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Corporate Service - China

Question

Q&A Regarding Partnership Enterprise (4)

Answer
Q:
Can partners divide the property of the partnership enterprise?
A:
The partners can't request the division of the property of the partnership enterprise before it is liquidated; Except as otherwise provided by relevant laws and regulations.

Q:
How does the partnership enterprise carry out partnership affairs?
A:
Partners have the same rights to carry out partnership affairs. According to the partnership agreement or the decision of all partners, one or more partners may be entrusted to represent the partnership enterprise and carry out partnership affairs.

Q:
What items of the partnership enterprise need the unanimous consent of all partners?
A:
Unless otherwise agreed in the partnership agreement, the following items of the partnership enterprise shall be unanimously agreed by all partners:
  1. Change the name of the partnership enterprise;
  2. Change the business scope or the location of the main business premises of the partnership enterprise;
  3. Dispose of the real estate of the partnership enterprise;
  4. Transfer or dispose of the intellectual property rights and other property rights of the partnership enterprise;
  5. Providing guarantee for others in the name of the partnership enterprise;
  6. Employ persons other than partners as the management personnel of the partnership.

Q:
What are the restrictions on the partners of the partnership enterprise?
A: Partners shall not engage in business competing with this partnership enterprise on their own or in cooperation with others. Unless otherwise agreed in the partnership agreement or unanimously agreed by all partners, partners shall not conduct transactions with the partnership enterprise. Partners shall not engage in activities that harm the interests of the partnership enterprise.

Q:
Can partners decrease their capital contribution to the partnership enterprise?
A: Partners may increase or decrease their capital contribution to the partnership enterprise in accordance with the partnership agreement or upon the decision of all partners.

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