Im Gesuch ist die finanzielle Situation der Gesellschaft darzulegen, wobei das Gesuch gemäss Art. 293 ff. SchKG zwingend folgende Beilagen zu enthalten hat:

• eine aktuelle Bilanz der Gesellschaft
• eine Erfolgsrechnung
• eine Liquiditätsplanung oder entsprechende Unterlagen, aus denen die derzeitige und künftige Vermögens-, Ertrags- oder Einkommenslage des Schuldners ersichtlich ist, sowie
• ein provisorischer Sanierungsplan

Die Gesuchstellerin kann das Gericht um provisorische Nachlassstundung für maximal vier Monate ersuchen. Auf Antrag kann die provisorische Nachlassstundung in begründeten Fällen um weitere vier Monate verlängert werden. Ein Gesuch wird bewilligt, sofern nicht offensichtlich keine Aussicht auf Sanierung oder Bestätigung eines Nachlassvertrages besteht. Das Nachlassgericht hat die provisorische Stundung unverzüglich nach Eingang des Gesuches zu behandeln und trifft von Amtes wegen weitere zur Erhaltung des schuldnerischen Vermögens notwendige Massnahmen (Art. 293a Abs. 1 SchKG).

Nach Art. 293b SchKG setzt das Nachlassgericht einen oder mehrere Sachwalter zur näheren Prüfung der Aussicht auf Sanierung oder Bestätigung des Nachlassvertrages ein. In begründeten Fällen kann jedoch von der Einsetzung eines Sachwalters abgesehen werden.

Haben Sie weitere Fragen? Das HütteLAW-Team berät Sie gerne.

Author: Larissa Kälin

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post Debt-restructuring moratorium – an alternative to bankruptcy appeared first on China Collaborative Group.

We highlight the practical elements for enterprises to note when implementing the resumption of work.

1. Closed-loop management

Enterprise should implement a closed-loop pandemic control mechanism that is acknowledged by the authorities. Namely, a closed-loop refers to area zoning and category-based management for different areas to prevent physical contact between different groups of employees such as in production, common areas, or meeting rooms, as well as establishing no-contact with external individuals such as logistic suppliers (external individuals must hold a negative nucleic acid test certificate within 48 hours and on-site negative antigen test results). As result, employers should ensure the employees are segregated into groups, establish the work environment to permit one metre social distancing within the workplace, and restrict or limit physical contact between such groups to isolate positive cases to one group and prevent cluster outbreaks.

2. Emergency response plan

Enterprises shall formulate emergency response plans for COVID-19 outbreaks in the workplace. Any employees with abnormal antigen detection and nucleic acid detection should be reported to the official in charge and the Centre for Disease Control and Prevention. Transportation and treatment of those diagnosed with COVID-19 should be priorly established with the local government and temporary isolation measures should be implemented for close-contact staff. Large enterprise shall set up a shelter in the factory area.

3. Stock of Anti-Pandemic Materials

Enterprises should maintain a stock of anti-pandemic materials and purchase antigen self-test kits, face masks, alcohol-based disinfectants, hand sanitizers, infrared thermo-detectors, thermal imaging detectors, protective suits, goggles, disposable gloves, etc. whenever necessary. A minimum supply of anti-pandemic materials for 14 days is recommended. All used protective items shall be disposed properly and safely.

The Guideline also adds that enterprises should resume work and production under the guidance of district governments on a “one-on-one” basis. We suggest that enterprises consult with professionals to ensure the resumption of work is compliant with the local guidelines and district government.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post Resuming work for industrial enterprises in Shanghai? appeared first on China Collaborative Group.

DPB-the highlights

As stated, the DPB comprehensively incorporates most of the governing norms on data protection.

Comprehensive Incorporation of Core Principles on Data Protection

There are several internationally recognised core norms for data protection. These include Fair and lawful processing of personal information, Purpose specification, Minimality, quality, Openness and transparency, Data subject participation, Sensitivity, Security and confidentiality and Accountability.[1]

The DPB mandates data controllers to process information fairly, in a transparent manner and subject to the data subject giving consent.[2] This suffices as lawful processing of personal data under the DPB. Section 19 of the DPB also requires specific treatment for sensitive personal data. The DPB requires purpose specification for the processing of personal data, minimality, quality.[3] Data subject participation is guaranteed under part IV of the DPB which outlines the rights of a data subject. Data security is comprehensively regulated under Part V of the DPB. In all this, it is easy to appreciate how comprehensive the DPB is in embracing the international norms and standard on data protection.

