Non Credit Customers May Not Sign Contracts

Case: Zhang Mou, the dealer, sued a feed enterprise in his location, claiming that the use of the enterprise's feed caused widespread death of the fry of farmers, and demanded that the enterprise compensate direct economic losses of 80000 yuan and indirect economic losses. Since the enterprise did not extend credit to it, no contract was signed. Zhang sued in the local court on the ground of product quality infringement. The enterprise went back and forth several times in response to the lawsuit, which was very passive.

analysis: sales contract It should not only be created for credit, but should sign contracts with all customers involved in transactions. Because the sales contract not only stipulates the payment time and method, but also the product quality standards Delivery mode , inspection method, time of raising objection, liability for breach of contract and other important contents. Without signing the contract Content agreement Unclear. If the above dealers or farmers suffer losses, they may be said to be the reason for the unqualified product quality at any time, so they can ask for the return of goods or claim compensation for the sky high price. Therefore, it is recommended that all feed enterprises sign sales contracts with customers who have transactions, clearly agree on the purchase and sale process, and prevent such possible disputes in advance, so that they will not be tired of dealing with the situation in the case.

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A joint stock limited company is an enterprise legal person established in accordance with the Company Law of the People's Republic of China, with all its capital divided into equal shares, shareholders who are responsible for the company to the extent of their shares, and the company which is responsible for its debts with all its assets.

Conditions for a joint stock limited company

（1） If the number of promoters meets the quorum, there should be more than five promoters;? What's more, it's better to have a better quality? If the initiator is an enterprise, a copy of the Business License affixed with the official seal of the enterprise shall be issued; If the initiator is a public institution, a copy of the Certificate of Public Institution Legal Person affixed with the official seal of the institution shall be issued; If the initiator is a social organization, a copy of the Social Organization Legal Person Registration Certificate affixed with the official seal of the unit shall be issued; If the shareholder is a trade union, a copy of the legal person certificate of the trade union affixed with the official seal of the unit and the approval document of the trade union above the district and county level approving the investment shall be submitted. If the shareholder is a natural person, a copy of the identity card or other legal identity certificate of that person shall be issued.

Please note that the following units are not qualified for investment or have limited investment capacity:

The qualifications of legal representatives, directors, supervisors, managers and heads of branches.

The person locked into the "warning information system" of Beijing credit information system cannot act as the legal representative, director, supervisor, manager or person in charge of the branch during the lock in period.

（2） More than half of the five promoters must have domicile in China;

（3） The shares subscribed by the sponsors and publicly offered have reached the minimum legal capital;

（4） The minimum registered capital of a joint stock limited company is 10 million yuan; Specific industries are subject to relevant regulations.

Where the registered capital of a joint stock limited company exceeds the minimum amount prescribed by laws and regulations, it may be paid in installments. If the excess is paid in a lump sum, it shall be paid in full within one year from the date of establishment of the company. If the excess part is paid in two installments, the first installment shall pay 50% of the unpaid part within 6 months from the date of establishment of the company, and the second installment shall be paid in full within 3 years from the date of establishment of the company.??

A joint-stock company limited by shares that operates pre licensed projects announced by the Beijing Municipal People's Government (see the Catalogue of Beijing Enterprise Registration License Projects printed by the Beijing Municipal Administration for Industry and Commerce for specific projects) shall pay all registered capital when going through the establishment registration, and shall not pay by installments.

（5） The issuance and preparation of shares comply with the law. The establishment of a joint stock limited company must be approved by the department authorized by the State Council or the provincial people's government;

（6） A joint stock limited company must have a board of directors with five to nineteen members;

（7） A joint stock limited company must set up a board of supervisors with no fewer than three members.