special Maritime Procedure Law of the People’s Republic of China which has been adopted at the 13th Meeting of the Standing Committee
of the Ninth National People’s Congress on December 25, 1999 is promulgated now, and shall enter into force as of July 1, 2000.

President of the People’s Republic of China: Jiang Zemin

December 25, 1999

Special Maritime Procedure Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Jurisdiction

Chapter III Maritime Claims Preservation

Section 1 General Principles

Section 2 Arresting or Auction Sale of Ships

Section 3 Arrest and Auction of the Goods on Board

Chapter IV Maritime Injunction

Chapter V Maritime Evidence Preservation

Chapter VI Maritime Guarantee

Chapter VII Service

Chapter VIII Trial Procedures

Section 1 Provisions on Trying Cases Involving Collision of Ships

Section 2 Provisions on Trying Cases Involving General Average

Section 3 Provision on Exercising the Right to Indemnity by Subrogation

by a Maritime Insurer

Section 4 Summary Procedures, Procedures for Hastening Debt Recovery

and Procedures for Publicizing Public Notice for Assertion

of Claims

Chapter IX Procedures for Constituting a Limitation Fund for Maritime Claims Liability

Chapter X Procedures for Registering Creditors’ Rights and Repayment of Debt

Chapter XI Procedures for Publicizing Notice for Assertion of Maritime Liens

Chapter XII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purposes of maintaining the litigation rights, ensuring the ascertaining of facts by the people’s courts,
distinguishing right from wrong, applying the law correctly, trying maritime cases promptly.

Article 2

Whoever engages in maritime litigation within the territory of the People’s Republic of China shall apply the Civil Procedure Law
of the People’s Republic of China and this Law. Where otherwise provided for by this Law, such provisions shall prevail.

Article 3

If an international treaty concluded or acceded to by the People’s Republic of China contains provisions that differ from provisions
of the Civil Procedure Law of the People’s Republic of China and this Law in respect of foreign-related maritime procedures, the
provisions of the international treaty shall apply, except those on which China has made reservations.

Article 4

The maritime court shall entertain the lawsuits filed in respect of a maritime tortious dispute, maritime contract dispute and other
maritime disputes brought by the parties as provided for by laws.

Article 5

In dealing with maritime litigation, the maritime courts, the high people’s courts where such courts are located and the Supreme People’s
Court shall apply the provisions of this Law.

Chapter II Jurisdiction

Article 6

Maritime territorial jurisdiction shall be conducted in accordance with the relevant provisions of the Civil Procedure Law of the
People’s Republic of China.

The maritime territorial jurisdiction below shall be conducted in accordance with the following provisions:

(1)

A lawsuit brought on maritime tortious may be, in addition to the provisions of Articles 19 to 31 of the Civil Procedure Law of the
People’s Republic of China, under jurisdiction of the maritime court of the place of its port of registry;

(2)

A lawsuit brought on maritime transportation contract may be, in addition to the provisions of Articles 82 of the Civil Procedure
Law of the People’s Republic of China, under jurisdiction of the maritime court of the place of its port of re-transportation;

(3)

A lawsuit brought on maritime charter parties may be under jurisdiction of the maritime court of the place of its port of ship delivery,
port of ship return, port of ship registry, port where the defendant has its domicile;

(4)

A lawsuit brought on a maritime protection and indemnity contract may be under jurisdiction of the maritime court of the place where
the object of the action is located, the place where the accident occurred or the place where the defendant has its domicile;

(5)

A lawsuit brought on a maritime contract of employment of crew may be under jurisdiction of the maritime court of the place where
the plaintiff has its domicile, the place where the contract is signed, the place of the port where the crew is abroad or the port
where the crew leaves the ship or the place where the defendant has its domicile;

(6)

A lawsuit brought on a maritime guaranty may be under jurisdiction of the maritime court of the place where the property mortgaged
is located or the place where the defendant has its domicile; a lawsuit brought on a ship mortgage may also be under jurisdiction
of the maritime court in the place of registry port;

(7)

a lawsuit brought on ownership, procession, and use, maritime liens of a ship, may be under jurisdiction of the maritime court of
the place where the ship is located, the place of ship registry or the place where the defendant has its domicile.

Article 7

The following maritime litigation shall be under the exclusive jurisdiction of the maritime courts specified in this Article:

(1)

A lawsuit brought on a dispute over harbour operations shall be under the jurisdiction of the maritime court of the place where the
harbour is located;

(2)

A lawsuit brought on a dispute over pollution damage for a ship’s discharge, omission or dumping of oil or other harmful substances,
or maritime production, operations, ship scrapping, repairing operations shall be under the jurisdiction of the maritime court of
the place where oil pollution occurred, where injury result occurred or where preventive measures were taken;

(3)

A lawsuit brought on a dispute over a performance of a maritime exploration and development contract within the territory of the People’s
Republic of China and the sea areas under its jurisdiction shall be under the jurisdiction of the maritime court of the place where
the contract is performed.

Article 8

Where the parties to a maritime dispute are foreign nationals, stateless persons, foreign enterprises or organizations and the parties,
through written agreement, choose the maritime court of the People’s Republic of China to exercise jurisdiction, even if the place
which has practical connections with the dispute is not within the territory of the People’s Republic of China, the maritime court
of the People’s Republic of China shall also have jurisdiction over the dispute.

Article 9

An application for determining a maritime property as ownerless shall be filed by the parties with the maritime court of the place
where the property is located; an application for declaring a person as dead due to a maritime accident shall be filed with the maritime
court of the place where the competent organ responsible for handling with the accident or the maritime court that accepts the relevant
maritime cases.

Article 10

In the event of a jurisdictional dispute between a maritime court and a people’s court, it shall be resolved by the disputing parties
through consultation; if the dispute cannot be so resolved, it shall be reported to their common superior people’s court for the
designation of jurisdiction.

Article 11

When the parties apply for enforcement of maritime arbitral award, apply for recognition and enforcement of a judgement or written
order of a foreign court and foreign maritime arbitral award, an application shall be filed with the maritime court of the place
where the property subjected to execution or of the place where the person subjected to execution has its domicile. In case of no
maritime court in the place where the property subjected to execution or in the place where the person subjected to execution has
its domicile, an application shall be filed with the intermediate people’s court of the place where the property subjected to execution
or of the place where the person subjected to execution has its domicile.

Chapter III Maritime Claims Preservation

Section 1 General Principles

Article 12

Maritime claims mean maritime courts, according to applications of maritime claimants, take compulsory preservation measures against
property of persons against whom the claims are brought up in order to ensure the realization of such rights.

Article 13

An application for maritime claims by the parties shall, before bring a lawsuit, be filed with the maritime court of the place where
the property subjected to preservation.

Article 14

Maritime claims shall not be bound by procedure jurisdiction agreements or arbitration agreements relating to the said maritime claims
between the parties.

Article 15

Where maritime claimants apply for maritime claims, written applications shall be filed with maritime courts. Maritime claims, application
reasons, objects subjected to preservation and amounts for guaranty shall be stated in applications.

Article 16

A maritime court may, in accepting a maritime preservation application, order the claimant to provide a guaranty. Where the claimant
fails to provide guaranty, his application shall be rejected.

Article 17

After receiving an application, the maritime court must make an order within 48 hours; if the court orders the adoption of maritime
preservation measures, the execution thereof shall begin immediately. Where not conforming to the conditions for a maritime preservation,
the application shall be rejected.

If the party concerned is not satisfied with the order, he may, within five days from the date of the receipt of the order, apply
for reconsideration which could be granted only once. The maritime court shall make a reconsideration decision within five days from
the date of the receipt of the reconsideration application. Execution of the order shall not be suspended during the time of reconsideration.

Where the interested party raises objection to the maritime preservation, the maritime court, upon examination and deeming it reasonable,
shall cancel the property preservation.

Article 18

If the person against whom the application for maritime preservation is made provides guaranty, or the party has justified reasons
for applying cancellation of maritime reservation, the people’s court shall cancel the property reservation promptly.

If the maritime claimant fails to bring an action or apply for arbitration according to the arbitration agreement within the time
limit specified by this Law, the people’s court shall cancel the property reservation or return the guaranty promptly.

Article 19

Where the relevant maritime dispute enters into litigation or arbitration procedure after execution of the maritime preservation,
the party may bring an action relating to the maritime claim to the maritime court which has taken maritime claim preservation or
other maritime courts having jurisdiction over it, with the exception of signing of a litigation jurisdiction agreement or an arbitration
agreement between the parties.

Article 20

If an application for maritime preservation is wrongfully made by a maritime claimant, the claimant shall compensate the person against
whom the application is made for any loss incurred from maritime preservation.

Section 2 Arresting or Auction Sale of Ships

Article 21

The following maritime claims may applied for arresting ships:

(1)

the destruction of or damage to the property occurred in the operation of the ship;

(2)

the loss of life or personal injury directly relating to the operation of the ship;

(3)

salvage payment;

(4)

the damage or threat of damage caused by the ship to the environment, seashore or the relevant interested parties; the measures taken
for prevention, reduction and elimination of such damage; payment for compensation of such damage; the reasonable cost for the measures
taken actually or preparing to take for restoring the environment; loses the third party suffered or will probably suffer due to
such damage; and the damage, fees or loses which are similar in nature specified in this Item;

(5)

fees relating to floating, elimination, recycling and destruction of sunken ships, shipwreck, stranded objects, abandoned ships or
making them harmless, including fees relating to floating, elimination, recycling and destruction of the objects which still are
or were abroad such ships or making them harmless, and fees relating to maintenance of abandoned ships and suppurating the crew members;

(6)

the agreement or use or charter parties of the ship;

(7)

an agreement for carriage of goods or passengers;

(8)

goods (including luggage) on board or loss or damage related thereto;

(9)

general average;

(10)

towage service;

(11)

pilotage service;

(12)

provision of materials or services for operation, management, maintenance and repair of ships;

(13)

ship building, rebuilding, repair, refitting or fitting;

(14)

prescribed fees or fees for ports, canals, wharves, harbors or other waterways;

(15)

wages of ship’s crew or other payments, including the repatriation fee and social insurance premium payable for ship’s crew;

(16)

expenses paid for a ship or shipowner;

(17)

ship’s insurance premium (including mutual insurance membership fee) paid by a shipowner or bareboat charterer, or paid on his behalf;

(18)

the commission, brokerage or agency fee related to a ship paid by the shipowner or bareboat charterer, or paid on his behalf;

(19)

a dispute over ownership or possession of a ship;

(20)

a dispute over use of or profit from a ship between co-owners of the ship;

(21)

a mortgage of a ship or right of the same nature; or

(22)

a dispute arising from a contract for sale of a ship.

Article 22

No application for arrest of a ship may be filed except for the maritime claims as stipulated in Article 21 of this Law; there are
exceptions, however, for executing judgments, arbitral awards or other legal documents.

Article 23

If any of the following circumstances exists, a maritime court may arrest the involved ship:

(1)

where the shipowner is held responsible for a maritime claim and is the owner of the ship when the arrest is executed;

(2)

where the bareboat charterer of the ship is held responsible for a maritime claim and is the bareboat charterer or the owner of the
ship when the arrest is executed;

(3)

where a maritime claim is enpost_titled to a mortgage of the ship or right of the same nature;

(4)

where a maritime claim relates to ownership or possession of the ship; or

(5)

where a maritime claim is enpost_titled to a maritime lien.

A maritime court may arrest other ships owned by the shipowner, bareboat charterer, time charterer or voyage charterer who is held
responsible for a maritime claim, when the arrest is executed, with the exception of the claims related to ownership or possession
of the ship.

No ship engaging in military or government duties may be arrested.

Article 24

A maritime claimant may not apply to arrest a ship having been arrested for the same maritime claim, except that any of the following
circumstances exists:

(1)

where the party who opposes the claim has not provided a sure guarantee;

(2)

where the guarantor probably cannot perform his obligation of guarantee wholly or partly; or

(3)

where the maritime claimant agrees to release the arrested ship or return the existing guarantee for justifiable reason; or cannot
stop the release of the arrested ship or return of the existing guarantee by justifiable means.

Article 25

For a maritime claimant applying to arrest the involved ship, if the name of the party who opposes the claim cannot be ascertained
at once, the filing of his application shall not be affected.

Article 26

A maritime court may issue the relevant departments with a notice for assistance in execution at the same time it issues or cancels
an order for arrest of a ship, and the notice shall clearly set forth the scope and content of the assistance in execution and the
relevant departments have the obligation to assist in execution. A maritime may directly dispatch personnel to board the ship for
supervision if it deems necessary.

Article 27

After a maritime court orders to impose preservation upon a ship, with consent of the maritime claimant, it may allow the ship to
continue the operation by ways of restraining the disposition or mortgage of the ship.

Article 28

The period of arresting a ship for maritime claim preservation shall be 30 days.

If a maritime claimant brings a law suit or applies for arbitration within 30 days, and applies for arrest of a ship in the course
of the litigation or arbitration, the arrest of the ship shall not be restrained by the period stipulated in the preceding paragraph.

Article 29

If, on the expiration of the period of arresting a ship, the party who opposes the claim fails to provide guarantee, and the ship
is not suitable for being arrested longer, the maritime claimant may apply to the maritime court arresting the ship for auction of
the ship after bringing a law suit or applying for arbitration.

Article 30

A maritime court shall conduct examination after receiving the application for auction of a ship, and make an order approving or disapproving
the auction of the ship.