Cross-Border Transfers of Personal Data

The DPB adopts a comprehensive framework for cross-border transfer of personal data.[4] This is a great step towards ensuring data protection in cross-border online transactions. This is because the DPB effectively provides a platform against which cross-border flows of personal data can be regulated. This can be sharply contrasted from the old Electronic Transactions and Cyber Security Act, which did not contain any provisions regulating cross-border flows of personal data in electronic transactions.

The DPB can be commended on many fronts including the condition of making data flows primarily subject to a decision on the adequacy of data protection in the foreign country to which the data will be transferred. [5]  The DPB is progressive in that data transfers can be authorised where the foreign country has a law, binding corporate rules, contractual clauses, code of conduct, or certification mechanism that afford an adequate level of protection.[6] This list is exhaustive enough to ensure sufficient facilitation of cross-border flows. In the absence of an adequate level of protection of any of the foregoing, a data transfer can be authorised under these conditions: if the data subject gives consent; if the processing is necessary for performance or conclusion of contract involving the data subject; and where consent cannot be practicably given, the transfer is nevertheless in the best interest of the data subject and the data subject would not have objected to it had he been asked.[7] These exceptions are broad enough to ensure the pace of international transactions is not unnecessarily hindered.

Data Protection by Design and Default

The DPB is also very progressive in that it accords the Authority with the power to publish directions on good practices and codes of conduct in data protection including the application of data protection principles by design and default in the processing of personal data.[8] Data protection by design is a concept that dictates that in light of progressive data protection regimes, companies must ensure that in their activities they incorporate data protection. Essentially since the companies must comply with data protection they must not wait for breaches before they address data protection but rather from the commencement of any action or process data protection must be incorporate and addressed.

On the other hand, data protection by default entails that for those computer products already released, there must be adherence to the highest standard of privacy to ensure data is kept safe and secure. Further, any data necessary for the operation of the product should only be kept for the minimum possible amount of time. The incorporation of these concepts in the DPB is a remarkable step in ensuring that privacy will be respected as technology gets more sophisticated.

The DPB clearly updates the data protection landscape in Malawi to comparable international standards.  This is indeed a shift in the right direction and will ensure that Malawi takes part in the information age. In my next article I shall explore some of the weaknesses in the DPB that may yet be improved to ensure comprehensive legislation is enacted.

Author: Gonjetso Dikiya LLB(Hons) University of Malawi; LLM candidate in Information and Communications Law, University of the Witwatersrand.

Head of Legal Services- Dispute Settlement Services

This content appears as a courtesy of Ritz Attorneys at Law, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit https://ritzattorneys.com/.

[1] Roos Anneliese ‘Core Principles of Data Protection’ 2006 CILSA 102-130.

[2] S. 18 of the DPB

[3] S. 23 of the DPB.

[4] Part VI of the DPB.

[5] S. 34(1)(a) of the DPB.

[6] S. 34(1)(a) of the DPB.

[7] S 36 of the DPB.

[8] S. 13 of the DPB

The post Insights into Personal Data Protection Bill appeared first on China Collaborative Group.

If the property is rented out, a nil ATED return must still be completed, a normal tax return must be filed in addition.

If this is not done in time, there is not only the threat of back tax and penalty tax. Failure to register for ATED can also delay a potential transfer of the property to a new owner for up to one year.

ATED has been mandatory since April 2013. If your company is not yet registered, this should be done as soon as possible.

HütteLAW will be happy to assist you in cooperation with Mark Levy from TC-group London (marklevy@tc-group.com ).

Author: Martin Hütte

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post Mandatory tax return for rental properties in UK – even if not rented out! appeared first on China Collaborative Group.

