In relation to the Enterprise Bankruptcy Law of China:
(a) explain under what circumstances and when the community liabilities will take place; (3 marks)
(b) state when the community liabilities can be cleared in the process of bankruptcy liquidation; (2 marks)
(c) state at least TWO items which should be regarded as community liabilities. (5 marks)
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Shenhua Company Ltd (Shenhua) has been buying products from Kangyi Chemicals Company (Kangyi Chemicals) for more than one year. By the end of 2013, the two parties negotiated to settle the previous business transactions and confirmed that Shenhua owed an outstanding amount of RMB 800,000 yuan to Kangyi Chemicals.
Several days later, Shenhua entered into an agreement with its holding company, namely Shenhua Holdings, to transfer all its debts of RMB 800,000 yuan due. In doing so, Shenhua neither notified Kangyi Chemicals, nor got a consent from Kangyi Chemicals.
Having discovered this information, Kangyi Chemicals sent an email to Shenhua Holdings to inquire whether Shenhua’s debts had been transferred to Shenhua Holdings. Shenhua Holdings acknowledged the transfer but did not promise to settle the debts as a new debtor.
Kangyi Chemicals filed a lawsuit against Shenhua Holdings for the unsettled RMB 800,000 yuan. Shenhua Holdings submitted the following defences: First, the transfer agreement between Shenhua and Shenhua Holdings was an invalid one as Shenhua failed to get prior consent, as required by the law, from Kangyi Chemicals before the completion of transfer. Second, the goods delivered by Kangyi Chemicals in the last six months contained material defects which caused loss and damage to Shenhua as the original counterparty.
Required:
Answer the following questions in accordance with the Contract Law, and give your reasons for your answers:
(a) state whether the transfer agreement between Shenhua and Shenhua Holdings was a valid one; (6 marks)
(b) state whether Shenhua Holdings was entitled to submit its defence on the ground of the defects in the goods delivered by Kangyi Chemicals to Shenhua. (4 marks)
In relation to the Labour Contract Law of China:
(a) state the various circumstances under which a labour contract is NOT permitted to contain a probation clause; (2 marks)
(b) state THREE conditions under which an employer may dissolve a labour contract during the period of probation; (6 marks)
(c) state what an employer should do if it dissolves a labour contract during the period of probation. (2 marks)
制作外部链接的时候,可以在“链接”文本框中直接用键盘输人该网页在Internet上的______,并且包括所使用的______。
In relation to the Company Law of China:
(a) explain the term actual controller; (3 marks)
(b) state the statutory voting requirement for a limited liability company to provide a guarantee to its shareholders or actual controller; (5 marks)
(c) state the legal consequences when the relevant provision of the articles of association is inconsistent with the statutory voting requirements to provide a guarantee to its shareholders or actual controller. (2 marks)