What is the organization of Sino-foreign joint ventures?

Sino-foreign joint ventures do not have any board of shareholders; they are organized with a Board of Directors and Management Office, in other words, they are governed by a General Manager Responsibility system under the leadership of the Board of Directors. The Board of Directors is the supreme authority of the joint venture, which approves and decides all major matters of the joint venture according to its articles.

The Board of Directors of Sino-foreign joint ventures shall not be fewer than 3 persons. The Chairman and Vice Chairman are determined by the parties of the joint venture or elected by the Board of Directors. If one party is appointed as the Chairman of a Sino-foreign joint venture, the other party will serve as Vice Chairman. The distribution of the number of directors is decided by the parties of the venture referring to the proportion of investment, and directors are appointed and replaced by the parties in accordance with the allocation. Directors serve for a 4-year term and can be reappointed. The Chairman is the legal representative of the joint venture. When the Chairman is unable to perform his duties, he shall authorize the Deputy Chairman or any other director to represent the joint venture externally.