The protection of consumer welfare is one of the objectives of the Competition and Fair-Trading Act (CFTA). Although the protection of consumers is largely governed by the Consumer Protection Act, the competition regime also has a role to play because competition and consumer protection are essentially two sides of the same coin. This paper discusses the link between competition and consumer protection, and the role of the Competition and Fair-Trading Commission (CTFC) in the protection of consumers.

The Link between Competition Law and Consumer Protection

There exists an undeniable link between competition and the protection of consumers from unfair trade practices. Anti-competitive behaviour e.g., price fixing and exclusionary practices, distort the market force of supply by restricting the entrants into the market. Where supply is low and demand is high, producers will most likely hike their prices. The obvious disadvantage of this on the consumer is clearly a concern of both competition and consumer protection regimes.

Concurrently, consumer protection offences, such as deceptive advertising, distort the market force of demand. They create a false image as to the true nature of a product or service, making it seem to be worth more than it actually is. Unfair trading practices not only affect the welfare of consumers, but also lessen the business of existent or potential trade rivals. Thus, in order to ensure that there is a free market, sufficient protection must be given to both the supply side and the demand side – to both competition and consumer protection regimes. While ensuring that the market force of supply is protected by safeguarding against anti-competitive behaviour, demand must also be protected by safeguarding consumers against unfair and deceptive trade practices, that make goods and services appear to be worth more than they actually are.

Prohibited Unfair Trading Acts Against Consumers

The Competition and Fair-Trading Act prohibits any unfair trading acts committed against consumers. The following practices by producers or traders constitute unfair practices towards consumers and are prohibited under the Competition and Fair-Trading Act:

• Withholding or destroying producer or consumer goods, rendering goods unserviceable or destroying the means of production and distribution of such goods, whether directly or indirectly, with the aim of bringing about a price increase;
• Excluding liability for defective goods;
• Making warranties that do any of the following;
• Limit liability to a particular geographic area or sales point;
• Falsely represent that products are of a particular style, model or origin;
• Falsely represent that the goods are new or of specified age;
• Represent that the products or services have any sponsorship, approval, performance and quality characteristics, components, materials, accessories, uses or benefits which they do not have;
• Engaging in conduct that is likely to mislead the public as to the nature, price, availability, characteristics, suitability for a given purpose, quantity or quality of any products or services;
• Supplying any product which is likely to cause injury to health or physical harm to consumers, when properly used, or which does not comply with a consumer safety standard which has been prescribed under any written law;
• Claiming payment for unsolicited goods or services;
• Engage in unconscionable conduct in carrying out trade in goods or services;
• Engage in pyramid selling of goods and services (a scheme which makes money by recruiting people rather than by selling products);
• Engaging in bait selling (A sales tactic where a store/trader attracts customers by an advertisement for a high quality or low-priced item, that turns out to be unavailable. The trader then uses the opportunity to lure the customer into purchasing a higher priced or lower quality product as a replacement, or to purchase other products offered by the same producer. The advertised unavailable product is only used as bait);
• Offering gifts or prizes with no intention of supplying them;
• Putting out an advertisement which is misleading or deceptive; and
• Engaging in any such acts constitutes an offence.

Role of the Competition and Fair-Trading Commission in Consumer Protection

The CFTC is empowered to enforce the CFTA and regulate, monitor, control and prevent acts or behaviour which are likely to adversely affect competition and fair trading in Malawi.  This includes conducting investigations, whether of its own motion or otherwise, into the conduct of any business to ensure that its acts are not anti-competitive or unfair towards consumers. The Commission sits as tribunal and may hold public hearings in the conduct of its investigations. It has authority to summon and examine witnesses, to call for and examine documents, to administer oaths, to require that any document submitted to the Commission be verified by affidavit; and to adjourn any investigation from time to time. Following such hearings, the Commission may make a finding based on which the Commission can make orders and directions.

Thus, where unfair acts have been committed against consumers, the consumer may report to the CFTC, which will then summon the concerned parties and conduct investigations in the manner discussed above. The Commission also has power to unilaterally commence investigations of suspected unfair practices against consumers, without being moved by anyone. Once the Commission makes a finding, it can issue order and directions regarding the conduct of the trader against consumers. It may require that traders cease certain unfair trade practices or even make payment to consumers for injustices committed against them. Further, the findings of the Commission may be used as a basis for prosecution of those who engage in unfair trading practices. Through this, the welfare of consumers is protected.

