All posts by legal

Company A had three legal person shareholders, one of which was deregistered without notifying A. Due to the absence of this shareholder, and the director appointed by it, A faced many challenges, including the effectiveness of resolutions of the shareholders’ meeting and the board of directors, as well as the procedures for business registration, and etc. With the slowdown of economic growth, and the amendment on the paid-up capital system as stipulated in the revised “Company Law” in 2024, A’s challenges may become more and more common. However, the current and the revised “Company Law” provide rules in dealing with…

Lau works as a packaging worker at a company in Dongguan. On October 13, 2017 at 21:22, Lau got off work. On the next day at 8:00, Lau’s wife contacted Lau’s supervisor to ask for a sick leave on his behalf. Lau went to the hospital for medical treatment. At 11:30, Lau was lack of consciousness, and died due to “sudden death” after being sent to the hospital for rescue. Lau’s wife applied for the work-related injury recognition. The local human resources and social security bureau reviewed relevant information, and decided Lau’s death should not be recognized as a work-related…

Recruiting talent through headhunting companies is an important way for many companies. However, disputes arising from headhunting agency services are not rare in practice. How can we reduce such risks and take preventive measures? Firstly, we have to figure out the common causes of such disputes. In practice, the causes could be mainly classified into the following categories: The first cause is the “collision order”. When recruiting, companies may use multiple channels, including public recruitment, internal referrals, and posting job requirements to several headhunters. Different channels may lead to the same candidate. For example, if candidate A is recommended via internal referrals and a headhunter,…

Jia and Company A, a Beijing company, signed a labor contract which expired on Feb. 16,2016. After the expiration, Jia was arranged by Company A to sign a 3-years labor contract with Company B, a wholly-owned subsidiary of Company A. During the implementation of the contract with Company B, Company A sold its share to a third party. Before the expiration day, Company B sent a notification of termination to Jia, notifying him that the contract would be terminated on the expiration date and the company would pay economic compensation. Jia hold that he had already signed a fixed-term contract for twice, so Company…

The 12th Amendment to the “Criminal Law” was reviewed and approved by the Standing Committee of the National People’s Congress on December 29, 2023, and will come into effect on March 1, 2024. This revision will bring a significant impact on anti-fraud policies of foreign-funded enterprises. To add liabilities to the crime of offering bribes, which may curb this crime, but also may reduce the possibility to persuade the bribers to provide evidence. It is very difficult to find evidence of bribery, because of its concealment. Many bribes are in cash, or transferred to a third party by which the…

Generally speaking, an employer should complete the social insurance registration for new employee from the date of employment, by which can avoid the risk that the employer has to bear all liabilities when a new employee suffers a work-related injury before the employer completes the registration (referred to as the “gap period”). However, in practice, different companies have different practices. Some complete such registration on the date of employment; some complete such registration in a specified period every month, such as from 15th to 20th in each month, so those employees whose employment date is latter than 20th of the…

Company A, a US funded enterprise in Jiangsu, and Company B, a Japanese funded enterprise in Shanghai, have signed a sales contract, in which stipulates that in the event of a dispute, either party may submit it to an arbitration institution in Hong Kong for arbitration. Is this agreement valid? A typical viewpoint is that one of the basic principles of civil laws is the “autonomy of will”, and such agreements should be valid. In fact, such viewpoint is incorrect. The attitude of the Supreme People’s Court is very clear. In Article 83 of the “Answers to Practical Issues in…