Mr Ding and his friends intended to establish a jo...

Mr Ding and his friends intended to establish a joint stock company in international trade business and drafted a business proposal for further discussions with potential investors. Among other things the proposal contained the following items:

(a) The proposed joint stock company would be invested by nine sponsors, four sponsors from China and five sponsors from other Asian countries. Such arrangements would be of benefit to expand the Asian market. (3 marks)

(b) The registered capital of the company would be RMB 100 million yuan, among which RMB 30 million yuan would be subscribed by nine sponsors and the remaining RMB 70 million yuan would be subscribed through an initial public offering (IPO). (4 marks)

(c) All capital contributions by sponsors must be made in the form. of currency, as the joint stock company is to be incorporated through IPO. (3 marks)

Required:

Explain whether the above items (a), (b) and (c) are in conformity with the relevant provisions of the Company Law.

Note: The mark allocation is shown against each item.