The safeguarding of fair competition and the protection of consumers from unfair trade practices are interlinked and indispensable to each other. They both protect the market forces of supply and demand, which are necessary to ensure free and fair trade, as well as efficiency of production and distribution of goods and services. The Competition and Fair-Trading Commission plays a key role in the protection of the welfare of consumers through its findings, orders and directives issued pursuant to its investigative powers.

This content appears as a courtesy of Ritz Attorneys at Law, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit https://ritzattorneys.com/.

The post Protection of Consumers under the Competition Law Regime in Malawi appeared first on China Collaborative Group.

A copyright is an exclusive property right that belongs to authors of any work by the mere fact of its creation.
Copyright law does not protect ideas, but the expression of ideas, the forms but a work shall be eligible for copyright irrespective of its form of expression, its quality or purpose for which it was created.

Legal framework for Copyright in Malawi

Copyrights are governed by the Copyright Act 2016.
Malawi is also a signatory to various international instruments including:

• Berne Convention for the Protection of Literary and Artistic Works
• Universal Copyright Convention (Geneva)
• Agreement on Trade-Related Aspects of Intellectual Property Rights

Procedure for Registration of a Copyright

There is no registration requirement for copyrights in Malawi. An author of any work shall, by the mere fact of its creation, enjoy an exclusive property right in the work.

Eligibility for Copyright Protection

Any Literary, dramatic, musical or artistic work shall not be eligible for copyright unless:

• it is original in character; or
• it is a derivative work including the following:

i. translations, adaptations, arrangements and any other transformations of original literary, dramatic, musical and artistic works

ii. collections of works, such as encyclopedias and anthologies, which, by reason only of the selection or arrangements of their contents, constitute intellectual creations.

Works not subject to Copyright Protection

Copyright protection does not extend to the following:

• written laws and decisions of courts and administrative bodies and to official translations news published, broadcast or communicated to the public by any other means; and
• a report made by a commission appointed by the Government or any agency and which the Government has made available to the public

Rights Conferred by Copyright Protection

Rights conferred by copyright protection are subdivided into two major groups, being, economic rights and moral rights.

Economic Rights

The author of any copyrighted material shall have exclusive right to the following:

• Reproduction of the copyrighted material;
• Distribution of the copyrighted material through sales, renting, licensing or lending;
• Public display of the copyrighted material;
• Public performance of the copyrighted material;
• Communication of the copyrighted material to the public; and
• Translation, adaptation, or any other transformation of the copyrighted material.

Moral Rights

The author of any copyrighted material shall have exclusive moral rights:

• The right to claim ownership of the work and to demand that his/her name be mentioned in a manner in line with proper usage; and
• Object to and seek relief from alternation or distortion of their work where such act would be prejudicial to his/her honour or reputation or where such alteration would lead to discrediting of the work.

Ownership of a Copyright

A person vested with copyright shall be the author of the work.
Where two of more persons are authors of the work, copyright shall vest jointly.
Where the work is created during the course of the author’s employment or is a product of commissioned work, the rights in the work shall vest in the employer or party that commissioned the work.

What is the Duration of Protection

Copyrights shall be protected during the lifetime of the author and fifty years after his/her death.
In cases of joint ownership, during the lifetime of the last surviving author and for fifty years after his death.
In cases where the author is anonymous, fifty years from the date such work was first published.

Infringement of a Copyright

A person infringes a copyright where they, without valid transfer or license, reproduces, duplicates, extracts or imitates such a work, or sell, lends or hands out the said work without consent of the copyright owner.

How are copyrights enforced

Copyright infringement is a criminal offence and on conviction, violators shall be liable to a fine of MK5,000,000.00 and to imprisonment for two years.
A civil action for copyright infringement can also be commenced by the owner of the copyright where they can obtain remedies as follows:

• Damages;
• Injunction;
• Account of profits or otherwise; and
• Forfeiture of all reproductions to the copyright owner or the government.

