The purpose of this entry today is to highlight some important aspects on the protection of the minority interest when structuring an investment in China. The choice of foreign investors on the most appropriate form of investment to be adopted in China mainly depends on their business strategies, financial resources available, nature of the investment, …
The Big 4, also known as the ‘Final 4’, are the four largest international accounting and professional services firms. The Big 4 audit the majority of all publicly-traded companies. PricewaterhouseCoopers, Ernst & Young, Deloitte Touche Tohmatsu and KPMG make up the Big Four. This is impressive, and we all admire these firms, but here at …
An alternative investment option to WFOEs and JVs is a foreign-invested company limited by shares (FICLS). Therefore, today the present entry is about the Foreign Company Limited by Share. This instrument is rarely considered because it is a little bit more complicated to structure, and because even though big companies are considering China the next …
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Corporate governance of a CJV Today, as anticipated, with the present entry I am going to complete the exposition about the functioning of this investment vehicle, i.e. the CJV, adding some information about the corporate governance. Regardless of whether or not the CJV has the ‘status’ of a legal person, it must be administrated jointly …
Investment vehicles: the Contractual Joint Venture (Part 2 of 2) Read More »
Introduction to the Sino-Foreign Contractual (or “co-operative”) Joint Venture (CJV ) Today this entry is dedicated to the so called “contractual joint venture.” Subsequent to the equity joint ventures, the contractual joint ventures (CJV) were introduced with the structure of a partnership. The use of a CJV has introduced a more flexible investment instrument in …
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Western businesses it appears are turning their eyes to Cambodia and away from China. As China becomes less and less attractive, Cambodia is beginning to reap the benefit. The “New York Times” “Global Business” site ( www.nytimes.com ) posted an article on April 8, 2013, which examines a trend that may well continue and spread …
I read an article today posted on the “Wall Street Journal” website, “China Times” ( www.wsj.com ) April 9, 2013, that reports a new take on Chinese companies that copy western technology. The article, entitled, “Defending China’s Imitators as “Bandit” Innovators” by Alex Frangos gives the reader some insight into how copying western technology may …
As already stressed the foreign investor has at his disposal several instruments to establish a presence in China. We already treated the WFOE ( http://blawg.lehmanlaw.com/wordpress/?p=1686 ) the FICE ( http://blawg.lehmanlaw.com/wordpress/?p=1695 ) and introduced the theme of M&A. Today it is the turn of the Joint Venture. First of all it is necessary to remind that …
Investment vehicles: the Equity Joint Venture (Part 1 of 2) Read More »
Corporate governance of an EJV Today, as promised, I am going to complete the exposition about the functioning of the EJV adding some very important information about the corporate governance. With regards to the governance of a EJV, it is necessary to point out that the Board of Directors represents the highest organ of power …
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There is no doubt that e-commerce represents one of the key strategies to expand or to accelerate the sales in China. Small, medium-sized and big enterprises can trade their products and services efficiently through this mean, and it is not surprising e-commerce is expected to grow rapidly in China. Indeed, a report by Forrester Research …
