Legal Notebook

Lee and Wang jointly assigned an agency to handle the registration procedures for the establishment of their company. Because Wang was located in the other city, the agency signed Wang’s name on the documents without authorization. 3 years later, Wang planned to transfer his equity to a third party. While handling the registration procedures for the equity transition, the registration authority rejected his application for the reason that his signature was different from the previous signatures. Wang was caught in a dilemma. A series of laws, regulations, such as the ‘Company Law’, the ‘Regulations on Administration of Registration of Companies’,…

Mr. Wang was the director of Company A, a limited liability company. Because Wang had a different view on the theory of the business with the other directors, he wanted to resign. Unexpectedly, the shareholders of Company A were afraid that Wang would compete with the company after his resignation, so the shareholders rejected his resignation application. Wang was in the dilemma. The ‘Company Law’ has prescribed the provisions on the selection and change of the director of a limited liability company, however, it fails to prescribe the procedures on the resignation of the director. Then, where the Articles of…

Mr. Pei is Company A’s employee. One day, Company A sent a ‘Notification on the Negotiation of the Termination of the Labor Contract’ to Pei, which stated, ‘……The company is going to negotiate with you on dissolving the labor contract, please respond in written to the company within 3 days after you have received this notification, otherwise, it shall be deemed that you are agree to dissolve the labor contract.’ 11 days later, Company A sent a ‘Notification on the Dissolution of the Labor Contract’ to Pei. Then the dispute arose. After the second trial, the court decided that Company…

Recently, a case attracted the widespread attention. Honda was ordered to compensate Shuanghuan RMB16 million by the Supreme People’s Court (‘SPC’), because SPC decided that Honda had violated the Unfair Competition Law by sending the warning letter improperly. Since in May 2015, the First Circuit Court of the Supreme People’s Court (‘FCC’) addressed the nature and validity of the warning letter in a business defamation case (Edan v. Mindray). The Honda v. Shuanghuan case is another milestone in the application of Unfair-competition Law on the warning letter (‘WL’), in which the SPC has further addressed the relevant factors and criteria.…

The sales staff Zhang was suffering from depression. He asked the employer Company A to provide the work-related injury welfare, because he insisted that this disease was caused by the sales pressure, which should be ascertained as the work-related injury. Company A refused his request, it insisted that the mental illness did not belong to the scope of the work-related injury which as stipulated in the ‘Regulations on the Work-related Injury Insurances’. Then the dispute occurred. In practice, with the severer competition, accelerated life pace, there are more and more labor cases related to the mental illness. While an employee…

Before the emergency of the computer and internet, the majority of business models are carried out entirely or partly by the individual’s behavior, which says the pure business methods. Such business models would be deemed as the ‘intellectual activity and method’ which is prescribed in Article 25 of the ‘Patent Law’, and it could not be patentable. With the development of the computer and internet, more and more business models are carried out by ‘individual’ and ‘Computer’, ‘individual’ and ‘Internet’, or even ‘Computer’ and ‘Internet’. Because more and more techniques are applied into those business models, the founder of such…

Mr. Kang was the vice general manager of Company A. One day, the company found that he had provided the false personal information about education background, so it dissolved the labor contract with him. Later on, Kang brought the dispute to the labor arbitration committee. The committee determined that the company failed to require Kang to provide any relevant documents to prove his education background, or verify Kang’s education background with the relevant departments. Finally, Company A was deemed as dissolving the labor contract illegally. According to Article 8 of the ‘Labor Contract Law’, the employer has the right to…

From March to September 2015, within 6 months, the State Council has mentioned that the relevant departments shall analyze on how to apply the IP protection on the new forms of the creative innovations including the business model, in 3 files, the ‘Some Opinions concerning Deepening Structural and Mechanism Reform and Accelerating the Implementation of the Innovation Driving Development Strategy’, the ‘Opinions of the State Council on Several Policies and Measures for Vigorously Advancing the Popular Entrepreneurship and Innovation’ and the ‘Plan for the Implementation of Deepening the Science and Technology System Reform’. The business model (hereinafter referred to ‘BM’)is…

Lee was the employee of a Shanghai Company. One day, he was injured within the working hour, and was sent to the hospital immediately. 4 months later, Lee left the hospital. After another 3 months, Lee was assessed as the 10th Grade Disability. The company refused to pay the 3 months’ salary after Lee had left the hospital. Lee brought the dispute to the labor arbitration committee. Finally, the labor arbitration committee supported Lee’s claim. According to Article 33 of the ‘Regulations on Work-Related Injury Insurances’, the suspension-of-work-with-pay period (‘SWP Period’) is a welfare benefit for the employee who has…

The ‘Detailed Rules for the Implementation of the Patent Law’ has prescribed that the agreement on the reward and remuneration for service invention (hereinafter refers to ‘Service Invention Rewards’) shall prevail, which further prescribed that an employer could make an agreement with the employee, or prescribe in the internal rules and regulations on the payment methods and amount of ‘Service Invention Rewards’.( hereinafter refers to ‘Agreement’) (Note: the internal rules and regulations are determined after the consultation with the labor union or employee representative on the basis of equality, so it is essentially a supplementary to the labor contract) Recently,…