Mr Liu entered into an agreement to buy a second-hand car from Mr Feng at a price of RMB 5

In relation to the Securities Law of China:

(a) state, and explain the duties of, the relevant personnel of a listed stock company who are responsible for the disclosure of information in the company’s regular reports; (4 marks)

(b) state the legal liabilities of an issuer, a listed stock company and the relevant personnel for failing to disclose information, or disclosing false, misleading or omitted information. (6 marks)

In relation to the Enterprise Bankruptcy Law of China:

(a) state the rules on the circumstances to declare the creditor’s right, including what is not required to be declared; (4 marks)

(b) state the rules with respect to joint and several creditors/debtors during the course of declaration of the creditor’s right. (6 marks)

In relation to the Company Law of China:

(a) state the circumstances under which a joint stock company may purchase its own shares; (6 marks)

(b) state the reasons why a joint stock company is generally not allowed to purchase its own shares, except under special circumstances. (4 marks)

In relation to the Contract Law of China:

(a) explain the term ‘liquidated damages’, and state the legal nature of them; (2 marks)

(b) state the rules relating to the award of liquidated damages; (6 marks)

(c) state the rule relating to the award of liquidated damages for delay in performing the contractual obligation. (2 marks)

In relation to the Labour Contract Law of China:

(a) explain the circumstances that make a labour contract invalid or partially invalid in the process of concluding it; (3 marks)

(b) explain the provisions contained in a labour contract that would be regarded as invalid or partially invalid; (3 marks)

(c) state the provisions concerning liquidated damages for breach of a labour contract by an employee that may be incorporated into a labour contract. (4 marks)

In relation to the Property Law of China:

(a) explain the term ‘right to use the land for construction’; (3 marks)

(b) state the forms to establish the right to use the land for construction; (3 marks)

(c) state the various forms of disposal in relation to the right to use the land for construction by the owner of such a right. (4 marks)

In relation to the basic legal system of China:

(a) explain the roles of judicial interpretations made by the Supreme People’s Court; (6 marks)

(b) state any one of the rules regarding the validity of a contract provided for in the judicial interpretations on the Contract Law by the Supreme People’s Court. (4 marks)

s declared bankrupt by its creditors. In October 2010 the court rendered an order to accept the application of bankruptcy and designated a bankruptcy administrator. During the process of bankruptcy liquidation the bankruptcy administrator found that Jianshe Co had given up a credit of RMB 200,000 yuan owed by its affiliate enterprise in August 2009.

The bankruptcy administrator also found that some shareholders of Jianshe Co failed to made full capital contributions as prescribed in the agreement of incorporation.

Required:

Answer the following questions in accordance with the Enterprise Bankruptcy Law of China, and give your reasons for your answer:

(a) (i) State whether the action of giving up credit can be revoked during the process of liquidation; (4 marks)

(ii) State whether the court should grant an order to revoke the act of giving up credit. (3 marks)

(b) State how to deal with the matter of the lack of full capital contributions by some of the shareholders of Jianshe Co. (3 marks)

B 12 million yuan for three years. By the end of 2010 the net assets of Ronger Properties Joint Stock Co were RMB 80 million yuan. During the past two years it has been able to repay the interests due for the corporate bonds.

In order to expand its business, the board of directors of Ronger Properties Joint Stock Co adopted a resolution intending to issue another set of corporate bonds to the public investors.

Required:

Answer the following questions in accordance with the relevant provisions of the Securities Law of China, and give your reasons for your answer:

(a) State the maximum amount of corporate bonds Ronger Properties Joint Stock Co could issue for the proposed issuance. (5 marks)

(b) State whether the proposed issuance of corporate bonds should be underwritten by an underwriting syndicate. (4 marks)

(c) State the statutory period of underwriting for the proposed issuance. (1 mark)

RMB 20 million yuan for its expansion programme. Yado Steel provided its office building as property mortgaged for the debt, and made the registration as required. Mr Ding, one of the shareholders of Yado Steel, placed a guarantee letter of general liability in favour of Industry Bank.

Due to poor performance, Yado Steel failed to repay the debt when it came to maturity. Meanwhile, Industry Bank, under a restructuring plan, transferred the credit of RMB 20 million yuan together with the right of pledge to Oriental Assets Management Co (OAM). It also made a written notice to Yado Steel and Mr Ding, but failed to transfer the right of mortgage to OAM. On the contrary, Industry Bank concluded an agreement with Yado Steel before it went bankrupt, and settled other debts owed by the latter through the sale of the office building as mortgaged for the loan. Having found this fact, OAM, as a transferee of the credit, requested the court to order Mr Ding to bear its guarantor’s liability for the debt. Mr Ding asserted that he was a pledger with a general liability and would be responsible for the debt only if the things mortgaged could not satisfy the debt.

Required:

Answer the following questions in accordance with the relevant provisions of the Property Law and the Contract Law, and give your reasons for your answer:

(a) State whether the defence of Mr Ding should be supported by the court. (6 marks)

(b) State what was the cause of this dispute between OAM and Industry Bank. (4 marks)