Professional Interpretation

The real estate and infrastructure team of Beijing DOCVIT Law Firm will interpret adjudication rules for waiving the priority of compensation of the engineering funds in the juridical practice and deeply discuss the problems existing in the practice application in combination with its years of experience according to the new regulation, so as to help parties under the construction engineering contract to understand related laws and clarify the transaction cost.

As a system to protect the litigation interests of the creditor, property preservation is stipulated as a separate chapter in the Civil Procedure Law. However, that the property losses are caused to the preservation respondent due to improper preservation behavior is also extremely easy to cause the property preservation damage liability dispute in the process of litigation (or before litigation). So, how to identify the preservation error in judicial practice, the dispute resolution team of Beijing DOCVIT Law Firm will analyze combining with the specific cases for reference.

The year 2018 witnesses large scopes of “liquidation” of P2P. According to the industry discussion, the year 2019 will witness a high incidence of private equities disputes. It is frequently occurred that the fund manager is under loss of communication and escapes. When the fund manager gets slack to exercise the rights, relates the transaction, transfers benefits with the party to be invested, and conducts other behaviors damaging interests of the investor, the investor, as a limited partner, may take advantage of the derivative action to initiate legal proceedings against the party causing the infringement on behalf of the limited partner enterprise beyond the authority of the private equity manager, so as to protect interests of the limited partner enterprise and the investor. The financial and capital market team of Beijing DOCVIT Law Firm proposes to make study and discussion about key problems on the law existing in the practice of the derivative action made by the limited partner.

The international business team of Beijing DOCVIT Law Firm has briefly interpreted the influence and challenges after China joins the convention in terms of the main content of Singapore Mediation Convention, combined with China’s background of “Belt and Road”.

Article 71 of the Company Law of the People’s Republic of China provides as follows:“Stock rights of the shareholders in a limited liability company may be transferred among the shareholders in whole or in part.Where any shareholder proposes transferring his/its stock rights to any person other than the shareholders, any such proposal shall be subject to the consent of a majority of the other shareholders. The relevant shareholder shall give the other shareholders a written notice of the details of the proposed transfer of stock rights and seek their consent. Any of the other shareholders who fails to respond within 30 days upon receipt of the written notice shall be deemed to have consented to the transfer. Where a majority of the other shareholders whose consent is sought disagree with the proposed transfer, the shareholders who disagree with the proposed transfer shall purchase the stock rights to be transferred. In the event that they refuse to purchase the stock rights in question, they shall be deemed to have consented to the transfer.Under the same conditions, the other shareholders shall have the right of first refusal for the purchase of the stock rights to be transferred upon their consent. Where two or more shareholders exercise such a right of first refusal, they shall determine their respective purchase percentages by negotiation, failing which they shall exercise the right of first refusal in proportion to their respective capital contributions at the time of transfer.Where there any provisions regarding the transfer of stock rights in the articles of association, such provisions shall prevail.”

On April 3, 2019, Jiangsu Higher People's Court made a retrial judgment on Jiangsu Huagong Venture Capital Co., Ltd. and Yangzhou Forging Machine Co., Ltd., Pan Yunhu and other companies, over requesting the company to acquire shares (hereinafter referred to as “Hua Gong Case”). The VAM clause of the purchase obligation is valid. The Huagong case has made a breakthrough in the "Company's VAM clause is invalid" rule, which was established in the Haifu case. This case is an influential precedent for the judgment of the VAM clause in the dispute settlement of private equity funds and the terms of the relevant agreements in private equity investment.

The United States adopts a comprehensive income tax system, which combines the standard deduction and sub-deduction for pre-tax deduction. The comprehensive income tax system refers to a system that combines the income of various sources from a taxpayer within a certain period of time (usually one year), minus the statutory reduction and exemption items and the amount of credit, and the income tax is calculated based on the progressive tax rate. The standard deduction refers to the method of deducting a certain high standard prescribed by law when the taxpayer's deduction items are below a certain amount.

The globalization of today's society is accelerating, and science and technology are developing rapidly. The distance between peoples of all countries continues to be brought closer, and international social interactions are increasingly close. Exotic relationship and exotic marriages are not uncommon. According to the latest statistics released by the Ministry of Civil Affairs of the People's Republic of China, the 2017 Statistical Report on Social Service Development, in 2017, a total of 41,000 pairs of foreign-related and overseas Chinese, Hong Kong, Macao and Taiwan residents were registered for marriage. At the same time, with the improvement of education level, people's awareness and ability to accumulate wealth is constantly improving, and cross-border tourism, home ownership, housing and immigration have become more and more. According to the relevant provisions of the Judicial Interpretation of the Law on the Application of Foreign-related Civil Relations Law of the People's Republic of China (the “the Law of the Application of Law”), one or both spouses are foreign citizens or their permanent residence is outside China, and the spouse’s property is outside China, or When the husband and wife sign a property agreement abroad, they may involve foreign-related property relations.

The differences in resources between China and the United States have laid a solid foundation for economic and trade cooperation between the two countries. As we all know, China has a large population, rich labor resources with low labor costs, while the United States is with larger land and fewer people, developed cultivated land resource and its land costs are relatively low. Besides, in China, the per capita education level and scientific and technological development level lag behind those of the United States. Since ancient times, the most developed industries in China have been traditional labor-intensive industries, while the United States has developed capital-intensive industries into one of the most important industrial types within their territory. According to the below Table 1 sourced from the China Customs and the Commercial Data Center of the Ministry of Commerce of the P.R.C., China's exports to the United States are mainly electronics and labor-intensive light industrial products, a lot of which are from U.S. manufacturers that send raw materials to China for low-cost assembly. The biggest categories of China’s imports from U. S. are mainly large-scale means of transportation, high-tech products, as well as agricultural products. As the resources between the two countries are highly complementary with each other, it is reasonable and feasible for the two countries to establish a long-term good economic and trade relations. Since China joined the WTO, the volume of trade between China and the United States has increased rapidly, and the two countries have gradually become the most important trading partners of each other.

China has a large population, rich labor resources with low labor costs, while the United States is with larger land and fewer people, developed cultivated land resource and its land costs are relatively low. In China, the per capita education level and scientific and technological development level lag behind those of the United States. Therefore, since ancient times, the most developed industries in China have been traditional labor-intensive industries, while the United States has developed capital-intensive industries into one of the most important industrial types within their territory. Nowadays, China's exports to the United States are mainly electronics and labor-intensive light industrial products, a lot of which are from U.S. manufacturers that send raw materials to China for low-cost assembly. The biggest categories of China’s imports from U. S. are mainly large-scale means of transportation, high-tech products, as well as agricultural products. As the resources between the two countries are highly complementary with each other, it is reasonable and feasible for the two countries to establish and maintain a sound long-term economic and trade relations. Given the current worldwide positions held by China and the United States, it is with no doubt that the relations between the two are the largest bilateral relations in the world, and of course its status and changes will not only affect the domestic economy of the two countries, but also will have an important influence on the whole world economy. However, along with the rapid development of the trade and investment between the two countries, China's trade surplus with the United States continues to expand, and more serious trade imbalances between the two have led to more and more disputes in their economic and trade relations.