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China Finance, Inc. Announces Plan for Reinstatement or Rein

文章出处:AG88 发表时间:2018-11-08



NEW YORK, Jan. 4 /Xinhua-PRNewswire/ -- China Finance, Inc., a provider of financial support and services for China's large and rapidly expanding class of small and medium enterprises (SMEs), today announced that, as a result of inadvertent failures to timely file annual reports in the state of Utah, China Finance has been administratively dissolved as a corporation under Utah law. Because of the administrative dissolution, which China Finance learned was deemed effective as of July 14, 2005, China Finance is currently conducting its business as an unincorporated business association. No aspect of China Finance's business operations has changed as a result of this development.

China Finance is in the process of seeking reinstatement as a corporation with the state of Utah by, among other things, filing an administrative appeal and taking other appropriate steps in an effort to retroactively reverse the administrative dissolution. Because the period within which reinstatement would have been automatic haAAAApired, it is possible that the request for reinstatement might not be granted. In that event, China Finance will take appropriate steps to reincorporate through merger, conversion or other appropriate means as soon as practicable. While the administrative dissolution creates certain complications as discussed below, it has not adversely affected China Finance'AAAAAAAmentation of its business plan, operating results or financial condition.

One complication, if China Finance is not reinstated in Utah, is that its shareholders will not have had limited liability after the date of administrative dissolution. However, as a practical matter, China Finance does not believe that that situation would create actual exposure risks for shareholders. China Finance's business is primarily conducted through an indirect wholly-owned Chinese subsidiary company, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation ("Shenzhen"). As a result, China Finance has limited direct business obligations and liabilities (primarily only payments for leases of space and equipment, and services provided by legal and compliance service providers). Accordingly, China Finance's shareholders (in the event they were deemed not to have limited liability) would have similarly limited exposure. Moreover, China Finance is not aware of any past or present actions, obligations, litigation or threatened litigation that may cause shareholders to incur liability, nor does China Finance believe that any will arise in the near future.

Another complication is that federal or state tax authorities might determine that China Finance should be treated, from the date of administrative dissolution, as a partnership for tax purposes, rather than as a corporation. China Finance believes that such a determination is unlikely. Moreover, China Finance believes that, if such an unlikely determination is made, the resulting tax consequences to shareholders would not be significantly adverse, if adverse at all. In such a case, China Finance would prepare and provide shareholders analysis of applicable tax consequences when and if appropriate, depending upon the outcome of its efforts to obtain reinstatement or reincorporation.

Mr. Zhiyong Xu, China Finance's President and Chief Executive Officer, observed: "Obviously, we regret this unfortunate administrative lapse, which we now know occurred years ago due to inadequate controls for essentially ministerial functions. Fortunately, none of the consequences have affected our business model or operations, and we have addressed the administrative issues that led to this situation and otherwise enhanced our overall compliance regime for regulatory matters."

In connection with considering the implications of administrative dissolution, the management of China Finance has also reviewed China Finance's current balance sheet, and believes that its current assets, which include certain real estate located in China and restricted and unrestricted shares of publicly traded U.S. companies held by Shenzhen and China Finance's directly wholly-owned subsidiary, Value Global International, a British Virgin Islands company, significantly exceed amounts needed to pay its current obligations and liabilities.

ABOUT CHINA FINANCE, INC.

China Finance provides financial support and services - primarily in the form of surety guarantees, loan guarantees, or short-term loans - to privately owned SMEs when they seek access to capital or to be acquired by a United States reporting company. China Finance provides its services through its wholly-owned indirect subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation, which is located in the financial district of Shenzhen, China.

本文源自: 环亚娱乐