If a party is not satisfied with the order, he may apply for reconsideration once within five days of the date of receiving the written
order. The maritime court shall make a reconsideration decision within five days of receiving the reconsideration application. Execution
of the order shall be suspended during the time of reconsideration.

Article 31

Where a maritime claimant, after filing an application for auction of a ship, applies for stopping the auction, whether or not to
give a permission shall be ordered by the maritime court. If the maritime court orders to stop the auction of the ship, expenses
incurred for auctioning the ship shall be paid by the maritime claimant.

Article 32

A maritime court that orders to auction a ship shall issue a public notice through newspapers or other new media. If a foreign ship
is to be auctioned, a public notice shall be issued through newspapers or other news media distributed abroad.

A public notice shall contain the following particulars:

(1)

name and nationality of the ship to be auctioned;

(2)

causes and basis for auction of the ship;

(3)

composition of the ship auction committee;

(4)

time and place for auction of the ship;

(5)

time and place for display of the ship to be auctioned;

(6)

procedure to be undergone for participating in the bidding;

(7)

registered items to be handled for claims; and

(8)

other particulars as required to be publicized.

The period of a public notice for auction of a ship shall not less than 30 days.

Article 33

A maritime court, 30 days prior to auction of the ship, shall issue notices to the registration authorities of the country of registry
of the ship to be auctioned, and to the known lienor, mortgagee and owner of the ship.

The contents of the notice contain the name of the ship to be auctioned, time and place for auction of the ship, causes and basis
for auction of the ship, and registration of claims.

The notice shall be in writing or take other appropriate forms by which receipt can be confirmed.

Article 34

Auction of a ship shall be executed by a ship auction committee. The ship auction committee shall be composed of three or five persons,
that is, execution officers appointed, as well as auctioneers and surveyors engaged by the maritime court.

The ship auction committee organizes appraisal and valuation of the ship; organizes and presides over the auction; signs a letter
of confirmation for conclusion of the auction with the bidder; and handles procedures for the transfer of the ship.

The ship auction committee shall be responsible to the maritime court and subject to supervision of the maritime court.

Article 35

Bidders shall register with the ship auction committee within a prescribed time limit. For registration, they shall submit for inspection
the identity certificates of themselves, enterprises’ legal representatives, or persons-in-charge of other organizations, as well
as powers of attorney of agents, and pay a certain amount of bonds for purchase of the ship.

Article 36

A ship auction committee shall display the ship to be auctioned before the auction of the ship, and shall provide facilities for inspecting
the ship to be auctioned and relevant data.

Article 37

The vendee shall pay without delay not less than 20 percent of the ship’s price after he signs a letter of confirmation, and the remainder
of the ship’s price shall be settled within seven days of the date of concluding the auction, however, except otherwise agreed upon
between the ship auction committee and the vendee.

Article 38

Once the vendee has settled the price in full, the original shipowner shall delivery the ship to the vendee on the basis of the current
condition of the ship, at the place of berth of the ship, within a fixed time limit. The ship auction committee shall organize and
supervise the delivery of the ship, and sign a letter of confirmation of ship’s delivery with the vendee after the delivery of the
ship.

After the delivery of the ship is finished, the maritime court shall issue an order releasing the arrest of the ship.

Article 39

After the delivery of the ship, the maritime court shall issue a public notice through newspapers or other news media, announcing
that the ship has been auctioned openly and delivered to the vendee.

Article 40

After accepting the ship, the vendee shall undergo formalities for registration of the ship’s ownership at the ship registration authorities
on the basis of the letter of confirmation for conclusion of auction and relevant data. The original shipowner shall undergo formalities
for cancellation of registration of the ship’s ownership at the original ship registration authorities. Failure to undergo formalities
for cancellation of registration of the ship’s ownership by the original shipowner shall not affect the transfer of the ship’s ownership.

Article 41

Malicious collusion between bidders makes the auction invalid. Any bidder involved in malicious collusion shall pay expenses for auctioning
the ship and compensate losses incurred. The maritime court may impose upon the bidder involved in malicious collusion a fine of
not more than ten percent and not less than 30 percent of the highest price offered.

Article 42

In addition to the provisions in this Section, auction shall be governed by the relevant provisions of the Auction Law of the People’s
Republic of China.

Article 43

Auction of an arrested ship for debt payment during the procedure of execution may be referred to the relevant provisions of this
Section.

Section 3 Arrest and Auction of the Goods on Board

Article 44

A maritime claimant may apply to arrest the goods on board for ensuring the fulfillment of his maritime claim.

The goods on board to be arrested on application shall be under ownership of the party who opposes the claim.

Article 45

The value of the goods on board to be arrested on application by a maritime claimant shall be equivalent to the amount of his claim.

Article 46

The period of arresting the goods on board for maritime claim preservation shall be 30 days.

If a maritime claimant brings a law suit or applies for arbitration within 15 days, and applies for arrest of the goods on board in
the course of the litigation or arbitration, the arrest of the goods on board shall not be restrained by the period stipulated in
the preceding paragraph.

Article 47

If, on the expiration of the period of arresting the goods on board, the party who opposes the claim fails to provide guarantee, and
the goods are not suitable for being arrested longer, the maritime claimant may apply to the maritime court arresting the goods on
board for auction of the goods after bringing a law suit or applying for arbitration.

For articles which cannot be stored, or are difficult to be stored, or the storage expense may exceed their value, the maritime claimant
may apply for auction in advance.

Article 48

A maritime court shall conduct examination after receiving the application for auction of the goods on board, and make an order approving
or disapproving the auction of the goods on board.

If a party is not satisfied with the order, he may apply for reconsideration once within five days of the date of receiving the written
order. The maritime court shall make a reconsideration decision within five days of receiving the reconsideration application. Execution
of the order shall be suspended during the time of reconsideration.

Article 49

Auction of the goods on board shall be executed by an auction organization composed of execution officers appointed, and auctioneers
engaged by the maritime court, or executed by an agency authorized by the maritime court.

Auction of the goods on board, if not covered by the provisions of this Section, shall be referred to the relevant provisions of Section
2 of this Chapter on auction of a ship.

Article 50

Application by a maritime claimant for maritime claim preservation imposed upon fuel and materials used by a ship related to the maritime
claim shall be governed by the provisions of this Section.

Chapter IV Maritime Injunction

Article 51

A maritime injunction means any of compulsory measures by which a maritime court, on application by a maritime claimant, orders an
act or omission by the party who opposes the claim, in order to protect the lawful rights and interests of the maritime claimant
against any infringement.

Article 52

An interested party applying for a maritime injunction before bringing a law suit shall refer to the maritime court at the place where
the maritime dispute occurred.

Article 53

A maritime injunction shall not be restrained by a jurisdiction agreement or an arbitration agreement relating to the maritime claim
as agreed upon between the parties.

Article 54

A maritime claimant applying for a maritime injunction shall submit a written application to a maritime court. The application shall
clearly set forth causes for application with relevant evidence attached thereto.

Article 55

A maritime court accepting an application for a maritime injunction may order the maritime claimant to provide guarantee. If the maritime
claimant fails to provide guarantee, the application shall be rejected.

Article 56

To make a maritime injunction, the following conditions shall be fulfilled:

(1)

The claimant has a specific maritime claim;

(2)

There is a need to rectify an act committed by the party who opposes the claim, in violation of the provisions of the law or the stipulations
of a contract; and

(3)

In case of emergency, failure to make a maritime injunction immediately will cause damage or expand damage.

Article 57

After accepting the application, a maritime court shall make an order within 48 hours. If an order is made for making a maritime injunction,
it shall be executed immediately; if the conditions for a maritime injunction are not fulfilled, an order shall be made to reject
the application.

Article 58

If a party is not satisfied with the order, he may apply for reconsideration once within five days of the date of receiving the written
order. The maritime court shall make a reconsideration decision within five days of receiving the reconsideration application. Execution
of the order shall not be suspended during the time of reconsideration.

If an interested party lodges an objection to a maritime injunction, the maritime court shall order to cancel the maritime injunction
if it deems the causes are tenable through investigation.

Article 59

If the party who opposes the claim refuses to obey a maritime injunction, the maritime court may impose a fine or detain him in accordance
with the seriousness of the circumstances; if a crime has been constituted, criminal liability shall be investigated according to
the law.

A fine on an individual shall not be less than 1,000 yuan and not more than 30,000 yuan . A fine on a unit shall not be less than
30,000 yuan and not more than 100,000 yuan.

The period of detention shall not be longer than 15 days.

Article 60

A maritime claimant wrongfully submitting an application for a maritime injunction shall compensate losses incurred by the party who
opposes the claim or an interested party.

Article 61

If no litigation or arbitration procedures start for relevant maritime disputes after the execution of the maritime injunction, the
parties may bring a law suit for this maritime claim to the maritime court making the maritime injunction or the other maritime court
having jurisdiction, except that a jurisdiction agreement or an arbitration agreement has been concluded between the parties.

Chapter V Maritime Evidence Preservation

Article 62

Maritime evidence preservation means any of compulsory measures by which a maritime court obtains, retains or seals up evidence related
to the maritime claim on application by the maritime claimant.

Article 63

An interested party applying for maritime evidence preservation before bringing a law suit shall refer to the maritime court at the
place where the evidence to be preserved is located.

Article 64

Maritime evidence preservation shall not be restrained by a jurisdiction agreement or an arbitration agreement relating to the maritime
claim as agreed upon between the parties.

Article 65

A maritime claimant applying for maritime evidence preservation shall submit a written application to a maritime court. The application
shall clearly set forth the evidence to be preserved on application, the relation between the evidence and the maritime claim and
causes for application.

Article 66

A maritime court accepting an application for maritime evidence preservation may order the maritime claimant to provide guarantee.
If the maritime claimant fails to provide guarantee, the application shall be rejected.

Article 67

To impose maritime evidence preservation, the following conditions shall be fulfilled:

(1)

The claimant is the party to the maritime claim;

GARRISONING THE MACAO SPECIAL ADMINISTRATIVE REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-06-28 Effective Date  1999-12-20  


Law of the People’s Republic of China on Garrisoning the Macao Special Administrative Region

Contents    
Chapter I  General Provisions
Chapter II  Functions and Responsibilities of the Macao Garrison
Chapter III  Relationship Between the Macao Garrison and the Government of the Macao Special Administrative Region
Chapter IV  Obligation of and Discipline for Members of the Macao Garrison
Chapter V  Judicial Jurisdiction over Members of the Macao Garrison
Chapter VI  Supplementary Provisions

(Adopted by the tenth Meeting of the Standing Committee of the Ninth National People’s Congress on June 28,1999, promulgated by Order
No. 18 of the President of the People’ Republic of China, and effective as of December 20, 1999)

Contents    

    Chapter I  General Provisions

    Chapter II  Functions and Responsibilities of the Macao Garrison

    Chapter III  Relationship Between the Macao Garrison and the Government of the Macao Special Administrative
Region

    Chapter IV  Obligation of and Discipline for Members of the Macao Garrison

    Chapter V  Judicial Jurisdiction over Members of the Macao Garrison

    Chapter VI  Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted in accordance with the Constitution and the Basic Law of the Macao Special Administrative Region to
ensure the lawful performance of functions and responsibilities by the military forces by the Central People’s Government in the
Macao Special Administrative Region for defence, and to maintain the sovereignty, unity and territorial integrity of the State and
the security of Macao.

    Article 2  The military forces stationed by the Central People’s Government in the Macao Special Administrative Region for defense
shall be designated as the Macao Garrison of the Chinese People’s Liberation Army (hereinafter referred to as the Macao Garrison).

    The Macao Garrison shall be subject to the direction of the Central Military Commission of the People’s Republic
of China. Its components and the number of its members shall be determined according to the need for the defence of the Macao Special
Administrative Region.

    The Macao Garrison shall practice a system of rotation of its members.

    Article 3  The Macao Garrison shall not interfere in the local affairs of the Macao Special Administrative Region. The Government
of the Macao Special Administrative Region may, when necessary, ask the Central People’s Government for assistance from the Macao
Garrison in the maintenance of public order or in disaster relief.

    Article 4  Members of the Macao Garrison shall abide by not only national laws but also the laws of the Macao Special Administrative
Region.

    Article 5  Expenditures for the Macao Garrison shall be borne by the Central People’s Government.
Chapter II  Functions and Responsibilities of the Macao Garrison

    Article 6  The Macao Garrison shall perform the following defence functions and responsibilities:  

    (1)preparing against and resisting aggression, and safeguarding the security of the Macao Special Administrative
Region;

    (2)carrying out defence duties;

    (3)administering military facilities;

    (4)handling foreign-related military affairs.

    Article 7  In the event that the Standing Committee of the National People’s Congress decides to declare a state of war or, by reason
of turmoil within the Macao Special Administrative Region, decides that the Region is in a state of emergency, the Macao Garrison
shall perform its duties in accordance with the provisions of the national laws that the Central people’s Government decides to apply
in the Region.

    Article 8  No weapons and equipment, such as aircraft and vessels, and no materials of the Macao Garrison , and no members or vehicle
of the Garrison that bears a certificate or a document of certification issued by the Macao Garrison showing that the bearer is on
official duty, shall be inspected, searched, seized or detained by any law-enforcing officer of the Macao Administrative Region.

    The Macao Garrison and its members shall also enjoy other rights and immunities prescribed by the laws in
force in the Macao Special Administrative Region.

