[Abstract]

In 2018, our lawyers accepted the entrustment of a company to provide special legal services for the equity transfer project of the traditional manufacturing enterprise (hereinafter referred to as "the target company") in a development zone.

[Key words] access to foreign investment assets disposal industry

[project information]

The target company is a traditional manufacturing enterprise with foreign investment established in the 1990s, and its main business is research and development and production of metal tank. With the policy adjustment of the state and local for regional development and introduction of enterprises, the development of traditional manufacturing industry is limited in the local area. The client intends to transfer the equity of the target company to the outside world, and entrust the exchange to assist in the legal services related to the equity transfer of the target company.

[project characteristics]

The project itself has the following characteristics:

1. local government has special requirements for the newly introduced enterprise type and operation capacity. The target company is located in an economic development zone and belongs to local government investment and investment enterprises. However, with the adjustment of the orientation of the Development Zone in this year, the development zone has not allowed enterprises in traditional manufacturing fields to settle in. Although the project is a equity transfer project, due to the client's intention to transfer all the shares of the target company, local management department has put forward special requirements for the subsequent business of the equity transferee and transferee of the project. The qualification and conditions of the transferee shall be selected according to the special requirements of local management department.

2. the target company belongs to a foreign-funded enterprise, and its transfer of equity shall comply with special provisions. According to the laws of China, if the foreign-invested enterprises make the equity changes, the relevant provisions on the alteration and filing of the equity changes of the investors of the foreign-invested enterprises shall be referred to. According to the provisions of the provisions of the provisions on the change of the equity of investors in foreign-invested enterprises, the procedures for the change of equity can be handled only after the approval authority establishing the enterprise has approved the change of the equity of the investor.

[lawyer response]

In order to complete the project, our lawyers have successively held several meetings with the client, and adopted various ways of face-to-face communication, telephone communication and network communication to determine the initial requirements of the client for the equity transferee. On this basis, our lawyers went to the management department of the project location to communicate with relevant personnel for many times, understood the requirements of local management departments for the newly introduced enterprises, finally formed a screening list of equity transferee, which provided beneficial support for the client to select the equity transferee.

[achievements and summary of legal services]

As of December, 2018, our lawyers have issued special legal opinions on the project, formulated the screening submission and standards of the transferee, and issued the equity transfer scheme.