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9 In October 2008 Ronger Properties Joint Stock Co successfully issued corporate bonds of RMB 12 million yuan for
three years. By the end of 2010 the net assets of Ronger Properties Joint Stock Co were RMB 80 million yuan. During
the past two years it has been able to repay the interests due for the corporate bonds.
In order to expand its business, the board of directors of Ronger Properties Joint Stock Co adopted a resolution
intending to issue another set of corporate bonds to the public investors.
Required:
Answer the following questions in accordance with the relevant provisions of the Securities Law of China, and
give your reasons for your answer:
(a) State the maximum amount of corporate bonds Ronger Properties Joint Stock Co could issue for the proposed
issuance. (5 marks)
(b) State whether the proposed issuance of corporate bonds should be underwritten by an underwriting
syndicate. (4 marks)
(c) State the statutory period of underwriting for the proposed issuance. (1 mark)
(10 marks)
10 Due to the failure to settle the debts due, Jianshe Garment Trading Co Ltd (Jianshe Co) was declared bankrupt by its
creditors. In October 2010 the court rendered an order to accept the application of bankruptcy and designated a
bankruptcy administrator. During the process of bankruptcy liquidation the bankruptcy administrator found that
Jianshe Co had given up a credit of RMB 200,000 yuan owed by its affiliate enterprise in August 2009.
The bankruptcy administrator also found that some shareholders of Jianshe Co failed to made full capital contributions
as prescribed in the agreement of incorporation.
Required:
Answer the following questions in accordance with the Enterprise Bankruptcy Law of China, and give your
reasons for your answer:
(a) (i) State whether the action of giving up credit can be revoked during the process of liquidation;
(4 marks)
(ii) State whether the court should grant an order to revoke the act of giving up credit. (3 marks)
(b) State how to deal with the matter of the lack of full capital contributions by some of the shareholders of
Jianshe Co. (3 marks)
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