    Article 9  Members of the Macao Garrison may, in accordance with the provisions of the laws in force in the Macao Special Administrative
Region, take measures to stop any act which obstructs their performance of official duties.
Chapter III  Relationship Between the Macao Garrison and the Government of the Macao Special Administrative Region

    Article 10  The Government of the Macao Special Administrative Region shall support the Macao Garrison in its performance of defence
functions and responsibilities and guarantee the lawful rights and interests of the Macao garrison and its Members.

    The Macao Special Administrative Region shall, by means of law, guarantee the rights and immunities that the
Macao Garrison and its members should enjoy when performing their functions and responsibilities.

    The Macao Special Administrative Region shall consult the Macao Garrison when formulating any policy or drafting
and legislation which concerns the Macao Garrison.

    Article 11  The Macao Garrison shall notify in advance the Government of the Macao Special Administrative Region of any military activities
it is to conduct such as training exercises and manoeuvres which may affect the public interests of the Macao Special Administrative
Region.

    Article 12  The Macao Garrison and the Government of the Macao Special Administrative Region shall jointly protect the military facilities
within the Macao Special Administrative Region.

    The Macao Garrison shall delimit military restricted zones in conjunction with the Government of the Macao
Special Administrative Region. The location and boundaries of the military restricted zones shall be declared by the Government of
the Macao Special Administrative Region.

    The Government of the Macao Special Administrative Region shall assist the Macao Garrison in maintaining the
security of the military restricted zones, and prohibit any organization or individual from damaging or endangering any military
facilities.

    Without permission of the Commander of the Macao Garrison or other officers as he may authorizes to give such
permission, no person, vehicle, vessel or aircraft other than those of the Macao Garrison shall enter the military restricted zones.
Guards of the military restricted zones shall have the right to stop according to law any unauthorized entry into any military restricted
zone or any act which damages or endangers any military facilities.

    The Macao Garrison shall protect the natural resources, historical relics and monuments, and other non-military
rights and interests within the military restricted zones in accordance with the laws of the Macao Special Administrative Region.

    Article 13  Any land used by the Macao Garrison for military purposes shall be supplied without compensation by the Government of
the Macao Special Administrative Region.

    Any land used by the Macao Garrison for military purposes, when approved by the Central People’s Government
to be no longer needed for defence purposes, shall be turned over without compensation to the Government of the Macao Special Administrative
Region for disposal.

    If the Government of the Macao Special Administrative Region needs for public use any part of the land used
for military purposes by the Macao Garrison, it shall seek approval of the Central People’s Government; where approval is obtained,
the Government of the Macao Special Administrative Region shall make reprovision of land and military facilities for the Macao Garrison
at such sites as agreed to by the Central People’s Government, and shall bear all the expenses and costs entailed.

    Article 14  Where the request of the Government of the Macao Special Administrative Region to the Central People’s Government for
assistance from the Macao Garrison in the maintenance of public order or in disaster relief is approved by the Central People’s Government,
the Macao Garrison shall call out troops in accordance with the order of the Central Military Commission to carry out tasks of assistance
in the maintenance of public order or in disaster relief, and upon completion of the tasks, the troops shall return to their barracks
immediately.

    The troops of the Macao Garrison who are called out to assist in the maintenance of public order or in disaster
relief shall, under the arrangement of the Government of the Macao Special Administrative Region, be commanded by the Commander of
the Macao Garrison or the officer authorized by him.

    Members of the Macao Garrison may, in the course of rendering assistance in the maintenance of public order
or in disaster relief, exercise the powers matched to the tasks they carry out and conferred to law-enforcing personnel concerned
by the laws of the Macao Special Administrative Region.

    Article 15  The Macao Garrison and the Government of the Macao Special Administrative Region shall establish liaison to deal with
matters concerning the Macao Garrison through consultation.
Chapter IV  Obligation of and Discipline for Members of the Macao Garrison

    Article 16  Members of the Macao Garrison shall fulfill the following obligations:

    (1) to be loyal to their motherland, perform their functions and responsibilities, maintain the security,
honour and interests of their motherland, and safeguard the security of Macao;

    (2) to abide by national laws and the laws of the Macao Special Administrative Region, and observe military
discipline;

    (3) to respect the organs of political power, the social system and the ways of life of the Macao Special
Administrative Region;

    (4) to cherish the public property of the Macao Special Administrative Region and the private property of
Macao residents and other persons;

    (5) to observe public ethics and cultivate civility and courtesy. Article 17 Members of the Macao Garrison
shall not join any political, religious or social organization in Macao.

    Article 18  The Macao Garrison shall not engage in any form of profit-making business activities. Members of the Macao Garrison shall
not engage in any other activity incompatible with their functions and responsibilities as servicemen.

    Article 19  Any member of the Macao Garrison who contravenes any national law or law of the Macao Special Administrative Region shall
be investigated for legal liability according to law.

    Any member of the Macao Garrison who breaches military discipline shall be subject to disciplinary sanction.
Chapter V  Judicial Jurisdiction over Members of the Macao Garrison

    Article 20  Criminal offences committed by members of the Macao Garrison shall be under the jurisdiction of the military judicial
organs; but offences which are committed by members of the Macao Garrison when not performing their official duties and in such violation
of the personal right or property right of Macao residents or other persons who are not of the Macao Garrison or otherwise in such
contravention of the laws of the Macao Special Administrative Region as to constitute crimes, shall be subject to the jurisdiction
of the judicial organs of the Macao Special Administrative Region.

    The military judicial organ and the judicial organs of the Macao Special Administrative Region may transfer
to the other party the criminal cases of members of the Macao Garrison under their respective jurisdiction if they consider it to
be more appropriate for the other party to exercise jurisdiction, provided that consensus is reached through consultation.

    Macao residents or other persons not of the Macao Garrison involved as defendants in the criminal cases of
members of the Macao Garrison under the jurisdiction of the military judicial organs shall be tried by the courts of the Macao Special
Administrative Region.

    Article 21  Any person who is lawfully arrested as a suspected offender by law-enforcing officers of the Macao Special Administrative
Region, once confirmed upon investigation to be a member of the Macao Garrison, shall be handled over to the Macao Garrison for custody.
Jurisdiction over the case involving the person in custody shall be determined in accordance with the provisions in Article 20 of
this Law.

    Article 22  Any member of the Macao Garrison sentenced by a court of the Macao Special Administrative Region to criminal punishment
which deprives him of or restricts his personal freedom or to security measures shall be delivered for sentence enforcement according
to the provisions of the laws of the Macao Special Administrative Region, except for the case in which the place of sentence enforcement
is otherwise determined by a relevant law-enforcing organ of the Macao Special Administrative Region and the military judicial organ
through consultation.

    Article 23  Where any member of the Macao Garrison, in contravention of the laws of the Macao Special Administrative Region, infringes
the civil rights of any Macao resident or other person not of the Macao Garrison, the parties concerned may seek settlement through
consultation or mediation; if they are unwilling or fail to reach settlement through consultation or mediation, the infringed party
may bring an action in the court. Cases of tort arising from acts committed by members of the Macao Garrison when not performing
their official duties shall be subject to the jurisdiction of the courts of the Macao Special Administrative region; cases of tort
arising from acts committed by members of the Macao Garrison when performing their official duties shall be subject to the jurisdiction
of the Supreme People’s Court of the People’s Republic of China, and compensation for any loss or injury incurred by acts of tort
shall be governed by the laws of the Macao Special Administrative Region.

    Article 24  Where any contractual disputes arises within the Macao Special Administrative Region between any organ or unit of the
Macao Garrison and any Macao resident or other person not of the Macao garrison, the parties concerned may settle their dispute through
consultation or mediation; if the parties are unwilling or fail to reach settlement through consultation or mediation, they may submit
the dispute to the arbitration institution for arbitration in accordance with the arbitration clause contained in the contract or
with a written arbitration agreement reached by the parties afterwards. If no arbitration clauses is contained in the contract and
no written arbitration agreement is reached afterwards, the parties may institute proceedings in a court of the Macao Special Administrative
Region, except that the parties agree otherwise as to the court for instituting proceedings.

    Article 25  Certificates issued by the Macao Garrison regarding facts such as identity of membership of the Macao Garrison and acts
in performance of official duties shall be valid evidence in proceedings in the courts of the Macao Special Administrative Region,
unless the contrary is proved.

    Article 26  Acts of the State of the Macao Garrison such as defense affairs shall not be subject to the jurisdiction of the courts
of the Macao Special Administrative Region.

    Article 27  Organs or units of the Macao Garrison shall comply with the judgements or orders issued by the courts of the Macao Special
Administrative Region concerning arrangement of their property; but the said courts shall not enforce judgements or orders on any
weapon, equipment, material or other property of the Macao garrison.

    Article 28  The military judicial organs may, through consultation, maintain juridical relations with the courts and the relevant
law-enforcing organs of the Macao Special Administrative Region, and they may render assistance to each other.
Chapter VI  Supplementary Provisions

    Article 29  The power of interpretation of this Law shall be vested in the Standing Committee of the National People’s Congress.

    Article 30  This Law takes effect as of December 20,1999.






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUES RELATED WITH THE OFFSET TAXABLE INCOME ON TECHNOLOGY DEVELOPMENT FEE OF ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on the Issues Related with the Offset Taxable Income on Technology Development Fee
of Enterprises with Foreign Investment

GuoShuiFa [1999] No.173

September 17, 1999

The national taxation bureaus of all provinces, autonomous regions, municipalitie directly under the Central Government and municipalities
separately listed on the State plan, the local taxation bureau of Shenzhen City:

Recently, the State Council has decided that in those enterprises with foreign investment where technology development fee has increased
by over 10% (including 10%) than that for the previous year, shall be permitted, upon examination and approval by the taxation authorities,
to re-offset 50% of the amount actually used for technology development fee for the taxable income for the same year.

The relevant issues with the implementation of this preferential taxation policy are notified as follows:

1.

In the enterprises where technology development fee occurred within the Chinese territory for the year has increased by over 10% (including
10%) than that for the previous year, they shall be permitted, upon examination and approval by the taxation authorities, to re-offset
50% of the technology development fee actually used for the year for the taxable income for the same year. The application period,
procedures for examination and verification, and approval power shall be provided by the taxation authorities at the provincial level
(autonomous regions, municipalitie directly under the Central Government and municipalities separately listed on the State plan),
in accordance with the relevant laws, regulations and the present Circular, and taking into account of the actual situation at their
localities. The regulations thus formulated shall be filed with the State Administration of Taxation.

The technology development fee applicable to provisions of the proceeding Article refers to: new products designing fee actually used
by the enterprises in one tax payment year for research and development of new products, new skills and new technologies; technology
process formulation fee; equipment test and adjustment fee; trial-production fee for raw materials and semi-products; technology
books and material fee; intermediate experiment fee not enlisted into the State plan; staff members wages of the research institutions;
depreciation fee for research equipment; and other fees related with trial-production of new products and technology research. Fees
excluded are purchase fee or using fee paid for technology purchased from other units by the enterprises or technology using right
transferred to the enterprises, and fees for operation cost and expenses paid by the enterprises engaged in technology development
for business related with technology development service.

2.

In the enterprises where technology development fee has increased by over 10% than that for the previous year, and 50% of the amount
actually used by the enterprises is higher than the taxable income for this year, the enterprises may be permitted to offset the
portion which is not exceeding their taxable income; for the exceeding portion, they shall not be allowed to offset in this year
or for the succeeding years.

For enterprises having no taxable income for this year after they have made up for the loss for the previous year, in accordance with
the provisions of the Article 11 of the Income Tax Law of the People’s Republic of China Concerning Enterprises with Foreign Investment
and Foreign Enterprises, technology development fee they have actually used in the same year shall not be applicable to the provisions
of Clause one, Article 1 of the present Circular.

3.

Technology development fee occurred owing to the establishment, by enterprises with foreign investment, of institutions and places
within the Chinese territory and engaging in productive and operative activities, shall be dealt with on the analogy of the provisions
as specified in this Circular.

4.

This Circular shall come into effect on sJanuary 1, 2000.

 
The State Administration of Taxation
1999-09-17

 




CIRCULAR OF THE MINISTRY OF SCIENCE AND TECHNOLOGY, THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING SHARE-HOLDING WITH PRICED HIGH/NEW TECHNOLOGICAL RESEARCH FINDINGS

The Ministry of Science And Technology, the State Administration for Industry And Commerce

Circular of the Ministry of Science And Technology, the State Administration for Industry and Commerce Concerning Share-holding with
Priced High/new Technological Research Findings

GuoKeFaZhengZi [1999] No.351

August 19, 1999

The science and technology commissions and administrations for industry and commerce of various provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan:

The Provisions Concerning the Facilitation of the Conversion of High/new Technological Research Findings of the Ministry of Science
and Technology, the Ministry of Education, the Ministry of Personnel, the Ministry of Finance, the People’s Bank of China, the State
Administration of Taxation and the State Administration for Industry and Commerce transmitted by the general office of the State
Council on March 30, 1999 made new provisions for shareholding or investment with high/new technological research findings. Related
issues for the implementation of the Regulations are now notified as follows:

Investment or shareholding with high/new technological research findings in companies with limited liability or non-company enterprises
should continue to be governed by the examination and authentication procedures in accordance with the Provisions Concerning the
Facilitation of the Conversion of High/new Technological Research Findings and its Implementing Measures jointly promulgated by the
Ministry of Science and Technology and the State Administration for Industry and Commerce. However, if the high/new technological
research finding is priced at more than 5 million RMB and exceeds 35% of the registered capital of the company or enterprise, the
research finding in question should be examined and authenticated by the Ministry of Science and Technology.



