To regulate the stock-rights contribution regisration, the State Administration for Industry and Commerce recently issued the Administration Measures for Stock-Rights Contribution Registration, which will take into effect as of March 1, 2009.
The stock-rights contribution refers to the act of the investor who holds the equity stake of the established limited liability companies or joint stock companies in China and makes it as contribution and invest in other domestic limited liability companies or joint stock companies.
In accordance with the Administration Measures for Stock-Rights Contribution Registration, the equity stake as contribution should be featured by clear right belonging and complete right capacity and can be transferred according to law. The equity stakes with the following situations shall not be made contributions: the registered capital of the holding companies not paid completely; the equity stakes established as pignus; equity stakes frozen according to law; equity stakes not transferred by article of association of holding companies and the laws, the administrative regulations or the determination of the State Council provide that shareholders of holding companies should report to be approved but fail to while transferring equity stake.