Article 26
"Individual businesses" refers to business run by individual citizens who have been lawfully registered and approved to engage in industrial or commercial operation within the sphere permitted by law. An individual business may adopt a shop name.
Article 27
"Leaseholding farm households" refers to members of a rural collective economic organization who engage in commodity production under a contract and within the spheres permitted by law.
Article 28
The legitimate rights and interests of individual businesses and leaseholding farm households shall be protected by law.
Article 29
The debts of an individual business or a leaseholding farm household shall be secured with the individual s property if the business is operated by an individual and with the family s property if the business is operated by a family.
Section 5 Individual Partnership
Article 30
"Individual partnership" refers to two or more citizens associated in a business and working together, with each providing funds, material objects, techniques and so on according to an agreement.
Article 31
Partners shall make a written agreement covering the funds each is to provide, the distribution of profits, the responsibility for debts, the entering into and withdrawal from partnership, the ending of partnership and other such matters.
Article 32
The property provided by the partners shall be under their unified management and use. The property accumulated in a partnership operation shall belong to all the partners.
Article 33
An individual partnership may adopt a shop name; it shall be approved and registered in accordance with the law and conduct business operations within the range as approved and registered.
Article 34
The operational activities of an individual partnership shall be decided jointly by the partners, who each shall have the right to carry out and supervise those activities. The partners may elect a responsible person.
All partners shall bear civil liability for the operational activities of the responsible person and other personnel.
Article 35
A partnership s debts shall be secured with the partners property in proportion to their respective contributions to the investment or according to the agreement made. Partners shall undertake joint liability for their partnership s debts, except as otherwise stipulated by law. Any
partner who overpays his share of the partnership s debts shall have the right to claim compensation from the other partners.
Chapter III Legal Persons
Section 1 General Stipulations
Article 36
A legal person shall be an organization that has capacity for civil rights and capacity for civil conduct and independently enjoys civil rights and
assumes civil obligations in accordance with the law.
A legal person s capacity for civil rights and capacity for civil conduct shall begin when the legal person is established and shall end when the legal person terminates.
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