 
The Ministry of Science And Technology, the State Administration for Industry And Commerce
1999-08-19

 







CIRCULAR OF THE NATIONAL COPYRIGHT ADMINISTRATION ON PROHIBITING USE OF ILLEGALLY COPIED COMPUTER SOFTWARE

Category  INTELLECTUAL PROPERTY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-02-24 Effective Date  1999-02-24  


Circular of the National Copyright Administration on Prohibiting Use of Illegally Copied Computer Software

(Drawn by the National Copyright Administration on August 23, 1995, promulgated

by the General Office of the State Council on February 24, 1999)

    In order to effectively enforce the Copyright Law of the People’s Republic of China and the Regulations on
the Protection of Computer Software, implement the Circular on Further Strengthening the Protection of Intellectual Property of the
State of Council, protect legal rights copyright owners in China and foreign countries, provide favorable social environment for
the development, production and operation of computer software, and promote the cooperation of foreign economy, trade, science and
technology as well as cultural exchange, no unit shall use unauthorized computer software in its computer system.






REFORM PLAN ON SCIENCE AND TECHNOLOGY AWARD SYSTEM

Category  SCIENCE AND TECHNOLOGY Organ of Promulgation  The General Office of State Council Status of Effect  IN Force
Date of Promulgation  1999-07-23 Effective Date  1999-07-23  


Reform Plan on Science and Technology Award System



(Drafted by Ministry of Science and Technology on July 23rd 1999, transmitted by the General Office of State Council, GOSC File No. 67 [1999] on July 23rd
1999)

    The Science and Technology Award System constitutes an important part of our national science and technology
policies, and is the actual embodiment of the China Communist Party’s guidelines of respecting knowledge and the talent. This Plan
is formulated with a view to fully realize our Party’s ideas at its Fifteenth National Congress with respect to “developing a set
of incentive mechanisms favoring the training and use of the talent “, to effectively enforce the , to form and enhance a state science and technology innovation evaluation system, and to promote the implementation of strategy of
developing a country through science and education.

    I. The guidelines on furthering the reform to science and technology award system

    Since the National Meeting of Science in March 1978, China has restored and restructured the state science
and technology award system, which has played an important role in improving the creative initiatives of vast science and technology
staff and promoting the emerging of able persons and thriving of leaders in various scientific subjects, and has become a powerful
lever for the country in exercising macro adjustment and control to science and technology development.

    With the formation of the socialist market economic system, the old science and technology award system is
facing new conditions and new problems. First, the excessive award projects and the appreciable quality decrease of awarded projects
have relatively weakened their functions in driving the economic development and social advancement. Second, there is no authentic
highest award and lacks magnitude in spiritual and material incentives. Third, the awarded projects are loose away with the economic
and social development and have powerless beacon function in promoting technology innovation, achievement realization and high-tech
industrialization. Fourth, overlapping awards granted by departments, local authorities and social forces both within and outside
China prevail, and excessive and disorderly kinds of awards heavily exist. Therefore, we must carry out reform and duly enforce the
to fully utilize the important adjustment, control and beacon functions of science and technology award, facilitating the healthy
development of our administration of science and technology award.

    The guidelines of reform to science and technology award system are as follows: encouraging innovations, encouraging
reaching the summit of science and technology, creating and improving incentive mechanisms for the training and use of the talent,
promoting the close combination between scientific research , technology development and economic and social development, promoting
the commercialization and industrialization of science and technology achievements, and accelerating the enforcement of strategy
of developing a country through science and education and sustainable development.

    The main contents of reform include: complete enforcement of the , adjustment of award setting, award magnitude, evaluation standard , judging method and so on, reinforcement of management and guiding
to the various departmental, local and social science and technology awards, and propelling the smooth proceeding of our reform to
science and technology award system.

    II. Reforming award setting and adjusting award structure

    1. Creating state highest science and technology award

    To boost and ensure the solemnity and authority of state science and technology award, in accordance with
the , the state highest science and technology award has been established since 1999. As the highest award in science and technology in
China, it will grant generous award to excellent and outstanding persons in science and technology, to encourage comprehensive science
and technology staff reaching the summit thereof, devoting themselves to the grand cause of developing our country through science
and education.

    The state highest science and technology award shall be granted to the science and technology workers who
have made remarkable breakthrough in modern science and technology frontier or have extraordinary achievement in science and technology
development; or those who have created substantial economic benefits or social benefits in the course of science and technology innovation,
science and technology achievement realization and high-tech industrialization. The number of the awarded persons shall not exceed
2 each year. Pursuant to Section 20 of the , subject to approval by the State Council, it’s provided that: the individual prize amount of the state highest science and technology
award shall be 5 million Yuan, of which 500,000 Yuan shall be owned by the individual receiving the award for improvement of living
conditions, and 4.5 million Yuan shall be used as scientific research funds supporting the subject chosen by, at the discretion of,
the awarded person.

    The state highest science and technology award shall be reported to and signed by the State Chairman with
issuance of certificate and prize.

    2. Perfecting four major science and technology awards at state level

    The four major science and technology award at state level refer to the State Natural Science Award, State
Technical Invention Award, State Science and Technology Advancement Award and International Science and Technology Cooperation Award
of the People’s Republic of China. The reform today shall, in accordance with the provisions of , adjust the internal structure of the awards, improve judging mechanisms and reinforce policy direction. For the actual realization
of “fewer but essential” principle, only first and second grade awards shall exist in the State Natural Science Award, State Technical
Invention Award, and State Science and Technology Advancement Award. The total sum of annual awarded projects shall be reduced from
previous over 800 to not more than 400. The main points of adjustment of relevant Awards are respectively as follows:

    (1). State Natural Science Award

    The award will be accorded to citizen who formulates the phenomena, characteristics and law of nature and
makes significant scientific discovery in basic research and application basic research.

    The judging standard will be close to the general international conventions, and the scientific level, scientific
value, the number of published articles on domestic and foreign authentic periodicals and the number of quotation thereof will be
important indexes, and international scholars will be invited to participate in the judging as appropriate.

    (2). State Technical Invention Award

    The award will be accorded to citizens who make significant technical invention in product, technics, material
and system by applying science and technology.

    The judging standard will be further stressed in threefold. First is the connection to intellectual property
and requires the awarded project having invention patent right, computer software copyright, new plant species right and so on or
qualifying to the related intellectual property after examination; second is the requirement that the application of the technical
invention will provide great economic benefits or social benefits; and third is the appropriate inclination to strategic high-tech
invention.

    (3). State Science and Technology Advancement Award

    The State Science and Technology Advancement Award will be accorded to citizens or organizations that make
outstanding contributions in the application and popularization of advanced science and technology achievement or accomplishing key
science and technology engineering, program or project. In consideration of the wide coverage, wide influence and strong policy direction
of the State Science and Technology Advancement Award, many problems reflected in every respect exist. During the reform today, we
will further clarify the policy direction of the State Science and Technology Advancement Award and make the evaluation standard
more scientific by formulating different judging principles and methods.

    Award in technical development will be accorded to citizens or organizations that accomplish key science and
technology innovation or science and technology achievement realization and creates substantial economic benefits in carrying out
technical development project. The achieved economic benefits, input and output ratio, market share rate and the actual performance
of intellectual participation in distribution as an element of productivity are the main judging standards.

    Award in basic public welfare will be accorded to citizens or organizations that have engaged long in basic
work in science and technology and created significant social benefits after being examined by reality in carrying out social welfare
projects. The values of those contributions and science and technology achievements created to the scientific advancement of the
general society are the main judging standards.

    Award in national security will be accorded to citizens or organizations that have made significant science
and technology contributions to the promotion of national security modernization drive and to the protection of national security
in carrying out national security projects. The level of the science and technology innovation and the strategic significance are
the main judging standards.

    Award in key engineering will be accorded to organizations that ensure the engineering up to the international
advanced level. The general science and technology level of the unit and the collective, cooperativeness, cracking volume complicated
and critical technical problems and whether the key engineering up to the international advanced level are the main judging standards.

    Award in key engineering of the State Science and Technology Advancement Award will be limited to organizations.
Citizens that make contributions to the awarded project may be praised or rewarded by the awarded unit or its competent authorities.
Citizens that make scientific discovery or significant invention in accomplishing the key engineering may be separately recommended
for the State Natural Science Award or the State Technical Invention Award.

    (4). International Science and Technology Cooperation Award of the People’s Republic of China

    The International Science and Technology Cooperation Award of the People’s Republic of China will be accorded
to the following foreigners or organizations that make significant contributions to our cause of science and technology, that: (a)
research, develop and create significant science and technology achievement in cooperation with Chinese citizens or organizations;
(b) introduce advanced science and technology to Chinese citizens or organizations and train human resources with significant effect;
or (c) make significant contributions to the promotion of international science and technology exchange and cooperation between China
and foreign counties. This Award is more of honor. The trend is to the setting of bilateral or multilateral science and technology
cooperation award.

    The State Council will issue the certificate and prize for the State Natural Science Award, the State Technical
Invention Award and the State Science and Technology Advancement Award. The State Council will issue the certificate for the International
Science and Technology Cooperation Award of the People’s Republic of China.

    III. Strengthening the management to the science and technology awards set by departments, local authorities
and social forces

    The excessive and disorderly status in science and technology awards set by departments, local authorities
and social forces shall be tackled by forming rules and regulations and strengthening management. We shall formulate fair, open and
just examination rules, establish scientific evaluation standards, strictly regulate the procedures and activities regarding recommendation,
nomination, examination and voting, and subject the science and technology award work to science and legality. The science and technology
awards set by the departments under the State Council and the people’s governments of provinces, autonomous regions and municipalities
directly under the central authority shall be streamlined in accordance with “fewer but essential” principle in great quantities
to overcome the negative effect caused by the layers of awards set.

    All regions and all departments shall cooperate with every effort to make the state science and technology
award a success, ensure its level and enhance its social effect. The people’s governments of provinces, autonomous regions and municipalities
directly under the central authority may consider to form local science and technology award commission and other organizations,
pay attention to the functions of professional or discipline intermediaries, and duly safeguard the examination work of science and
technology award to be scientific, fair and authentic. In accordance with the , the relevant departments under the State Council shall, based on the particular condition of national security, set departmental
science and technology award. The people’s governments of provinces, autonomous regions and municipalities directly under the central
authority may set one provincial science and technology award. Except aforesaid awards, no other awards shall be set. The number
of projects of science and technology award will be streamlined in great quantities too. All regions and departments shall, strictly
in accordance with the  , clean the existing science and technology award.

    There are more and more science and technology awards set in China by domestic or foreign organization or
individual. The underlying ideas and desires are mostly sound, and, especially, the oversee patriots’ generosity to donate for the
awards and enthusiasm to support the prosperity of the nation’s science and technology shall be fully confirmed and protected. But
some science and technology awards in society are blind and unregulated due to lagging management and direction. We shall, in accordance
with “strong support, active direction, regulatory management and orderly process” principle, conforming to their trend and by conductive
direction, establish necessary registration system to enhance their healthy development and make them a beneficial supplement of
the state science and technology award. The Ministry of Science and Technology shall, in accordance with the  , formulate concrete rules to orderly manage and direct the activities regarding science and technology award in society.

    Problems of non-observance of laws and regulations exist in the current science and technology award work.
Especially, there exist formalism, eyewash and even nepotism and cheating during the course of verification, recommendation, nomination
and examination, which, although occurring in limited unit and place, have adverse effect and strong erosion. We shall extend scientific
and moral education, reform the existing verification methods regarding science and technology achievement and new product, rectify
the misfeasance, and ensure the science and technology award reform up to the planed target.

    IV. Award standards of state science and technology award

    In the old state science and technology award system, the first grade prize for the State Natural Science
Award and the State Technical Invention Award is 60,000 Yuan, and 45,000 Yuan for the State Science and technology Advancement Award.
The second grade prize for all the awards is 300,00 Yuan. Now, we adjust the prize standard for the State Natural Science Award,
the State Technical Invention Award and the State Science and technology Advancement Award to 90,000 Yuan for first grade and 60,000
Yuan for second grade.

    The funds for the state science and technology award will derive from the financial budget of the central
government with specific account.

    V. Responsibilities and structure of the State Science and technology award Commission

    In accordance with the , a State Science and technology award Commission shall be formed to perform macro management and direction of state science and technology
award. The Examination Committee, consisting of related experts and scholars employed by the State Science and technology award Commission,
is formed to be responsible for examination work and proposing examination opinions to the State Science and technology award Commission.
The State Science and technology award Commission shall, based on the examination opinions, make a resolution about the award receivers,
award category and award grade, and submit them to the Ministry of Science and Technology for review. After being approved by the
Ministry of Science and Technology, the results of examination shall be ratified by the State Council.

    The Chief Commissioner of the State Science and technology award Commission shall be assumed by the minister
of Science and Technology; the leaders in relevant departments of science and technology, education and etc., renowned scientists
and relevant experts in number of 15 to 20 shall be the members thereof to ensure the examination work is scientific, fair and authentic.
The members shall be nominated by the minister of Science and Technology, and be reported to the State Council for ratification.






MARINE ENVIRONMENT PROTECTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA




The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.26

The Marine Environment Protection Law of the People’s Republic of China has been revised at the 13th Meeting of the Standing Committee
of the Ninth National People’s Congress on December 25, 1999, and hereby promulgated its revised edition for implementation as of
April 1, 2000.