Conclusion

Works in Malawi are subject to copyright protection merely by virtue of their creation. Copyrights vest various rights in the creators of works and prohibits unauthorised distribution or reproduction of such works. Where such infringement occurs, the proprietor has various remedies in both criminal and civil courts.

This content appears as a courtesy of Ritz Attorneys at Law, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit https://ritzattorneys.com/.

The post COPYRIGHT IN MALAWI appeared first on China Collaborative Group.

To the uninitiated, a swap transaction is an agreement between parties to exchange sequences of cash flows for a set period of time. By extension, a cross-currency swap transaction entails exchanging one currency for another, for instance, the legal tender for Malawi [the Kwacha] for the United States Dollar.

In essence, a cross-currency swap is an over-the-counter agreement between two parties to exchange interest payments and principal denominated in two different currencies. The agreement between two parties is to exchange cash flows in different currencies at some predetermined interest rates for a specified period. It involves exchanging both the principal and interest payments in one currency for the principal and interest in another currency aimed at financing their needs.

Interest payments and principal in Kwacha are exchanged for principal and interest payments in United States Dollars. Interest payments are exchanged at fixed intervals during the life of the agreement. And since the two parties are exchanging amounts of money, the cross-currency swap is not required to be shown in their respective balance sheets.

Key Characteristics of a typical Swap Transaction

A typical cross-currency swap transaction has the following characteristics: It is a bilateral agreement to exchange cash flows over a period of time. The agreement may involve an intermediary or a swap bank who brings the two parties together to complete the swap for a premium fee. The principal or notional amount is re-exchanged at the end of the period of the swap contract period. Payment intervals in swaps vary depending on the term structure of the swap agreement whether quarterly, bi-annually, or annually. As cross currency swaps are off-balance sheet items hence they do not impact the balance sheet ratios, each party has the perquisite advantage in meeting its own needs.

Practical Demonstration

A predominantly importing country may be facing rapidly depleting foreign exchange reserves to levels that may bring the economy on its knees. Foreign exchange inflows might be waning in comparison to the needed amounts to pay for indispensable imports. For instance, there might be MK 3 billion [Malawi Kwacha Three Billion] [the Swap Amount] available for payment to a foreign based supplier of LPG but no United States Dollars to remit the same.

Most handy, quick-fix solution for central bank is swap transaction. Central bank identifies a counter-party in a foreign country. The counter-party has the United States Dollars. It is willing to exchange this for the Swap Amount for pre-agreed interest. The counter party will usually identify a local bank [the Swap Bank] to be its agent for purposes of custody of the Swap Amount together with the pre-agreed interest on its behalf. Central bank will deposit the Swap Amount and the interest thereon with the Swap Bank. The counter-party will transfer the United States Dollars equivalent to the Swap Amount to the central bank. This makes available to the economy the much-needed foreign currency to pay for indispensable imports. The foreign supplier will thus be paid.

In Malawi, and indeed in other African countries alike, when well structured, a swap transaction might be beneficial to central bank, the Swap bank and a Government that relies heavily on domestic borrowing to finance its operations.

Central bank receives the much-needed foreign currency. Swap bank as recipient and custodian of the Swap Amount will have easily mobilized a huge deposit. The Swap Bank will then invest the Swap Amount in Government treasury bills. Everybody wins. In the end, Central bank has the much-needed foreign currency. Swap Bank has the much-needed deposit. Government has the much-needed funds for its operations.  Counter party has the much-needed interest on the foreign currency. And Swap Bank has the much-needed return on investment from Government treasury bills. Structured this way, swap transactions are beneficial to all involved.

Legislative Advantages of Swaps

Legislation in most African countries does not allow central banks to borrow from foreign banks or financial institutions without the authorization of the relevant Minister responsible for Finance. Minister of Finance may hardly give that authorization without approval of Parliament. Such process is not devoid of red-tape and bureaucracy. This is where swaps get handy. They are not a loan. They are not a borrowing. They do not impact the balance sheet. They are over the counter transactions. As such, they may not require authorization of the relevant Minister of the Finance. Central bank may simply require the resolution of its board to execute a swap agreement. The counter-party may simply require a confirmatory opinion of the Attorney General for it to be safe about the legality for the central bank to execute a swap. This cuts the red-tape and bureaucracy that comes with borrowing or loans from foreign financial or other institutions.

