Having introduced the theme on “corporate compliance”, today it is necessary to address some other aspects. As stated in the previous entry, FCPA influences, or at least it should help in establishing the best practice when doing business with a Chinese counterpart. The key to understanding China FCPA risk, and thus the key to ensuring …
Implementing a “corporate compliance culture” in China Read More »
An investor, as an alternative to acquiring the equity, may purchase directly part or all of the business and assets of a Chinese target company. Compared to equity acquisitions this represents a great advantage; in fact the foreign investor can selectively acquire only the useful assets of the target company (i.e. acquisition of a branch …
Assets Acquisitions versus Equity Acquisitions and the use of the Due Diligence Read More »
The entry today is about capital contribution and debt-to equity ratios. When a foreign investor subscribes for the new equity in a domestic company (a non- foreign invested company), the existing shareholders of the domestic company must contribute no less than 20% of the new equity at the time the company applies for its new …
Subscription of New Equity and Max Permitted Debt-to-Equity Ratios Read More »
“English News Mongolia” reported on February 5, 2013 that criminal records check requirements have been softened. http://english.news.mn/content/133213.shtml In their article, “English News Mongolia” reports: “In accordance with a decree by Kh.Temuujin, the Minister for Justice a criminal record check is no longer automatically required. The Minister believes that the requirement to have a criminal record …
Today I will discuss about the effectiveness of the transfer Agreement, in fact sometimes this topic can be a little confusing. One of the main feature of the rules governing equity transfer concerns when an equity transfer agreement (in an “equity” acquisition) is deemed to be effective. Under PRC law, an equity transfer agreement is …
On January 13, 2013, the “Wall Street Journal’s” online publication, “China Real Time Report” posted a report with the headline, “ Rare Victory for U.S. Investor in China Reverse Merger Company ”. The article points out just how difficult it can be for a foreign investor in a Chinese company to prevail against that company …
As stressed in a previous entry, both in an equity or asset acquisition the seller and the buyer in evaluating the target company they must use a valuation conducted by a properly established asset appraiser in the PRC as the basis for agreeing the transaction price ( see in this sense Art. 14 of the …
The prestigious Union International des Advocates (UIA) has invited Lehman, Lee & Xu Law Firm General Director Edward Lehman to speak at its 57 th Congress meeting in Macau. The dates for this congress are October 31 to November 4, 2013. http://www.uianet.org/en/evenement/type-46987/57th-congress The 57 th UIA Conference will be the first one held in China. …
Union International des Advocates Invites Edward Lehman to Speak in Macau Read More »
We already discussed some basic concepts related to M&A in China. Today I would like to move forward and to spend some words about the evaluation of your Chinese target company. First it must be clear that one of the major effects of the previously mentioned M&A Regulations 2006 is the valuation requirements for all …
Lehman, Lee & Xu is the winner of the “IAIR LEGAL AWARDS” 3 rd annual edition, in the following category: Excellence in Legal Practice – Special Category – Regional. IAIR Awards is a global prize for excellences in global finance and global economy. Lehman, Lee & Xu is one of the most well known Chinese …
Lehman, Lee & Xu is the winner of the “IAIR LEGAL AWARDS” 3rd annual edition Read More »