President of the People’s Republic of China: Jiang Zemin

December 25, 1999

Marine Environment Protection Law of the People’s Republic of China (1999) ContentsChapter I General Provisions

Chapter II Supervision and Administration of Marine Environment

Chapter III Marine Ecological Protection(Conversion)

Chapter IV Prevention and Control of pollution Damage to the Marine Environment by Land-based Pollutants

Chapter V Prevention and Control of Pollution Damage to the Marine Environment by Coastal Construction Projects

Chapter VI Prevention and Control of Pollution Damage to the Marine Environment by Marine Construction Projects

Chapter VII Prevention and Control of Pollution Damage to the Marine Environment by Dumping of Wastes

Chapter VIII Prevention and Control of Pollution Damage to the Marine Environment by Vessels and Their Related Operations

Chapter IX Legal Liabilities

Chapter X Supplementary Provisions

Chapter I General Provisions

Article 1

This law is enacted to protect and improve the marine environment, conserve marine resources, prevent pollution damages, maintain
ecological balance, safeguard human health and promote sustainable economic and social development.

Article 2

This law shall apply to the internal waters, territorial seas and the contiguous zones, exclusive economic zones and continental shelves
of the People’s Republic of China and all other sea areas under the jurisdiction of the People’s Republic of China. All units and
individuals engaged in navigation, exploration, exploitation, production, tourism, scientific research and other operations in the
sea areas under the jurisdiction of the People’s Republic of China, or engaged in operations in the coastal areas which have impact
on the marine environment shall comply with this law. This law shall also apply to areas beyond the sea areas under the jurisdiction
of the People’s Republic of China that cause pollution to the sea areas under the jurisdiction of the People’s Republic of China.

Article 3

The State shall establish and put into practice the system to control the total pollution load for sea disposal in key sea areas,
determine the standards to control the total load of key pollutants for sea disposal and control the pollution load for sea disposal
assigned for key pollution sources. Specific measures for the implementation shall be formulated by the State Council.

Article 4

All units and individuals shall have the obligation to protect the marine environment and have the right to watch for and report on
actions causing pollution damages to the marine environment by any unit and individual, as well as on the act of transgression of
the law and neglect of duty by marine environment supervision and administration personnel.

Article 5

The competent administrative department in charge of environment protection under the State Council, as a department to exercise unified
supervision and administration over nation-wide marine environment protection work, shall render guidance, co-ordination and supervision
and be responsible for nation-wide environment protection work to prevent and control marine pollution damages caused by land-based
pollutants and coastal construction projects.

The competent State Oceanic administrative department in charge of marine affairs shall be responsible for the supervision and administration
of the marine environment, organize survey, surveillance. supervision, assessment and scientific research of the marine environment
and be responsible for nation-wide environment protection work to prevent and control marine pollution damages caused by marine construction
projects and dumping of wastes in the sea.

The competent State administrative department in charge of maritime affairs shall be responsible for the supervision and administration
of marine environment pollution caused by non-military vessels inside the port waters and non-fishery vessels and non-military vessels
outside the port waters under their jurisdiction, and be responsible for the investigation and handling of the pollution accidents.
In the event of a pollution caused by a foreign vessel navigating, berthing and anchoring and operating in the sea area under the
jurisdiction of the People’s Republic of China, officers in charge shall board the vessel in question to examine and handle the case.
Should a pollution accident caused by vessels result in fishery damages, the competent administrative department in charge of fisheries
shall be invited to take part in the investigation and handling of the accident.

The competent State administrative department in charge of fisheries shall be responsible for the supervision and administration of
marine environment pollution used by non-military vessels inside the fishing port waters and the fishing vessels outside the fishing
port waters, and be responsible for the protection of ecological environment in the fishing zones and examine and handle fishery
pollution cases beyond the pollution accidents mentioned in the previous clause.

The environmental protection department of the Armed Forces shall be responsible for the supervision and administration of marine
pollution caused by military vessels and for the investigation and handling of the pollution cases.

The functions and responsibilities of the departments invested by the law with power to conduct marine environment supervision and
administration of the coastal local People’s Governments above the county level shall be determined by the People’s Governments of
the Provinces, Autonomous Regions and Municipalities directly under the Central Government in accordance with this law and relevant
regulations of the State Council.

Chapter II Supervision and Administration of the Marine Environment

Article 6

The competent State administrative department in charge of marine affairs, in conjunction with relevant departments of the State Council
and the People’s Governments of the provinces, Autonomous Regions and Municipalities directly under the Central Government in the
coastal areas, shall work out national marine functional zonation scheme and submit to the State Council for approval.

The coastal local People’s Governments shall, in accordance with the national and local marine functional zonation scheme, make good
use of the sea areas in a scientific and rational way.

Article 7

The State shall draw up, in accordance with the marine functional zonation scheme, national marine environment protection plan and
regional marine environment protection plans in key sea areas.

Relevant People’s Governments of the Provinces, Autonomous Regions and Municipalities directly under the Central Government in the
coastal areas adjacent to key sea areas and the departments invested by the law with power to conduct marine environment supervision
and administration may set up regional co-operation organization in marine environment protection, responsible for the implementation
of regional marine environment protection plans in key sea areas, prevention and control of marine environment pollution and marine
ecological conservation work.

Article 8

Trans-regional marine environment protection work shall be implemented through consultation by relevant coastal local People’s Governments
or to be implemented through consultation by the People’s governments at the upper level.

Major trans-department marine environment protection work shall be co-ordinated by the competent administrative department in charge
of environment protection under the State Council. Those unable to be settled through co-ordination shall be subject to the State
Council for decision.

Article 9

The State shall work out national marine environment quality standards in accordance with the state of affairs of the marine environment
quality and the conditions of economic and technological levels.

The People’s Governments of coastal Provinces, Autonomous Regions and Municipalities directly under the Central Government may work
out local marine environment quality standards for items not specified in the national marine environment quality standards.

The coastal local People’s Governments at various levels shall, in accordance with the stipulations laid down in the national and
local marine environment quality standards and state of coastal sea area environment quality of their respective administrative areas,
work out targets and tasks in the field of marine environment protection, channel into the work plan of the People’s Governments
and exercise administration in accordance with corresponding marine environment quality standards.

Article 10

National and local marine environment quality standards shall be one of the important foundations in working out national and local
water pollutant discharge standards. In the key sea areas where the State has established and put into practice the system to control
the total pollution load for sea disposal, the determination of water pollutant discharge standards shall also take the control standards
of the standards to control the total load of key pollutants for sea disposal as an important basis.

Article 11

All units and individuals practicing direct discharge of pollutants into the sea shall, in accordance with the State regulations,
pay pollutant discharge fees.

Those dumping wastes in the sea shall, in accordance with the State regulations, pay dumping fees.

Pollutant discharge fees and dumping fees levied in accordance with the provisions of this law must be used for the prevention and
control of marine environment pollution and shall not be appropriated for any other purposes. Specific measures shall be formulated
by the State Council.

Article 12

For those in excess of pollutant discharge standards, or failing to accomplish pollutant discharge reducing tasks within a specified
period of time, or resulting in serious marine environment pollution damages, a deadline shall be set for the elimination or control
of the pollution within a certain period of time.

The setting of a deadline shall be determined in accordance with the jurisdiction prescribed by the State Council.

Article 13

The State shall strengthen the research and development of science and technology in the field of prevention and control of marine
environment pollution damages and shall put into practice the elimination system of those out-of-date production techniques and out-of-date
equipment which cause serious marine environment pollution damages.

Enterprises shall give priority in introducing clean energies and adopting clean production technology with higher resources utilization
ratio and less pollutant discharges, so as to prevent pollution to the marine environment.

Article 14

The competent State administrative department in charge of marine affairs shall, in accordance with State environmental monitoring
and supervisory norms and standards, administer the investigation, monitoring and supervision of nation-wide marine environment,
work out specific measures of implementation, organize nation-wide marine environment monitoring and supervision network in conjunction
with relevant departments, handle assessment of marine environment quality at regular intervals and release sea cruise supervision
dispatches.

Departments invested by this law with power to conduct marine environment supervision and administration shall be responsible for
the monitoring and supervision of the water areas under their respective jurisdiction.

Other relevant departments shall, in accordance with the division of work of nation-wide marine environment monitoring network, be
respectively responsible for the mouths of rivers that empty into the sea and main pollutant discharge outlets.

Article 15

Relevant departments of the State Council shall provide the competent administrative department in charge of environment protection
under the State Council with necessary marine environment monitoring data for the compilation of national environment quality bulletins.

The competent administrative department in charge of environrnent protection shall provide relevant departments with data relating
to marine environment supervision and administration.

Article 16

The competent State administrative department in charge of marine affairs shall, in accordance with environment monitoring and supervision
information management system formulated by the State, be responsible for the management of comprehensive marine information system
and render services to the supervision and administration of marine environment protection.

Article 17

Any unit and individual causing or potentially resulting in marine environment pollution because of accidents or other contingency
must immediately adopt effective measures, timely inform those potentially endangered, report to the department invested by this
law with power to conduct marine environment supervision and administration and be subject to investigation and handling.

Coastal local People’s Governments above the County level must, at a time when the offshore environment within their administration
endangered by serious pollution, adopt effective measures to eliminate or decrease pollution damage.

Article 18

The State shall, in accordance with the necessity to prevent marine environment pollution, draw up State contingency plans to deal
with major Marine pollution accidents.

The competent State administrative department in charge of marine affairs shall be responsible for drawing up State contingency plans
to deal with major oil spill accidents on the sea caused by offshore oil exploration and exploitation and submit the plans to the
competent administrative department in charge of environment protection in the State Council for the record.

The competent State administrative department in charge of maritime affairs shall be responsible for drawing up the contingency plans
to deal with nation-wide major vessel oil spill accidents on the sea and report to the competent administrative department in charge
of environment protection under the State Council for the record.

All units in the coastal areas where potential marine environment pollution accident may happen shall, in accordance with the State
regulations, draw up contingency plans to deal with pollution accidents and submit the plans to the local administrative department
in charge of environment protection and marine affairs for the record.

The coastal people’s governments above county level and their departments shall eliminate or reduce hazards in accordance with the
contingence plans in case of major marine pollution incidents.

Article 19

Departments invested by this law with power to conduct marine environment supervision and administration in accordance may conduct
joint law enforcement operations on the sea. In the cruise course of monitoring, whenever marine pollution accidents or act of violation
of the provisions of this law are discovered, they should strive to stop it, conduct on-the-spot investigation and collect evidence,
and have the right to adopt effective measures if necessary to prevent the spread of pollution, in the meantime report to relevant
competent department to handle the case.

Departments invested by this law with power to conduct marine environment supervision and administration have the right to conduct
on-the-spot inspections of the units and individuals discharging pollutants within the sphere of their jurisdiction. Those inspected
shall report the situation accurately and provide necessary data.

Inspection departments should keep confidential the technical secrets and business secrets of those inspected.

Chapter III Marine Ecological Conservation

Article 20

The State Council and local People’s Governments at the Provincial level shall adopt effective measures to protect such typical and
representative marine ecosystems as mangroves, coral reefs, coastal wetlands, islands, bays, estuaries important fishery waters,
etc, sea areas where rare and endangered marine organisms are naturally and densely distributed: marine organisms existence habitats
with important economic value and marine natural historic relics and natural landscapes with great scientific and cultural significance.

For marine ecosystems with important economic and social values that have been damaged, efforts shall be made to renovate and restore
them.

Article 21

Relevant departments of the State Council and coastal People’s Governments of Provincial level shall, in accordance with the need
for marine ecosystem conservation, delimit and establish marine nature reserves.

The establishment of national marine nature reserves shall be subject to the State Council for approval.

Article 22

In an area that possesses one of the following characteristics, a marine nature reserve may be established:

1.

Typical marine physiographic areas, representative natural ecosystem areas, as well as areas within which natural ecosystems have
been damaged to some extent, but may be recovered through efforts of protection;

2.

The areas with higher marine bio-diversity, or the areas where rare and endangered marine species are naturally and densely distributed;

3.

Sea areas, seashores, islands, coastal wetlands, estuaries, bays and the like with special protection values;

4.

Areas where marine natural remains of great scientific and cultural values are located, and

5.

Other areas which call for special protection.

Article 23

Areas with special geographic conditions, ecosystems, living or non-living resources and areas which call for special need in marine
development may establish marine special reserves, and special management shall be implemented by adopting effective protection measures
and scientific development methods.

Article 24

Exploration and exploitation of marine resources shall be rationally distributed in accordance with marine functional zonation scheme
and shall not bring about damages to marine ecological environment.

Article 25

The introduction of marine biological species shall subject to scientific assessment to avoid damages to marine ecosystems.

Article 26

The exploitation of resources of islands and surrounding sea areas shall adopt strict ecological protection measures and shall not
bring about damages to island topography, shore and beach, vegetation and ecological environment of the surrounding sea areas of
the islands.

Article 27

Coastal local People’s Governments at various levels shall, in accordance with the characteristics of respective local natural environments,
construct shore protection installations, coastal shelter belts, gardens and green land in the coastal cities and towns, and undertake
comprehensive treatment over the area with coastal erosion and saline water intrusion.

Destruction of shore protection installations, coastal shelter belts and gardens and green land in the coastal cities and towns are
forbidden.

Article 28

The State shall encourage the development of ecological fisheries, popularize multiform ecological fisheries production methods and
improve marine ecological conditions.

Environmental impact assessment shall be conducted in the new construction, reconstruction and extension of mariculture.

Mariculture shall determine breeding density in a scientific way, rationally feeding and apply manure and accurately use medicines,
so as to prevent pollution to the marine environment.

