Haworth & Lexon Law Newsletter (31)

Haworth & Lexon Law Newsletter
No.4 2004(Total:No.31)May.20th, 2004
Edited by Haworth & Lexon

“Haworth & Lexon Law Newsletter” is issued every month, mainly introducing the legal change in the fields of Corporate, Securities, Foreign investment, Intellectual property rights, International trade etc. with necessary comment. All the comments do not mean the legal opinion of our firm and the firm does not have any legal liability for such comment. Should you have any interest in any topics or any questions please feel free to contact the firm. You will be expected to have satisfactory response from the professional attorney of our firm.

Guidelines

★ Latest News about Haworth & Lexon:
Haworth & Lexon is Retained As the Regular Counsel by the Famous Internet Website "Comic Net".
★ Shenzhen Stock Exchange gets the approval for the Launch of SME Board.
★ Ministry of Construction Promulgated Governing Regula-
-tion on Foreign Construction Designing Enterprise.
★ New Regulation is promulgated for Cell Phone Message Market.
★ Latest Laws and Regulations:
1. Governing Regulation on Legal Counsel of State Owned Enterprise has been promulgated.
2. Interim Regulation of Insurance Asset Management Company will become enforceable after June 2004.
3. Application Regulation of Electronic Patent is Promulgated and Brought into Force by State Intellectual Property Office
4. State ICA Issued Emergency Prohibition Notice on Using the Name of State Government in Commercial Advertisement.


Haworth & Lexon is Retained As the Regular Counsel by the Famous Internet Website "Comic Net".

Comic Net is the first website technology company providing on line reading service in China. The company has many signed cartoon artists, what insures its cartoons being the original ones. Comic Net regards the training of new figure, promoting original, Chinese cartoon as its own responsibility. Haworth & Lexon is retained as its regular counsel by Comic Net recently, and would provide legal service in the aspects of IP, employment and Internet Service.

Shenzhen Stock Exchange gets the approval for the Launch of SME Board.

Approved by State Counsel, Chinese Securities Regulatory Commis-
-sion issued the approval for Launching SME Board (Small and Medium Enterprise) in the Main Board of Shenzhen Stock Exchange(SSE), and the implementing proposal for SME Board.

According to the implement proposal, The SME Board should go under the same laws and regulations with the present market, and should apply to the same IPO standards, which sets for the enterprises of Main Board. However, the enterprises going for IPOs would be the enterprises that have a relatively negotiable small capital stock, and are high in both the increasing possibility and technology. The scale and manner for issuing would be especially decided by the demand of the market.

The SME Board will apply to more stricter information disclosure system compared with the Main Board in consideration of the small capital stock of the enterprises: 1.establishing a regular audit system for the usage of the raised capital; 2.establishing a annual reporting meeting system concerning the development, operation and financial conditions of the companies; 3.establishing a regular disclosure system of the shares holding situations shareholders; 4.establishing a governing system for IPO companies and the intermediate organization; 5.establishing a system for the quick transfer of withdrawal stock.


Ministry of Construction Promulgated the Governing Regulation on Foreign Construction Designing Enterprise.

Ministry of Construction Promulgated the Interim Governing Regulation on Foreign Construction Designing Enterprise on 10 May 2004, which would become enforceable after 30 days.

Foreign Enterprises, which provide service for initial design (fundamental design), detailed design, should comply with this Regulation. Such foreign enterprise should cooperate with at least one local design enterprise while providing service at home, and could only provide service within the business scope of the local design enterprise. These foreign enterprises should submit business license, Bank letter of credit, insurance certificate and quality certificate to the development enterprise for qualification verification. The Regulation also made special stipulations on the chargement and tax aspects for foreign design enterprise.

New Regulation is promulgated for Cell Phone Message Market.

The Notice on Governing Cell Phone of Message Market was promulgated by Ministry of Information and became enforceable on April 15.The Notice made detailed stipulations on that cell phone communication enterprises and information service enterprises should remind customers with the fee standard and recession method, and the monthly service should be further confirmed by customers.

Governing Regulation on Legal Counsel of State Owned Enterprise has been promulgated.

The Regulation stipulates that the legal counsel of state owned enterprise should past the National Legal Counsel Qualification Exam, and also made detailed stipulations on the limits of counsel's authority, general procedure and work time limits.

Interim Regulation of Insurance Asset Management Company will become enforceable after June 2004.

The Regulation was made on the purpose of strengthen the government of Insurance Asset Management Company. The Regulation also made detailed regulations on the conditions of establishment, changing and termination, the business scope, capital operation method and basic principal

Application Regulation of Electronic Patent is Promulgated and Brought into Force by State Intellectual Property Office.

This Regulation stipulates the detailed regulations in electronic application for patent, patent for utility model and patent right and the online payment for application fee.

State ICA Issued Emergency Prohibition Notice on Using the Name of State Government in Commercial Advertisement.

Promulgated on Apr 10 2004, the Notice stipulates that the name of State Government such as the Communist Party, People's Congress, Court, Procurator's Office, Army and Police Station could not been used in Commercial Advertisement. There would be an overall inspection soon.