Conclusion

A country without adequate foreign currency will fail to finance importation of products and services that are indispensable for its people. Many ways for securing adequate foreign currency reserves may not be expeditious. For some countries, the legal frameworks for borrowing in foreign currency may be convoluted. As such, cross-currency swaps are certainly expedient ways for central banks to timeously shore up foreign currency reserves to meet indispensable imports and avert economic turmoil.

Note that cross-currency swaps are a broad legal-economic topic not to be exhausted in a article of the present length. For more details or further information, kindly seek the advice of a lawyer or economist.

This content appears as a courtesy of Ritz Attorneys at Law, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit https://ritzattorneys.com/.

The post CROSS-CURRENCY SWAPS – SOLUTION FOR CENTRAL BANKS IN PREDOMINANTLY IMPORTING COUNTRIES IN AFRICA? appeared first on China Collaborative Group.

Das Bundesgericht nahm den folgenden Sachverhalt zum Anlass, einen Grundsatzentscheid im Bereich der Prostitution zu fällen (BGE 6B_572/2020):

Ein Mann schaltete auf einer Kleinanzeigeplattform ein Inserat, in welchem er nach jungen Frauen suchte, die gegen Entgelt eine Nacht mit ihm verbringen würden. Daraufhin meldete sich eine Frau bei ihm, welcher er mehrmals versicherte, dass er ihr das zuvor vereinbarte Entgelt nach dem Geschlechtsverkehr übergeben werde. Überdies holte er die Frau am vereinbarten Treffpunkt in einem teuer aussehenden Wagen ab und gab auf der Fahrt ins Hotelzimmer – unter Angabe einer falschen Identität – vor, dass er im Bereich «Banking and Finance» tätig sei.

Nach getaner Arbeit machte sich der Mann indessen ohne zu bezahlen aus dem Staub und wurde von der Frau prompt wegen Betrugs zur Anzeige gebracht.

Das Bundesgericht stellte in einem ersten Schritt fest, dass der Frau aufgrund der gesamten Umstände keine Leichtsinnigkeit vorgeworfen werden könne, weil sie nicht auf Vorleistung bestanden habe und bejahte damit eine arglistige Täuschungshandlung des Mannes.

Dieser stellte sich auf den Standpunkt, dass der Prostitutionsvertrag sittenwidrig und damit nichtig sei, wodurch die Frau keinen rechtlich geschützten Anspruch auf Entrichtung des Entgelts habe.

Auch dieses Argument verwarf das Bundesgericht und führte aus, dass entgegen der bisherigen Rechtsprechung nicht mehr eine Sittenwidrigkeit des Prostitutionsvertrags angenommen werden könne. Dies deshalb, weil es sich bei der Prostitution aufgrund eines Wandels in den Wertanschauungen um eine «sozialübliche und zulässige Tätigkeit» handle. Die vorinstanzlichen Verurteilungen des Mannes wegen Betrugs wurden durch das Bundesgericht somit bestätigt.

Der Entscheid ist zu begrüssen. Nicht zuletzt deshalb, weil Löhne von Prostituierten u.a. der Einkommens- und Vermögenssteuer sowie der AHV-Beitragspflicht unterliegen. Insofern ist es konsequent, dass dem Lohn einer Prostituierten nun auch ein strafrechtlicher Schutz zuerkannt wird.

Author: Darko Radovic

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post Criminal protection of the income in the field of prostitution appeared first on China Collaborative Group.

During 2018, Horizons remains highly focused on the efforts of its newly formed China Collaborative Group (CCG). The multidisciplinary legal services collective is designed to provide Chinese clients with cohesive strategic solutions that facilitate cross-border investment under the Belt and Road Initiative and other global economic trade platforms. The Square talks with Roberto Gilardino, Horizons regional partner for North Asia and additional countries, about CCG’s launch seminar last December and the group’s activities going forward.

