Term Termination Dissolution and Liquidation Clause Samples
The 'Term, Termination, Dissolution and Liquidation' clause defines the duration of the agreement and sets out the conditions under which the contract may end, either by reaching its natural expiration, by mutual agreement, or due to specific events such as breach or insolvency. It typically outlines the procedures for giving notice of termination, the steps required to dissolve the contractual relationship, and the process for liquidating any remaining assets or obligations. This clause ensures that all parties understand how and when the agreement can be brought to a close, providing a clear framework for winding down operations and settling outstanding matters, thereby reducing uncertainty and potential disputes at the end of the contractual relationship.
Term Termination Dissolution and Liquidation. Article 39 The duration of the Company shall be [***] commencing from the date on which the business license of the Company is issued. An application for the extension of duration, proposed by one Party and unanimously approved by the Board of Directors, shall be submitted to the examination and approval authority six months prior to the expiration date of the term of the Company.
40.1 The Company shall be dissolved and the JVC Contract shall be terminated in case any of the following situations or accidents occurs:
i. the term of JVC Contract expires and is not extended.
ii. any Party delays to perform its obligations to contribute in full its subscription of the registered capital pursuant to JVC Contract and fails to perform the said obligations within [***] commencing from the date specified in the JVC Contract.
iii. the Company does not generate, as reported by its audited financial statements, a net profit for [***], after consultation, the Parties fail to agree on how to improve satisfactorily the financial situation of the Company.
iv. due to an event of force majeure as stipulated herein, the Company is unable to continue to carry out operations for [***] from the day the event of force majeure occurs and the Parties fail to agree on how to improve the situation.
v. the Company is ordered to close in accordance with _________(Country) laws because of serious violations of _________(Country) laws.
vi. the operation and business as approved by the relevant departments of Chinese government are prohibited or significantly restricted by any government authority.
40.2 In the event any of the conditions set forth in (ii) above occurs, any nonbreaching Party shall have the right to unilaterally apply to the examination and approval authority to terminate the JVC Contract and dissolve the Company.
40.3 In the event any of the conditions set forth in any of (iii) through (vi) above occurs, either Party shall have the right to notify the other Parties in writing and request that the JVC Contract be terminated and the Company be dissolved. Upon such request, the Board of Directors shall within thirty (30) days of such written request, adopt resolutions for such termination, and the Company shall apply to the relevant _________(Country) authorities for approval of such termination and dissolution. Each Party shall cause the directors it has appointed to vote in favor of such termination resolutions.
40.4 In case of termination of the JVC Contract, the followi...
Term Termination Dissolution and Liquidation