A co-operative enterprise shall register with the taxation organ for tax purposes within 30 days of its establishment.

Article 7

If, during the term of co-operation, the Chinese and foreign partners agree through consultation to make a major amendment to the co-operative enterprise contract, the matter shall be reported to the examining and approving organ for approval. If the amendment involves items for official industrial or commercial registration or tax registration, procedures for registration of the amendment shall be conducted with the administration for industry and commerce or the taxation organ.

Article 8

Investment or terms for co-operation by Chinese and foreign partners may be in the form of cash, kind, land-use rights, industrial property rights, non-patented technology and other property rights.

Article 9

The Chinese and foreign partners shall discharge their obligations both to subscribe their investment in full and to provide conditions for co-operation on schedule, in accordance with the provisions of the laws and regulations and the provisions agreed on in the co-operative enterprise contract. In the event of failure to fulfil such obligations, the administration for industry and commerce shall stipulate a deadline for fulfillment and, if obligations are still not fulfilled by the stipulated date, the examining and approving organ and the administration for industry and commerce shall handle the matter in accordance with the relevant regulations.

The investment or terms for co-operation to be contributed by Chinese and foreign partners shall be examined and verified by an accountant registered in China or a relevant organ and a certificate shall be issued.

Article 10

If any one party to Sino-foreign co-operation wishes to assign, in full or in part, its rights and liabilities as prescribed in the co-operative enterprise contract, the agreement of the other party shall be obtained and the matter shall be reported to the examining and approving organ for approval.

Article 11

A co-operative enterprise shall conduct business management activities in accordance with the approved co-operative enterprise contract and articles of association and its right of autonomy in the area of business management shall not be interfered with.

Article 12

A co-operative enterprise shall set up a board of directors, or a joint management body, to make decisions on major issues involving the co-operative enterprise in accordance with the provisions of the co-operative enterprise contract or articles of association. One party of the Chinese and foreign partners shall appoint a person to hold the position of chairman of the board of directors or head of the joint management body and a person appointed by the other party shall hold the position of deputy chairman of the board of directors or deputy head. The board of directors or the joint management body may decide on the appointment or engagement of a general manager to conduct the daily business management of the co-operative enterprise. The general manager shall be responsible to the board of directors or the joint management body.