The Square: Coming away from the four-city Winning Ways for Investment seminar, what has been the perception of both the event and the concept of a China Collaborative Group such as you’ve proposed?

Roberto Gilardino: From the earliest planning around the China Collaborative Group to the Winning Ways seminar and on to where we are now, we’re extremely pleased with how things have and continue to progress. Of course, we’ve experienced some bumps along the way, but that’s always the situation when you introduce a new service platform.

And that we achieved.

TS: Can you say something about the overall audience reception across the four cities that seminars too place?

RG: We chose select cities — Shanghai, Shenzhen, Chengdu and Beijing — not only because they are the touchstones of different economic backdrops within China, but also because each has a vibrancy for innovation and a strong desire for engaging in overseas investment opportunities, both inbound and outbound.

As a whole, the audiences appeared keen to learn about the CCG platform and see what our group of advisors had to say. By now, experienced Chinese investors are familiar with what big-name global advisories have to say about investment — which includes a lot of generalities that scarcely differ from one firm to the next. What’s unique about CCG is that we’ve aligned advisories from a number of different countries to serve as unified parts of a service bridge — a bridge that tailors products and services to meet the genuinely unique needs of Chinese investors, not only in their execution, but with sensitivity to Chinese language, culture and the unique coordination that is required to carry out cross-border tasks.

If the dialogue between CCG advisors and seminar attendees that took place during the event session breaks — which included one-on-one meetings and group lunch — was any indication, I believe we made a strong impression on prospective investors.

TS: Was there any variation in response from city to city — differences you found in Shanghai, Shenzhen, Chengdu and Beijing?

Each city has its own characteristics and way of responding. Naturally, those from Shanghai and Beijing are more exposed to information than Shenzhen, Chengdu or other Chinese cities. However, I don’t see them as different per se, just as having their own characteristics and peculiarities.

What was most important for us during the roadshow was that every city reacted in what we believe is the proper way, making for the event a unique platform to serve local entrepreneurs. If we look at it from this perspective, we can say that roadshow was a success.

TS: From your conversations with attendees, both during the event and after, what particular topics stand out and resonate in regard to the challenges faced in cross-border investment?

RG: Some of the topics our experts spoke on during the seminar are familiar to those we envision as clients. For instance, our Swiss representative Martin Hütte (HütteLAW AG, Switzerland) spoke on the do’s and don’ts of M&A, while Josep Solsona (BAa Lawyers, Spain), from Spain, outlined the ‘golden’ guidelines for negotiations. These are not uncommon topics for Chinese investors or issues they are ‘in the dark’ about. However, there are a great many cross-cultural nuances at play in outbound investment that Chinese investors are not always, for lack of a better way of putting it, ‘so sure about’ in the target country.

What Martin, Josep and other CCG lawyers were able to convey to our audience of decision-makers, is that, despite some systemic differences, we are more aligned than misaligned in Chinese cross-border investment; and this gives Chinese investors’ confidence in pursuing outbound investment activities.

TS: For some Chinese ‘new money’ investors, venturing into corporate advisory of any form may be completely unfamiliar territory. What would be the CCG pitch to this increasingly active group?

RG: For a long time, Chinese marketing as a whole has sought to exploit people’s fears of not having something that others may have, lest they fail to capture an opportunity. This is changing as customers become more sophisticated. CCG’s marketing angle is not one of creating uncertainty or fear in prospective clients to convince them we’re the right choice to serve them, but that we stand with them as a down-to-earth team of advisors speaking their language and respecting their culture as both the starting point and throughout the duration of their project.

Our objective with the roadshow and all of CCG’s activities is to instil confidence in Chinese investors — confidence that with our diverse, far-reaching group at their side, they can master the cross-border investment lifecycle no matter their target country.

TS: I’m sure everyone was eager to hear about best practices, but did the Winning Ways seminar offer any ‘out-of-the-box’ insights for investors?

