|
|
| (1454 intermediate revisions not shown) |
| Line 1: |
Line 1: |
| - | Most Foreign Invested Enterprises (FIEs) are governed by a board of directors and senior management. An exception exists for Cooperative Joint Ventures that the parties have chosen not to incorporate (these are governed by a management committee).
| + | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Pellentesque sed purus nisl. Mauris varius neque id arcu tempor porttitor. Nulla lacinia, eros non vestibulum dignissim, quam nunc ullamcorper dolor, nec egestas metus massa accumsan orci. In faucibus efficitur dolor vel porttitor. Donec lacinia sapien sed erat iaculis, eget mollis magna molestie. Quisque porta enim orci, eget euismod sem vulputate eu. Morbi eleifend mauris odio, congue egestas nulla semper id. Donec enim tellus, molestie vitae convallis non, dignissim at dui. Sed eget ante ut dui iaculis tempus eu et nisi. Nullam finibus erat quis mi egestas efficitur. |
| | | | |
| - | Powers: The Chairman, as the legal representative of the enterprise, has the power to legally bind the enterprise and bears considerable duty for its acts and
| + | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nulla hendrerit auctor purus, eget mollis lorem fringilla sed. Nunc sodales ullamcorper lorem eget commodo. Pellentesque velit metus, mollis et ex id, interdum tempor nibh. Vivamus eget metus sem. Duis consectetur arcu non risus tempus fringilla. Duis fermentum diam a enim vestibulum posuere. Nullam tempus laoreet molestie. |
| | | | |
| - | omissions. Most of the powers and func...
| + | Etiam placerat augue quis justo lobortis, at pellentesque ligula consectetur. Nam scelerisque a erat ac mollis. Nulla egestas est non arcu tincidunt, quis mattis mauris lacinia. Quisque finibus purus lacinia interdum interdum. Proin quis viverra magna, et rhoncus felis. Nam eget leo vel mauris venenatis tincidunt ut vel quam. Nunc sodales venenatis dui, sit amet elementum arcu hendrerit at. |
| - | | + | |
| - | Board of Directors
| + | |
| - | | + | |
| - | Most Foreign Invested Enterprises (FIEs) are governed by a board of directors and senior management. An exception exists for Cooperative Joint Ventures that the parties have selected not to incorporate (these are governed by a management committee).
| + | |
| - | | + | |
| - | Powers: The Chairman, as the legal representative of the enterprise, has the energy to legally bind the enterprise and bears substantial responsibility for its acts and
| + | |
| - | | + | |
| - | omissions. Most of the powers and functions of the board are set forth in the Articles of Association and in the Joint Venture Contract.
| + | |
| - | | + | |
| - | Quantity of Directors: The board of directors of both Wholly Foreign Owned Enterprises (WFOEs) and Joint Ventures are needed to appoint amongst three and 13 directors. FIEs with couple of shareholders might be capable to convince the examination and approval authority to dispense with the board of directors and use an executive director.
| + | |
| - | | + | |
| - | Membership: In an Equity Joint Venture (EJV), board membership need to be proportionate to capital contributions. The board have to have a Chairman, but require not have a Vice Chairman. If both are utilized, even so, then if the foreign investor selects the Chairman, the Chinese party need to pick the Vice Chairman, and vice versa.
| + | |
| - | | + | |
| - | Meetings: Joint venture board meetings must be held as soon as a year, and a quorum is 2/three of the directors. For Equity Joint Ventures, unanimous consent of the board is needed for amendment of the Articles of Association, improve or reduction of the Registered Capital, merger or division, and termination and dissolution. The law is drastically a lot more flexible for Wholly Foreign Owned Enterprises - board meetings and quorum needs are governed by the WFOEs Articles of Association.
| + | |
| - | | + | |
| - | Director & Officer Liability: Director and officer liability law and enforcement is not as nicely-created as in numerous Western nations. Correspondingly, the market place for directors and officers liability insurance coverage is not especially nicely-developed either. The Chairmans function as the enterprises legal representative encumbers him with each civil and criminal liability for the acts and/or omissions of the enterprise. Directors can be held liable for board resolutions that are illegal or that contravene the Articles of Association and lead to losses to the firm. Directors, supervisors and senior management personnel can be held liable if they result in losses to the enterprise by violating laws and/or the Articles of Association.
| + | |
| - | | + | |
| - | Management
| + | |
| - | | + | |
| - | Equity Joint Ventures have to appoint a Basic Manager, 1 or far more Deputy Common Managers, and a Finance Manager. Although not required for other FIEs, this is typical practice for these enterprises as well. If a Chinese investor nominates the Basic Manager of an EJV, a foreign investor may possibly nominate the Deputy Common Manager, and vice versa.
| + | |
| - | | + | |
| - | Common Manager: The General Manager is charged with day-to-day operation and might be a foreign national if the enterprise so chooses. The responsibilities of the Basic Manager should be listed in the Articles of Association even if Chinese law does not need the appointment of a General Manager (as in the case of WFOEs). The Common Manager is charged by law with duty for formulating a management system for the enterprise production, operations and management, employment and termination of employees (except those that have to be employed and dismissed by the board of directors) and implementing board resolutions and investment and enterprise plans.
| + | |
| - | | + | |
| - | Deputy Common Managers: A Foreign Invested Enterprise may appoint a single or a lot more Deputy Basic Managers (EJVs are essential to appoint at least 1).
| + | |
| - | | + | |
| - | Finance Manager: An Equity Joint Venture is necessary to appoint one or more accountants to help the Common Manager with finances. This is also typical practice for other FIEs.
| + | |
| - | | + | |
| - | Supervisors
| + | |
| - | | + | |
| - | LLCs are necessary to have supervisory boards, despite the fact that this is frequently ignored in practice by WFOEs and Joint Ventures. [ We're Listening To You]
| + | |
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Pellentesque sed purus nisl. Mauris varius neque id arcu tempor porttitor. Nulla lacinia, eros non vestibulum dignissim, quam nunc ullamcorper dolor, nec egestas metus massa accumsan orci. In faucibus efficitur dolor vel porttitor. Donec lacinia sapien sed erat iaculis, eget mollis magna molestie. Quisque porta enim orci, eget euismod sem vulputate eu. Morbi eleifend mauris odio, congue egestas nulla semper id. Donec enim tellus, molestie vitae convallis non, dignissim at dui. Sed eget ante ut dui iaculis tempus eu et nisi. Nullam finibus erat quis mi egestas efficitur.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nulla hendrerit auctor purus, eget mollis lorem fringilla sed. Nunc sodales ullamcorper lorem eget commodo. Pellentesque velit metus, mollis et ex id, interdum tempor nibh. Vivamus eget metus sem. Duis consectetur arcu non risus tempus fringilla. Duis fermentum diam a enim vestibulum posuere. Nullam tempus laoreet molestie.
Etiam placerat augue quis justo lobortis, at pellentesque ligula consectetur. Nam scelerisque a erat ac mollis. Nulla egestas est non arcu tincidunt, quis mattis mauris lacinia. Quisque finibus purus lacinia interdum interdum. Proin quis viverra magna, et rhoncus felis. Nam eget leo vel mauris venenatis tincidunt ut vel quam. Nunc sodales venenatis dui, sit amet elementum arcu hendrerit at.
