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  • 2019-04-15
  • 3 minutes Read
Provisions (III) of the Supreme People's Court on Several Issues concerning the Application of the Enterprise Bankruptcy Law of the People's Republic of China (“Provisions (III) ”) has become effective on 28 Mar.2019

In judicial practice, there are many doubts on the application of the “Enterprise Bankruptcy Law” in dealing with creditors’ rights and other issues, while hearing a bankruptcy case. In order to clarify some of those doubts, Provisions (III) as adopted at the 1762th meeting of the Judicial Committee of the Supreme People’s Court on 25 Feb. 2019, and has become effective on 28 Mar.2019. The main contents include: 1. For the common credits and the credits for the purpose of continuing operations during the bankruptcy proceeding, the later shall be prevail Article 2 of Provisions (III) prescribes that for the…

  • 2019-04-15
  • 4 minutes Read
How to Distinguish a Distribution Contract with a Consignment Contract?

Some companies would entrust trading companies to sell products for various reasons, and both parties would sign contracts. In practice, those contracts have different titles, such as a distribution contract , or a consignment contract, and contents are various as well. Then, how to determine the right title and contents? The specific provisions in the “Contract Law” have listed many named contracts, however, the distribution contract and the consignment contract have not been listed in such provisions. According to Article 124 of the “Contract Law”, such unnamed contracts shall be governed by the general provisions of the “Contract Law”; and…

  • 2019-04-15
  • 4 minutes Read
Whether an Employer Could Withdraw the Offer?

Company A sent Lee an offer, in which the company had stated the position, salary, the date of employment and so on. Lee replied to accept the offer, and applied for resignation to the current employer. Unexpectedly, a few days later, Company A informed Lee that the offer was withdrawn. Both parties have disputes on the withdrawal. Then whether an employer could withdraw the offer? First, the relationship between the two parties is the key for determining the applicable laws. Article 7 of the “Labor Contract Law” stipulates that the employer shall establish an employment relationship with the employee from…

  • 2019-03-05
  • 3 minutes Read
The Foreign Investment Law of the People’s Republic of China will come into force on January 1, 2020

The Foreign Investment Law of the People’s Republic of China (the “Law”), as adopted at the 2nd Session of the Thirteenth National People’s Congress of the People’s Republic of China on March 15, 2019, is hereby issued, and shall come into force on January 1, 2020, which will replace the “Law on Foreign-funded Enterprises”, “Law on Sino-Foreign Cooperation Joint Ventures”, and “Law on Sino foreign Equity Joint Ventures”(the “Three Laws”). The following content deserves the attention of foreign-invested companies. 1. The approval system would be abolished, and the negative list system shall be implemented Article 4 prescribes that the State…

  • 2019-03-05
  • 3 minutes Read
Implementing the Transaction before Signing a Contract, How to Deal with the Relevant Disputes?

In commercial activities, it is not rare that the parties would implement a transaction before signing a contract, due to the time requirements, or a party is too eager to obtain a transaction opportunity and so on. However, once there is any dispute, such as a disagreement over the terms of the transaction; or the seller has implemented its responsibilities, but the buyer refuses to pay, then it would be very difficult for the parties to claim their rights and interests. In fact, if both parties have implemented a transaction before signing a contract, it shall be deemed as a…

  • 2019-03-05
  • 4 minutes Read
Supervisor = Part-time Job?

Company A found that HR manager Chen was the supervisor of Company B, and dissolved the labor contract for violating the “Employee Handbook”, in which it stipulates that an employee shall not take another part-time job. Chen insisted that Company B had not signed a labor contract with him, or given any salary to him, in addition, the supervisor role would not be involved in the daily business of Company B, so his behavior should not be deemed as a violation of the “Employee Handbook”. Finally, both the labor arbitration committee and the court decided that such behavior should be…

  • 2019-02-05
  • 3 minutes Read
Arrangement for Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Cases by the Courts of the Mainland and of the Hong Kong Special Administrative Region (“Arragenment”) has been signed on 18 Jan.2019

Many companies would choose Hong Kong as the jurisdiction place when they are involved in foreign civil and commercial activities. Till 2018, mainland and Hong Kong have signed arrangements on 4 aspects: (a) enforcement of arbitration awards; (b) recognition and enforcement of the judgments of civil and commercial cases under consensual jurisdiction; (c) recognition and enforcement of civil judgments in matrimonial and family cases; and (d) to be commissioned obtaining of evidence in civil and commercial cases. In order to cooperate more comprehensively, the Mainland and Hong Kong signed the Arrangement on 18 Jan.2019, and the Arrangement will take effect…

  • 2019-02-05
  • 6 minutes Read
Changes in the Judicial Opinions on Trademark Coexistence Agreements

If a trademark for registration is identical with or similar to another party’s trademark which has been registered or preliminarily approved for use on identical or similar goods, the Trademark Office shall reject the application, as stipulated in Article 30 of the “Trademark Law”. In practice, it is very common that a trademark for registration might be rejected for such reason. Where the applicant has used a trademark for a long period, or has spent a large amount of manpower and mone in the promotion, or for other similar reasons, the applicant would try to register such trademark by applying…

  • 2019-02-05
  • 3 minutes Read
Failed to Sign the Labor Contract Timely

The labor contract signed by Shao and Company A expired in Nov. 2014. Company A failed to renew the contract timely. In Feb. 2015, Company A asked Shao to renew the contract, and required Shao to sign the date as Nov. 2014 in the contract. Later, Shao took the vocal record of the talk with the HR manager as the evidence, and required Company A to pay double salary for the periods of not signing the contract. Finally, the court supported Shao’s claim. Article 82 of the “Labor Contract Law” clearly stipulates that an employer shall sign the labor contract…

  • 2019-01-03
  • 3 minutes Read
SAIC and other 4 departments jointly issued the “Circular on Advancing the Work on Providing Convenience for Enterprise Deregistration” (“Circular”)

Enterprise Deregistration involves many departments, such as market regulation, taxation, social security, commercial, custom and so on. While dealing with the procedures related to enterprise deregistration, sometimes, an enterprise might be confused about the procedures. Recently, SAIC, MOHRSS, MOFCOM, GAOC and STA have jointly issued the Circular. According to the Circular, the relevant departments would optimize or simplify the procedures for the enterprise deregistration from the following aspects: 1. One-network service To insert a deregistration session on the integrated government service platform, which could update the deregistration information to the relevant departments, and those departments could guide the enterprises on…