Chapter IV Prevention and Control of pollution Damage to the Marine Environrnent by Land-Based Pollutants

Article 29

The discharge of land-based pollutants into the sea shall strictly be conducted in compliance with the standards and relevant stipulations
laid down by the State and Localities.

Article 30

The sewage sea disposal project shall be determined in accordance with marine functional zonation scheme, marine dynamic conditions
and relevant regulations, and shall, after scientific assessment, report to the competent administrative departments in charge of
environment protection under the People’s Governments above the level of the City where the siting is made for examination and approval.

The competent administrative departments in charge of environrnent protection must, in approving the setting up of pollutant discharging
outlets into the sea, seek the opinions of the competent administrative departments in charge of maritime affairs and fisheries as
well as environment protection department of the Armed Forces.

No additional pollutant discharging outlets shall be allowed within marine nature reserves, important fishery waters, coastal historic
sites and scenic spots, and areas which call for special protection. In areas with conditions, pollution discharging outlets shall
be built in the deep sea to practise offshore discharging.

In the areas where natural conditions permit, the sea disposal outlet should sited in deep waters offshore. The installation of land-based
pollutant disposal outlets in deep waters offshore shall be determined in accordance with marine functional zonation scheme, marine
dynamic conditions and seabed conditions for engineering facilities. Specific measures shall be formulated by the State Council.

Article 31

The competent administrative departments in charge of environment protection and the competent administrative departments in charge
of water under the People’s Governments of the Provinces, Autonomous Regions and Municipalities directly under the Central Government
shall, in accordance with relevant laws on the prevention and control of water pollution, strengthen their control over rivers that
empty into the sea to prevent them from being polluted and ensure good water quality in the estuaries.

Article 32

Units discharging land-based pollutants shall report to the competent administrative department in charge of environment protection
land-based pollutant discharging facilities and treatment facilities under their possession, the kinds, quantities and density of
the discharged land-based pollutants under normal operation conditions, and shall provide relevant techniques and data related to
the prevention and control of marine environment pollution.

In case of any major changes in the kinds, quantities and density of the discharged land-based pollutants, timely report shall be
made.

Prior agreement of the competent administrative department in charge of environment protection must be obtained in dismantling or
laying idle land-based pollutant treatment installations.

Article 33

It is prohibited to discharge oils, acid liquids, alkaline liquids, hypertoxic waste liquids and waste water containing with high
and medium radioactivity into the sea.

The discharge of waste water containing with low radioactivity into the sea shall be strictly controlled; in case of a necessity to
discharge, it shall be conducted in strict compliance with the State regulations concerning radiation prevention.

The discharge of waste water containing persistent organic matters and waste water containing heavy metals shall be strictly controlled.

Article 34

No medical sewage carrying pathogens, domestic sewage and industrial waste water may be discharged into sea areas before properly
treated in keeping with relevant discharge standards of the State.

Article 35

The discharge of industrial waste water and domestic sewage containing organic and nutrient matters into bays, semi-closed seas and
other sea areas with low capacities of self-purification shall be strictly controlled.

Article 36

In discharging thermal waste water into sea areas, effective measures shall be taken to ensure that the water temperature in the adjacent
fishing areas is kept within marine environment standards of the State in order to avoid damage to fishery resources by thermal pollution.

Article 37

The use of chemical pesticides in coastal farmlands and forest farms shall conform to the State provisions and standards governing
the use of pesticides.

Coastal farmlands and forest farms shall use chemical fertilizer and plant growth regulators in a rational way.

Article 38

The abandoning, piling up and disposal of mining tailing, waste ores, cinders, garbage and other solid wastes along shore and beach
shall be conducted in accordance with relevant provisions of the “Law of the People’s Republic of China on the Prevention and Control
of Environment Pollution Caused by Solid Wastes.

Article 39

It is prohibited to transport dangerous wastes through the passage of internal waters and territorial seas of the People’s Republic
of China.

Prior written agreement shall be obtained from the competent administrative department in charge of environment protection under the
State Council for the transportation of dangerous wastes through the passage of other sea areas under the jurisdiction of the People’s
Republic of China.

Article 40

People’s Governments of coastal Cities shall construct and build urban sewage treatment plants or other facilitates for concentrated
sewage treatment in a planned way city sewage treatment plants or other sewage concentrated treatment facilities in a planned way
and strengthen comprehensive control and management of urban sewage.

Construction of marine sewage treatment engineering facilities shall be conducted in compliance with relevant regulations of the State.

Article 41

The State shall adopt necessary measures to prevent, reduce and control marine environment pollution damage from or through the atmosphere.

Chapter V Prevention and Control of Pollution Damage to the Marine Environment by Coastal Construction Projects

Article 42

New coastal construction projects, extensions or reconstruction projects must be conducted in compliance with relevant State regulations
governing environment protection in construction projects and shall channel the capital needed for the prevention and control of
pollution into construction project investment plan.

Within marine nature reserves, coastal historic sites and scenic spots, important fishery waters and other areas which call for special
protection that are delimited according to relevant laws, undertaking of coastal construction projects or any other operations that
may cause pollution to environment and damage to landscape shall be forbidden.

Article 43

Units in charge of coastal construction projects must, at the project feasibility study period, conduct scientific surveys of the
marine environment, select suitable sites in the light of natural and social conditions and formulate and submit environmental impact
assessment. The environmental impact assessment shall, after deliberation by the competent administrative department in charge of
marine affairs, be subject to the examination and approval by the competent administrative department in charge of environment protection.

The competent administrative department in charge of environment protection must, before approval of the environmental impact assessment,
seek the opinions of the competent administrative departments in charge of maritime affairs and fisheries as well as the environment
protection department of the Armed Forces.

Article 44

Environment protection installations of the coastal construction projects shall be designed, built and commissioned together with
the principle part of the construction project. No permission shall be given to the construction projects to be put into test (trial)
operation until the environment protection installations are examined and approved by the competent administrative department in
charge of environment protection; and no permission shall be given to the construction projects to be commissioned or used until
the environment protection installations are checked and accepted by the competent administrative department in charge of environment
protection or considered to be up to standards after having been checked and accepted.

Article 45

It is prohibited to construct new industrial projects that do not possess effective pollution treatment measures in the coastal land
areas, such as chemical pulp and paper mill, chemical plant, printing and dyeing mill, tannery, electroplating mill, brewery, oil
refinery, beach ship-dismembering as well as other projects which cause serious marine environment pollution.

Article 46

In building coastal construction projects, effective measures must be taken to protect wild animals and plants and their living environment
as well as marine fishery, resources under State and local particular protection.

It is strictly prohibited to mine sand and gravel along the shore In conducting open air the mining of placer and well drilling on
the coast to exploit seabed mineral resources, effective measures must be taken to prevent pollution to the marine environment.

Chapter VI Prevention and Control of Pollution Damage to the Marine Environment by Marine Construction Projects

Article 47

Marine construction projects must conform with marine functional zonation scheme, marine environment protection plan and relevant
State environment protection standards. At the project feasibility study period, marine environmental impact assessment statements
shall be formulated and submitted to the competent administrative department in charge of marine affairs for examination and approval;
in the meantime, report to the competent administrative department in charge of environment protection for the record and accept
the supervision of the competent administrative department in charge of environment protection.

The competent administrative department in charge of marine affairs must, before the examination and approval of the marine environmental
impact assessment statements, seek the opinions of the competent administrative departments in charge of maritime affairs and fisheries
as well as the environment protection department of the Armed Forces.

Article 48

Environment protection installations of marine construction projects shall be designed, built and commissioned together with the principle
part of the construction projects. No permission shall be given to the construction projects to be put into trial operation until
the environment protection installations are examined and approved by the competent administrative department in charge of environment
protection; and no permission shall be given to the construction projects to be commissioned and used until the environment protection
installations are checked and accepted by the competent administrative department in charge of environment protection or considered
to be up to standards after having been checked and accepted.

Prior agreement must be obtained from the competent administrative department in charge of environment protection to dismantle or
lay idle the environment protection installations.

Article 49

The building of marine construction projects must not use materials containing radioactivity in excess of standards or materials containing
toxic and harmful substance easy to dissolve in the water.

Article 50

In case construction of marine construction projects involves explosive operations, effective measures must be taken to protect marine
resources.

In the course of offshore oil exploration and exploitation as well as transportation of oil, effective measures must be taken to avoid
occurrence of oil spill.

Article 51

Oily waste water and oil mixtures from offshore oil drilling vessels and platforms for oil drilling and extraction may be discharged
into the sea only after proper treatment and up

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE HANDLING OF THE LAWS PREVIOUSLY IN FORCE IN MACAO IN ACCORDANCE WITH ARTICLE 145 OF THE BASIC LAW OF THE MACAO SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

Decision of the Standing Committee of the National People’s Congress Concerning the Handling of the Laws Previously in Force in Macao
in Accordance with Article 145 of the Basic Law of the Macao Special Administrative Region of the People’s Republic of China

(Adopted at the 12th Meeting of the Standing Committee of the Ninth National People’s Congress on October 31, 1999) 

It is provided in Article 145 of the Basic Law of the Macao Special Administrative Region of the People’s Republic of China (hereinafter
referred to as the Basic Law for short) that “Upon the establishment of the Macao Special Administrative Region, the laws previously
in force in Macao shall be adopted as laws of the Region except for those which the Standing Committee of the National People’s Congress
declares to be in contravention of this Law. If any laws are later discovered to be in contravention of this Law, they shall be amended
or cease to have force in accordance with the provisions of this Law and legal procedure.” Article 8 of the Basic Law stipulates,
“The laws, decrees, administrative regulations and other normative acts previously in force in Macao shall be maintained, except
for any that contravenes this Law, or subject to any amendment by the legislature or other relevant organs of the Macao Special Administrative
Region in accordance with legal procedures.” In accordance with the provisions mentioned above, the Standing Committee of the Ninth
National People’s Congress at its 12th Meeting deliberated the proposal of the Preparatory Committee for the Macao Special Administrative
Region on handling the laws previously in force in Macao and adopted the decision as follows: 

1. The laws, decrees, administrative regulations and other normative acts previously in force in Macao, except for any that contravenes
the Basic Law, shall be adopted as laws of the Macao Special Administrative Region. 

2. The laws previously in force in Macao, listed in Appendix I of this Decision, which are in contravention of the Basic Law shall
not be adopted as laws of the Macao Special Administrative Region. 

3.  The laws previously in force in Macao, listed in Appendix II of this Decision, which are in contravention of the Basic Law
shall not be adopted as laws of the Macao Special Administrative Region, however, before new laws are formulated by the Macao Special
Administrative Region, the relevant matters shall be handled in accordance with the principles prescribed in the Basic Law or by
adhering to the previous practices mutatis mutandis.  

4. The laws previously in force in Macao in which there are provisions that are in contravention of the Basic Law and which are therefore
listed in Appendix III of this Decision shall not be adopted as laws of the Macao Special Administrative Region. 

5. The laws previously in force in Macao, which have been adopted as laws of the Macao Special Administrative Region, shall be applied
as of December 20, 1999 with such modifications, adaptations, restrictions and exceptions as may be necessary for making them conform
with the status of Macao after the People’s Republic of China resumes the exercise of sovereignty over it and with the relevant provisions
of the Basic Law. 

In addition to the above-mentioned principle, the following provisions shall be conformed with when applying the laws previously
in force: 

(1) The preamble and signatures shall not be maintained or regarded as component parts of the laws of the Macao Special Administrative
Region.  

(2) Where the provisions relating to the diplomatic affairs of the Macao Special Administrative Region are found inconsistent with
the national laws coming into effect in the Macao Special Administrative Region, the national laws shall prevail, and the provisions
shall be made in keeping with the international rights enjoyed by the Central People’s Government and the international obligations
it undertakes. 

(3) No provisions which accord privileges to Portugal shall be maintained with the exception of the reciprocity provisions in connection
with Macao and Portugal. 

(4) The provisions relating to land ownership shall be construed in accordance with the provisions in Article 7 of the Basic Law. 

(5) The provision that the Portuguese language is superior to the Chinese language in terms of legal effect shall be construed as
that both the Chinese and Portuguese languages are the official languages; in provisions where it is required that the Portuguese
language or both the Portuguese and Chinese languages be used, the matter shall be dealt with in accordance with the provisions in
Article 9 of the Basic Law.   

(6) The provisions for assessing professional qualifications or qualifications for practice in the various professions, which embody
unfairness as a result of Portugal control over Macao, may, as a transitional arrangement, continue to be applied mutatis mutandis
in accordance with the provisions in Article 129 of the Basic Law before they are amended by the Macao Special Administrative Region. 

(7) The provisions regarding the capacities and posts of the Portuguese and other foreign nationals who are employed from outside
Macao as public servants shall be construed in accordance with the provisions in Article 99 of the Basic Law. 

(8) If the provisions in the Portuguese laws that are quoted in Macao laws do not jeopardize the sovereignty of the People’s Republic
of China or contravene the provisions of the Basic Law, they may, as a transitional arrangement, continue to be applied mutatis mutandis
before they are amended by the Macao Special Administrative Region. 

6. On condition that the provisions in Article 5 are conformed with, the substitution rules prescribed in Appendix IV of this Decision
shall be followed when interpreting or applying the words and expressions in the laws previously in force in Macao which are adopted
as laws of the Macao Special Administrative Region, except that they mean otherwise. 