RG: Femi Sunmonu (Aliant® Qais Conrad Laureate, Nigeria), our CCG representative from Africa spoke rather passionately about the keys to investing and trading across borders. Much as China was a target investment country during its opening up period, Africa is now experiencing some of the same interest, and naturally eager to attract investment while not being taken advantage of and preyed upon. Femi truly won over the audience in each city with passionate talk of the importance of mutual respect, not only rhetorically, but in the real, every day, on-the-ground investment practices and behaviours in Africa.

Of course, Africa is not a monolith; it has more than 50 independent countries, each with its own unique business culture and practices. While Femi used his home country of Nigeria to illustrate certain points, his overarching theme was one of cross-border respect and dignity engaged in outbound investment. The overarching message was about the merits and reward of taking a humanist approach to one’s overseas investment.

TS: So, even though specific countries may have been addressed, the object of the seminar was to appeal to cross-border investment in a larger, ‘big-picture’ sense?

RG: Yes. In cross-border investment, there are constants that apply to all countries. For example, during the seminar, our CCG representative from Italy, Gad Matalon (Lawyalty, Italy), discussed the absolute importance of corporate roles in a company—more directly, who bears responsibility for a company and, elementary enough, who needs to be in charge.

When carrying out an assessment of a troubled overseas-invested company, it’s an all too common occurrence for stakeholders to appear unclear as to who is liable in the corporate structure and who’s in charge of whom? And therein lies a huge problem.

“Tight” corporate governance should be at the core of every company. One of CCG’s service mandates is to ensure investors take seriously their responsibilities for good corporate governance. This includes staying clear of token, ineffectual board seats and ghost management — a killer of companies.

TS: What are some of the other topic that CCG advisors spoke about as both part of the seminar and heir general talks with prospective Chinese clients?

RG: All in all, the seminar presented the audience with a wide range of investment insights, including topics related to understating who the key players are in cross-border transactions (presented by Astrid Dorfmeister, Dorfmeister & Partners, Spain), avoiding disputes when doing international business (Jeffery Daar, Daar & Newman, USA) and the basic principles of contracts (Meggy Parengkuan, Moores Rowland, Indonesia).

TS: Again, in considering ‘new money’ in China, investors are learning what it really means to be a shareholder in a company. Can you say something about that?

RG: Though they are not involved in most decisions, shareholders do have rights, which should be clearly outlined in a corporation’s charter and bylaws. Our event included two talks related to shareholder protection. Julian Cockain-Barère (Morvilliers Sentenac & Associés, France) shared a number of insights on drafting strong shareholder agreements, while Horizons regional partner for Europe, Russia and Belarus, Lucia Myriam Netti, spoke on issues and best practices related to shareholder protection in overseas investments.

TS: The roadshow event — and CCG as a whole — leans heavily in the direction of China’s Belt and Road Initiative, President Xi Jinping’s expansive plan to improve the infrastructure of land, air and maritime routes in Eurasia in order to drive trade and capital flows between east and west. Sounds like the China Collaborative Group in all-in with One Belt, One Road?

RG: Belt and Road is going to connect China and more than 65 other countries along land and sea routes from Malaysia to Eastern Europe. There has already been an investment of more than 900 billion US dollars committed to building and infrastructure networks. Also, it is important to state that the initiative is open to all countries and not just limited to the countries and regions along Belt and Road.

We are being presented with an incredible opportunity for global businesses to tap into new markets along Belt and Road as well as build stronger investment relationships with the Chinese mainland. This is at the core of CCG, to build bridges that help accelerate investment under Belt and Road and beyond.

TS: Those attending the Winning Ways for Investment seminar were presented with a hardcover book titled China Cross-Border Investment. What’s in the book?

RG: The book was a gift for those who took the time to participate in the seminar and listen to what the China Collaborative Group has to offer. It includes the writings of 17 CCG advisors from 15 countries and 8 regions whose contributions, much like the seminar talks, serve to inform and enlighten along the lines of cross-border investment.

TS: Since the Winning Ways seminar, the related offices of the China Ministry of Commerce has distributed five million copies of a version of the book. That’s a lot.

RG: Yes—five million.* The book is CCG’s initial calling card and a demonstration of both our expertise and commitment to the New Silk Road and smoothing the path to business connectivity and cooperation between Asia, Europe and the rest of the world.

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