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Is the unnotarized agreement on investment and dividend distribution valid

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Is the unnotarized agreement on investment and dividend distribution valid


        

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  • 2024-06-15 11:01:50

    The notarized investment and share dividend agreement is valid. A legally formed contract takes effect from the time of its establishment. Notarization is not a prerequisite for the effectiveness of the agreement. The parties to the agreement have full capacity for civil conduct, express their true intentions, do not violate the law, and do not violate the public order and good customs.

    Legal basis

    Article 502 of the Civil Code of the People's Republic of China [Effective time of the contract] A legally formed contract shall become effective from the time of its formation, unless otherwise provided by law or agreed by the parties.
    Where, in accordance with the provisions of laws and administrative regulations, a contract shall go through the formalities of approval, etc., such provisions shall apply. Failure to go through approval and other procedures that affect the effectiveness of the contract shall not affect the effectiveness of the obligation clauses in the contract such as performance of approval and relevant clauses. If the party who should go through the formalities of application for approval fails to perform its obligations, the other party may request it to bear the responsibility for breach of such obligations.
    In accordance with the provisions of laws and administrative regulations, the provisions of the preceding paragraph shall apply to the modification, transfer, dissolution and other circumstances of a contract where approval and other formalities shall be handled.

    A***

    2024-06-15 11:01:50

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