There are specific requirements for the management structure of an equity joint venture. Every equity joint venture shall set up a board of directors, of which the number of members of shall be determined through negotiation by the parties involved in the venture and shall be stipulated in the equity joint venture contract and articles of association. The members of the board of directors shall be chosen and replaced by the parties to the venture. The chairman and the vice-chairman (vice-chairmen) shall be decided through negotiation by the parties to the venture or shall be elected by members of the board of directors. If the Chinese investor assumes the office of the chairman, then the foreign investor, or the other party, will assume the office of the vice-chairman and vice versa.
The board of directors shall decide the major issues of the equity joint venture in accordance with the principle of equality and mutual benefit. The offices of general manager and vice-general manager(s) (or factory director and vice director(s)) shall be assumed separately by the parties to the venture.