7. If the laws previously in force in Macao which are adopted as laws of the Macao Special Administrative Region are later discovered
to be in contravention of the Basic Law, they may be amended or cease to have force in accordance with the provisions of the Basic
Law and legal procedure. 

All the Portuguese Laws which were previously in force in Macao, including the laws which were specially formulated for Macao by
the sovereignty authority of Portugal, shall cease to have force in the Macao Special Administrative Region with effect from December
20, 1999. 

Appendix I 

The following laws, decrees, administrative regulations and other normative acts previously in force in Macao are in contravention
of the Basic Law and therefore shall not be adopted as laws of the Macao Special Administrative Region: 

1. No.5/M Law governing the language level for admission to public service and promotion; 

2. Regulations on Election of the Legislative Council of Macao-No.4/91/M Law; 

3. Charter of Members of the Assembly and its Amendment (No.7/93/M, No.10/93/M and No.1/95/M Laws); 

4. No.42/82/M and No.36/89/M Decrees regarding establishment of various medals to cite significant deeds performed for this region; 

5. No.58/84/M Decree regarding the competent entity to negotiate with foreign public entities on contracts or agreements involving
public administration of this region; 

6. No.81/88/M and No.10/92/M Decrees regarding the retirement system for the Portuguese missionaries in the Far East; 

7. General Rules for the Advisory Committee and the System for Its Election-No.51/91/M Decree; 

8. No.11/92/M Decree regarding examination of the regulations on granting and issuing of passports in Macao; 

9. No.17/92/M, No.18/92/M, No.55/92/M, No.45/96/M, No.28/97/M, No.8/98/M and No.10/99/M Decrees regarding standardization of the
judicial system of Macao; 

10. No.5/93/M Decree regarding clarification of the application scope of the first paragraph of Article 13 of the General Rules for
the Public Administrators of Macao; 

11. No.20/99/M Decree regarding the interpretation on the issues relating to the Statement on Authorization of the Power of Final
Adjudication and the Power of Exclusive Adjudication by the Portuguese President to the Court of Macao; and 

12. Charter of the Legislative Council-No.1/93/M Resolution of the Legislative Council. 

     

Appendix II 

The following laws and decrees among the laws previously in force in Macao and contravene the Basic Law and therefore shall not be
adopted as laws of the Macao Special Administrative Region; however, before new laws are formulated by the Macao Special Administrative
Region, the relevant matters may be handled in accordance with the principles prescribed in the Basic Law and by referring to the
previous practices: 

1. No.6/86/M Law on regulating the public property system for the waters of Macao; 

2. No.60/92/M and No.37/95/M Decrees on setting down the rules and regulations for recruiting persons from the Republic of Portugal
to perform their duties in Macao; and 

3. No.19/99/M Decree regarding the new system for the examination and issue of the identity cards of Macao residents. 

Appendix III    

The following provisions of the laws and decrees among the laws previously in force in Macao contravene the Basic Law and therefore
shall not be adopted as provisions of laws of the Macao Special Administrative Region: 

1. The provisions in the Land Ratification Law (Law No. 6/80/M) on land selling and the provisions that the Portuguese legal corporations
that have the capacity for the right to own real estate shall have the right to obtain the special license for ownership or use of
land; 

2. The fifth paragraph of Article 18 of the Registration of Voters (Law No.10/88/M); 

3. The provisions in the Legal System of Urban Administrative District (Law No.24/88/M), which embody the nature of political power
in the urban authorities; 

4. The first paragraph of Article 59 and of Article 60 of the Law No.8/89/M on the legal system for audio- and visual-broadcast; 

5. Articles 2, 17 and 41 of the Senior Commission Against Corruption and Against Violation of Administrative Laws (Law No.11/90/M); 

6. Amendment by the Law No.1/96/M to the Election System for the Legislative Council of Macao; 

7. The first paragraph of Article 10 and the second paragraph of Article 21 of the Decree No.41/83/M on prescribing the rules for
preparing the forms of Statements for the gross budgets of the Region and for public accounting books and their implementation and
management, for preparing business accounting books and examining financial activities in public administration of Macao; 

8. Article 30 of the Decree No.90/88/M on the general requirements on; 

9. The provisions applicable to the Portuguese extradition law in Articles 38 and 42 of the Decree No.5/91/M on treating trafficking
and using narcotics as criminal acts and promoting anti-drug measures; 

10. Article 1 of the Decree No.19/92/M on revising the provisions on establishment of security forces; 

11. Item D of the first paragraph of Article 50 of the Highway Code (the Decree No.16/93/M); 

12. The provision on providing technical assistance for election in the Republic of Portugal and registration of voters in Item A
of Article 14 of the Decree No.23/94/M regarding the restructuring of the administrative and public service departments;13. The provision
on “the Memorial Day” in Article 44 of the Decree No.2/95/M regarding the restructuring of the inspection teams of the harbour police; 

14. The provision on “the Memorial Day” in Article 69 of the Decree No.3/95/M regarding the restructuring of the police department
for public security; 

15. The provision on “the Memorial Day” in Article 41 of the Decree No.4/95/M regarding the restructuring of the fire brigade; 

16. The fifth paragraph of Article 19 of the Decree No.15/95/M on examining and approving the organic statutes regarding the Port
Authority of Macao; 

17. The provisions on “the military personnel” in tables 5 and 6 attached to the Decree No.17/95/M on readjusting the tables attached
to the General Rules for the Public Administrators of Macao; and  

18. Item B of the second paragraph of Article 5 of the Decree No.55/95/M on revising the general system for entry into, stay and
settling down in Macao.   

Appendix IV 

The words and expressions in the laws previously in force in Macao which are adopted as laws of the Macao Special Administrative
Region, when construed or applied, shall be subject to the following substitution rules: 

1. Any reference to “Portugal,” “the State of Portugual,” “the Portuguese Government,” “the Republic,” “the President of the Republic,”
“the Government of the Republic” and “the ministers of the Government” and other similar names or expressions, if the provision involves
the affairs within the responsibilities of the Central Authorities and relationship between the Central Authorities and the Region
as prescribed by the Basic Law, shall be construed correspondingly as a reference to China, the Central Authorities or other competent
State organs, and under other circumstances, as the Government of the Macao Special Administrative Region. 

2. Any reference to “Macao”, “the Macao region”, “this region” and “the Macao legal territory” shall be construed as a reference
to “the Macao Special Administrative Region”. Any description of the territory of the Macao Special Administrative Region shall be
applicable after being correspondingly interpreted in accordance with the administrative division map of the Macao Special Administrative
Region promulgated by the State Council. 

3. Any reference to “the Court of the Legal Territory of Macao”, “the common jurisdiction court”, “the Administrative Court”, “the
High Court” and “the Commission of Prosecutors” or other similar names or expressions shall be correspondingly construed as a reference
to the Court of the Macao Special Administrative Region, the primary court, the Administrative Court, the intermediate court or the
procuratorate. 

4. Any reference to “the Governor” and “the Governor of Macao” shall be construed as a reference to the Chief Executive of the Macao
Special Administrative Region. 

5. Any reference to the Legislative Council, the Judiciary or the Executive Authorities and their staff or other similar names or
expressions shall be construed or applied correspondingly in accordance with the relevant provisions of the Basic Law. 

6. Any reference to “the People’s Republic of China”, “China” and “the State” or other similar names or expressions shall be construed
as a reference to the People’s Republic of China including Taiwan, Hong Kong and Macao; any reference to the Mainland, Taiwan, Hong
Kong and Macao, separately or together, shall be correspondingly construed as a reference to a component part of the People’s Republic
of China. 

7. Any reference to “foreign country” or “other State” and other similar words or expressions shall be construed as a reference to
any country or region other than the People’s Republic of China or, in accordance with the contents of the law or the provision,
shall be construed as a reference to “any place other than the Macao Special Administrative Region”; and any reference to “foreign
national” or other similar words or expressions shall be construed as a reference to any person other than the citizen of the People’s
Republic of China. 

8. Any reference to “the Court of Audit” and “the Senior Commission Against Corruption and Against Violation of Administrative Laws”
or other similar names or expressions shall be construed as a reference to “the Commission of Audit” and “the Independent Commission
Against Corruption”.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.




DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF COMPANY LAW

Category  LEGAL PERSONS AND ECONOMIC ORGANIZATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-12-25 Effective Date  1999-12-25  


Decision of the Standing Committee of the National People’s Congress Regarding the Revision of Company Law of the People’s Republic
of China

Ful Text The 13th Session of the Standing Committee of the Ninth National
Appedix: Company Law of the People’s Republic of China (Revision 1999)
Contents
Chapter I  General Provisions
Chapter II  Incorporation and Organizational Structure
Chapter III  Incorporation and Organizational Structure
Section 3  Board of Directors, and Manager
Chapter IV  Issue and Transfer of Shares of Joint Stock Limited Companies
Chapter V  Company Bonds
Chapter VI  Financial Affairs and Accounting of Companies
Chapter VII  Merger and Division of Companies
Chapter VIII  Bankruptcy, Dissolution and Liquidation of Companies
Chapter IX  Branches of Foreign Companies
Chpater X  Legal Liability
Chapter XI  Supplementary Provisions

(Adopted at the 13th Session of the Standing Committee of the Ninth

National People’s Congress on December 25, 1999 and promulgated by the
Order No.29 of the President of the People’s Republic of China on December
25, 1999)
Ful Text The 13th Session of the Standing Committee of the Ninth National
People’s Congress, having considered the proposal of the State Council
regarding the Amendment to Company Law of the People’s Republic of China,
decides to make the following revisions to Company Law of the People’s
Republic of China. 1. Article 67 shall be amended as: “the supervisory board of a wholly
state-owned company is composed of the staff appointed by the State
Council or the organs and departments authorized by the State Council,
and it includes the participation of representatives of staff and workers
of a company.  A supervisory board is composed of no less than three
members.  A supervisory board shall exercise the functions and powers
provided by the first and second items of Paragraph 1 of Article 54 of
this Law and other functions and powers provided by the State Council”.  
“Supervisors shall attend the meeting of a supervisory board as non-voting
participants”.  “Directors, managers and responsible persons in charge of
the financial affairs of a company may not serve concurrently as
supervisors”. 2. A new paragraph shall be added to Article 229 as paragraph 2: To a
joint stock limited company of new technological achievements, its
proportion of registered capital covered by the fund of the appraised value
of the investment of a sponsor in the form of industrial property and non-
patented technology, and the conditions of issuing new shares by the
company and applying to have its shares listed and traded shall be provided
by the State Council otherwise.  ?  Company Law of the People’s Republic of China shall be republished after
being correspondingly amended according to the Decision.?  The qualified joint stock limited company of new technological

achievements supported in its entry into a securities market for direct
financing shall be in the interest of the development of industry of new
technological achievements.  It shall adhere to state industrial policies
and conform with the requirement to new technological achievements for the
joint stock limited company of new technological achievements financing
development capital by applying capital market.  The stock of a joint stock
limited company of new technology achievements listed for transactions,
in accordance with its characteristics, shall be traded through the
individual organized system within the present stock exchange company.  
The work shall be conducted step by step in a positive, reliable and
planned way in view of the lack of experience for the work, and with
considerable risk.?  This Decision shall come into effective as of the date of promulgation.  ?
Appedix: Company Law of the People’s Republic of China (Revision 1999)
(Adopted at the Fifth Meeting of the Standing Committee of the Eighth
National People’s Congress on December 29, 1993.  Revised based on the
dicision of the 13th Session of the Standing Committee of the Ninth
National People’s Congress regarding the revision to Company Law of the
People’s Republic of China on December 25, 1999)
Contents

    Chapter I  General Provisions

    Chapter II  Incorporation and Organizational Structure of          

                Limited Liability Companies

        Section 1  Incorporation

        Section 2  Organizational Structure

        Section 3  Wholly State-owned Companies

    Chapter III  Incorporation and Organizational Structure of Joint  

                 Stock Limited Companies

        Section 1  Incorporation

        Section 2  Shareholders’ General Meetings

        Section 3  Board of Directors, and Manager

        Section 4  Supervisory Board

    Chapter IV  Issue and Transfer of Shares of Joint Stock Limited Companies

        Section 1  Issue of Shares

        Section 2  Transfer of Shares

        Section 3  Listed Companies

    Chapter V  Company Bonds

    Chapter VI  Financial Affairs and Accounting of Companies

    Chapter VII  Merger and Division of Companies

    Chapter VIII  Bankruptcy, Dissolution and Liquidation of Companies

    Chapter IX  Branches of Foreign Companies

    Chapter X  Legal Liability

    Chapter XI  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated in accordance with the
Constitution of the People’s Republic of China in order to meet the
needs of establishing a modern enterprise system, to standardize
the organization and activities of companies, to protect the
legitimate rights and interests of companies, shareholders and
creditors, to maintain social and economic order and to promote the
development of the socialist market economy.

    Article 2 The  term “company” mentioned in this Law refers to
a limited liability company or a joint stock limited company
incorporated within the territory of the People’s Republic of China
in accordance with this Law.

    Article 3  A “limited liability company” or “joint stock
limited company” is an enterprise legal person.

    In the case of a limited liability company, shareholders shall
assume liability towards the company to the extent of their
respective capital contributions, and the company shall be liable
for its debts to the extent of all its assets.

    In the case of a joint stock limited company, its total
capital shall be divided into equal shares, shareholders shall
assume liability towards the company to the extent of their
respective shareholdings, and the company shall be liable for its
debts to the extent of all its assets.

    Article 4  The shareholders of a company shall, in their
capacity of contributors of capital, enjoy such rights of owners as
benefitting from assets of the company, making major decisions and
selecting managerial personnel in accordance with the amount of their respective capital investment in the company.

