Author name: wensenleke

Shareholders Only Have Limited Liability? Not Always True

That shareholders only bear limited liability within the scope of their investment into the company is an essential idea of modern corporation system. However we have seen more and more cases in mainland China’s legal practice in “piercing the corporate veil”. If the creditors of a limited liability company can prove that there is no …

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Go for litigations with less cost and less burden

On September 12, 2016, the Supreme People’s Court promulgated its Several Opinions on Further Promoting the Separation of Complicated Cases from Simple Ones and Optimizing the Allocation of Judicial Resources. By virtue of these opinions, the Supreme Court calls for the establishment of the speedy trial in administrative litigations as well as utilizing and developing …

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4 Major Considerations before Establishing a Direct Sales Operation in China

We’ve been getting a lot of inquiries recently from foreign companies seeking to break into the Direct Sales market in China. The Direct Sales license is one of the most challenging operational licenses to obtain in China in term of requirements for the investor, products and capital input. Based on past experience, the following is …

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Don’t do silly things towards your employees when you decide to lay them off

We have discussed the idea of avoiding dispute during dissolution procedures. We suggested you to hold an open meeting with all employees if possible, to announce the dissolution decision and your lay-off plans. You would also have to decide a sound amount of severance payment for those employees whose employment would be terminated soon.  This …

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Avoid labor dispute when the dissolution procedure starts

We have experienced attorneys dealing with laying off employees issues during a client’s dissolution procedures. As we all know, during this period of time, labor dispute regarding severance payment, paid leave or occupational illness and injury compensation and personal profile handover and transfer usually occurs. From legal practice point of view, several things should be …

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The Number One Thing You Must Do To Sell Your Product in China

Everyone knows about China’s large population, and large, growing middle class. Foreign companies are falling over themselves to get into this market with quality branded products. Typically they bring their foreign Trademarks and brand names with them. While we are sure your Trademark are very clever and unique in your native language, none of that …

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