Conduct a thorough due diligence of your China business to ward off misbehaviors

I have not realized the necessity of doing such a checkup till a client approached me just recently requesting me to help with such a due diligene on their WFOE in China with a view to seeing and understanding whether the business is being operated in good manners and in compliance with Chinese laws and to finding out whether the management team have done their…

Manage your manager

A client came to my office telling a story that was shocking to an outsider. The client is a foreigner who has set up a WFOE in Shanghai two years ago producing cleaning products. As a foreigner unable to read any Chinese, she had to hire a Chinese manager as her right hand. In the WFOE, the manager is below one person only, the client, and above all other staff. …

Corporate governance structure of foreign invested companies

Chinese foreign investment regulation originated earlier than the enactment of the first Company Law of China (1994) and this together with other reasons gave rise to the irregular corporate governance structure of foreign invested enterprises (which term generally excludes foreign invested companies limited by shares) where there was generally no …