    A company shall enjoy the right to the entire property of the
legal person formed by the investments of the shareholders and
shall possess civil rights and bear the civil liabilities in
accordance with the law.

    The ownership of State-owned assets in a company shall vest in
the State.

    Article 5  A company shall, with all its legal person assets,
operate independently and be responsible for its own profits and
losses according to law.

    A company shall, under the macro-adjustment and control of the
State, organize its production and operation independently in
accordance with market demand for the purpose of raising economic
benefits and labour productivity and maintaining and increasing the
value of its assets.

    Article 6  An internal management mechanism shall be
implemented within companies, which is characterized by clear
definition of powers and responsibilities, scientific management
and combination of encouragement and restraint.

    Article 7  State-owned enterprises restructured to form
companies must transform their operating mechanism, gradually
produce an inventory of their assets and verify their funds,
delimit their property rights, clear off their claims and debts,
evaluate their assets and establish a standard internal management
mechanism in accordance with the conditions and requirements set by
laws, administrative rules and regulations.

    Article 8  Incorporation of limited liability companies or
joint stock limited companies must meet the conditions stipulated
by the present Law. Companies meeting the conditions set by this
Law shall be registered as limited liability companies or joint
stock limited companies; while companies failing to meet the
conditions set by this Law shall not be registered as limited
liability companies or joint stock limited companies.

    Where laws or administrative rules and regulations provide
that incorporation of companies must be subject to examination and
approval, the procedures of examination and approval shall be
completed according to law prior to the registration of such
companies.

    Article 9  A limited liability company established according to
this Law must clearly indicate the words “limited liability
company” in its name.

    A joint stock limited company established according to this
Law must clearly indicate the words “joint stock limited company”
in its name.

    Article 10  A company’s domicile shall be the place where its
main administrative organization is located.

    Article 11  Articles of association must be formulated in
accordance with this Law when a company is incorporated. A
company’s articles of association shall have binding force on the
company, its shareholders, directors, supervisors and managers.

    A company’s scope of business shall be defined in its articles
of association and registered in accordance with the law. Items
within the company’s “scope of business” that are subject to
restrictions under laws, administrative rules and regulations shall
be approved in accordance with the law.

    Companies shall engage in business activities within their
registered scope of business. A company may change its scope of business by amending its articles of association in accordance with
statutory procedures and making such amendments registered with the
Company Registration Authority.

    Article 12  A company may invest in other limited liability
companies or joint stock limited companies and shall assume
liability towards the company so invested in to the extent of such
capital contributions.

    In case a company, other than an investment company or a
holding company as specified by the State Council, invests in other
limited liability companies or joint stock limited companies, the
aggregated amount of such investments shall not exceed fifty
percent of its net assets; after the initial investment, the
increase therein resulting from capitalization of the profit
derived from the company invested in shall not be included.

    Article 13  A company may establish branches, which shall not
possess the status of enterprise legal persons and whose civil
liabilities shall be borne by the company.

    A company may establish subsidiaries, which shall possess the
status of enterprise legal perons, and shall independently bear
civil liabilities according to law.

    Article 14  A company must, when engaging in business
activities, abide by the law, observe professional ethics,
strengthen the construction of socialist culture and ideology and
accept supervision of the government and the public.

    The legitimate rights and interests of companies shall be
protected by the law and shall be inviolable.

    Article 15  Companies must protect the lawful rights and
interests of their staff and workers, and strengthen labour
protection so as to achieve safety in production.

    Companies shall apply various forms to strengthen professional
education and on-the-job training of their staff and workers so as
to improve their quality.

    Article 16  Company’s staff and workers shall, in accordance
with the law, organize a trade union to carry out the trade union
activities and protect the lawful rights and interests of the staff
and workers. The company shall provide its trade union with
conditions necessary for carrying out its activities.

    Wholly State-owned companies and limited liability companies
invested in and established by two or more State-owned enterprises
or by two or more other State-owned investment entities shall,
through staff and workers’ congresses or other forms, practise
democratic management in accordance with the provisions of the
Constitution and relevant laws.

    Article 17  The grass-root organizations of the Communist Party
of China in companies shall carry out their activities in
accordance with the Constitution of the Communist Party of China.

    Article 18  The present Law shall apply to limited liability
companies with foreign investment. Where laws concerning
Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures and foreign-funded enterprises provides otherwise,
such provision shall prevail.
Chapter II  Incorporation and Organizational Structure
of Limited Liability Companies

    Section 1  Incorporation

    Article 19  The following conditions must be fulfilled for the
incorporation of a limited liability company:

    (1) the number of shareholders conforms to the statutory
number;

    (2) the capital contributions of the shareholders reach the
statutory minimum amount of capital;

    (3) the shareholders have jointly formulated the articles of association of the company ;

    (4) the company has name and an organizational structure
established in compliance with the requirements for a limited
liability company; and

    (5) there are fixed premises and necessary conditions for
production and operation.

    Article 20  A limited liability company shall be jointly
invested in and incorporated by not less than two and not more than
fifty shareholders.

    State-authorized investment institutions or departments
authorized by the State may independently invest in and establish
wholly State-owned limited liability companies.

    Article 21  If State-owned enterprises established prior to the
implementation of this Law comply with the conditions stipulated in
this Law for the incorporation of limited liability companies, they
may, in the case of enterprises with a single investing entity, be
restructured as wholly State-owned limited liability companies in
accordance with this Law, or in the case of enterprises with
multiple investing entities, be restructured as limited liability
companies as specified in the first paragraph of the preceding
Article.

     The implementation procedures and specific measures for
restructuring State-owned enterprises as companies shall be
formulated separately by the State Council.

    Article 22  The articles of association of limited liability
companies shall specify the following particulars:

    (1) the name and domicile of the company;

    (2) the scope of business of the company;

    (3) the registered capital of the company;

    (4) the names or post_titles of the shareholders;

    (5) the rights and obligations of the shareholders;

    (6) the method and amount of capital contributions by the
shareholders;

    (7) the conditions for transfer of capital contributions by
shareholders;

    (8) the organization of the company, its method of creation,
functions and powers and the rules of procedure;

    (9) the legal representative of the company;

    (10) the reasons for dissolution of the company and method of liquidation; and

    (11) other items which the shareholders deem necessary to be
specified.

    The shareholders shall sign and affix their seals to the
company’s articles of association.

    Article 23  The registered capital of a limited liability
company shall be the amount of the paid-up capital contributions of all its shareholders as registered with the Company Registration
Authority.

    The registered capital of a limited liability company shall be
no less than the following minima:

    (1) RMB 500,000 yuan for a company engaged mainly in production
and operation;

    (2) RMB 500,000 yuan for a company engaged mainly in commodity
wholesale;

    (3) RMB 300,000 yuan for a company engaged mainly in
commercial retailing; and

    (4) RMB 100,000 yuan for a company engaged in science and
technology development, consultancy or services.

    Where the minimum registered capital of a limited liability
company in specified trades needs to be higher than those
stipulated in the preceding paragraph, it shall be stipulated by
the laws and administrative rules and regulations separately.

    Article 24  A shareholder may make its capital contributions to
a company in currency or by contributing material objects,
industrial property rights, non-patented technology and land use
rights at their appraised value. The material objects, industrial
property rights, non-patented technology or land use rights to be
contributed as capital must undergo an asset valuation and
verification, and shall not be overvalued or undervalued. The
appraisal and valuation of land use rights shall be handled in
accordance with the laws and administrative rules and regulations.

    The investment in the form of industrial property rights and
non-patented technology at their appraised value shall not exceed
twenty percent of the registered capital of a limited liability
company, except where special State regulations inrespect of the
application of high and new technological achievement provide
otherwise.

    Article 25  Each shareholder shall make in full the amount of the capital contribution subscribed for under the articles of association
of the company. Where a shareholder makes its capital
contribution in currency, it shall deposit the full amount of such
capital contribution in crurrency in the interim bank account
opened by the limited liability company to be established. Where a
shareholder makes its capital contribution in the form of material
objects, industrial property rights, non-patented technology or
land use rights, the transfer procedures for the property rights
shall be handled in accordance with the law.

    Shareholders failing to make the capital contributions they
subscribed for in accordance with the preceding paragraph shall be
liable for breach of contract towards the shareholders who have
made in full their capital contributions.

    Article 26  After all shareholders have made their capital
contributions in full, such contributions must be verified by a
statutory capital verification institution which shall issue
capital verification certificates.

    Article 27  After the total capital contributions of the
shareholders have been verified by a statutory capital verification
institution, application shall be made to the Company Registration
Authority for registration of the incorporation of the company by
a representative designated by all the shareholders or by an agent
jointly entrusted by them, who shall submit such documents as an
application for registration, the articles of association and the
capital verification certificate.

    Where the examination and approval of the relevant authorities
is required by the laws or administrative rules and regulations,
the approval documents shall be submitted on application for
registration of incorporation.

    The Company Registration Authority shall grant registration
and issue a business licence to a company that meets the
requirements stipulated in this Law; the Company Registration
Authority shall not register a company failing to meet the
requirements stipulated in this Law.

    The date of the issuance of the company business license shall
be the date of the incorporation of a limited liability company.

    Article 28  Where, after the incorporation of a limited
liability company, it is discovered that the actual value of the
material objects, industrial property rights, non-patented
technology or land use rights contributed as capital is notably
less than the value stated in the articles of association, the
shareholders that made such contributions shall make up the
discrepancy. Those who are shareholders at the time of the
incorporation of the company shall bear joint and several liability
therefor.

    Article 29  Where branches are established simultaneously with
the incorporation of a limited liability company, application for
registration of the branches established shall be made to, and
business licences obtained from the Company Registration Authority.

    Where a limited liability company establishes branches after
its incorporation, the company’s legal representatiive shall apply
for the registration to, and obtain business licences from the
Company Registration Authority.

    Article 30  After a limited liability company has been
incorporated, it shall issue capital contribution certificates to
its shareholders.

    A capital contribution certificate shall specify the following
items:

    (1) the name of the company;

    (2) the registration date of the comany;

    (3) the registered capital of the company;

    (4) the name or post_title of the shareholder, the amount and date
of its capital contribution; and

    (5) the serial number of the capital contribution certificate
and the date of its verification and issuance.

    A capital contribution certificate shall bear the seal of the
company on it.

    Article 31  A limited liability company shall prepare a roster
of its shareholders with the following items therein:

    (1) the names or post_titles and domiciles of the shareholders;

    (2) the amounts of capital contributions of the shareholders;
and

    (3) the serial numbers of the capital contribution
certificates.

    Article 32  A shareholder shall have the right to look up the
minutes of shareholders’ meetings and the financial and accounting
reports of the company.

    Article 33  Shareholders shall draw dividends in proportion to
their capital contributions. Where a company increases capital, the
existing shareholders shall have priority in subscription for new
shares.

    Article 34  Once a company is registered, its shareholders may
not withdraw their capital contributions.

    Article 35  The shareholders of a company may assign among
themselves all or part of their capital contributions.

    Where a shareholder intends to assign its capital contribution
to persons who are not shareholders, the consent of over half of all the shareholders must be secured. Those shareholders
disapproving the assignment shall purchase the capital contribution
to be assigned. If such shareholders do not make the purchase, they
shall be deemed to have consented to the assignment.

    Other shareholders shall, under identical terms, have priority
in purchasing the capital contribution to be assigned with the
consent of the shareholders.

    Article 36  After a shareholder has assigned its capital
contribution according to law, the company shall record the name or
post_title and domicile of the consignee and the amount of the capital
contribution assigned in the roster of the shareholders.

    Section 2  Organizational Structure

    Article 37  The shareholders’ meeting of a limited liability
company shall be composed of all the shareholders. The
shareholders’ meeting shall be the organ of power of the company
and shall exercise its functions and powers in accordance with this
Law.

    Article 38  The shareholders’ meeting shall exercise the
following functions and powers:

    (1) to decide on the business policy and investment plan of the company;

    (2) to elect and recall members of the board of directors and
to decide on matters concerning the remuneration of directors;

    (3) to elect and recall supervisors appointed from among the
shareholders’ representatives, and to decide on matters concerning
the remuneration of supervisors;

    (4) to examine and approve reports of the board of directors;

    (5) to examine and approve reports of the supervisory board or
supervisors;

    (6) to examine and approve the annual financial budget plan
and final accounts plan of the company;

    (7) to examine and approve plans for profit distribution of the company and plans for making up losses;

    (8) to adopt resolutions on the increase or reduction of the
registered capital of the company;

    (9) to adopt resolutions on the issuance of company bonds;

    (10) to adopt resolutions on the assignment of capital
contribution by a shareholder to a person other than the
shareholders;

    (11) to adopt resolutions on matters such as the merger,
division, transformation, dissolution and liquidation of the
company; and

    (12) to amend the articles of association of the company.

    Article 39  The rules of deliberation and voting procedures of the shareholders’ meeting shall, except where provided for by this
Law, be stipulated by the articles of association of the company.

    Resolutions of the shareholders’ meeting on the increase or
reduction of the registered capital, the division, merger,
dissolution, or transformation of the company must be adopted by
shareholders of the company representing two-thirds or more of the
voting rights.

    Article 40  A company may amend its articles of association. A
resolution on the amendment of the articles of association must be
adopted by shareholders of the company representing two-thirds or
more of the voting rights.

    Article 41  Shareholders shall exercise their voting rights at
the shareholders’

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...