Law – TropicalHainan.com

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First legislation on wetland protection in China submitted to Standing Committee of the National People’s Congress for deliberation

January 28, 2021April 2, 2021 Jake Canning 346 Views Featured mp

A draft law on wetland protection in Hainan was submitted to the Standing Committee of the National People’s Congress for deliberation.

Law Mini Programme

Does a photocopy have legal standing?

April 27, 2020April 27, 2020 Jake Canning 654 Views Featured mp

Does a photocopy have legal standing? Read this article to find out whether or not a photocopied document will stand up in court.

Law

How to avoid personal liability as the middleman

April 3, 2020April 3, 2020 Jake Canning 928 Views

Find out more on how to keep yourself safe as the middleman

Law

Can a spouse give away a property without consent?

March 27, 2020March 29, 2020 Jake Canning 559 Views

Can a spouse give away a property without consent? Find out in this article

Law

Is the kindergarten liable if my kid gets hurt at school?

March 20, 2020March 20, 2020 Jake Canning 806 Views

Find out if the kindergarten is liable if your kid gets hurt whilst at school

Law Mini Programme

Is an unregistered mortgage agreement valid?

March 19, 2020April 5, 2021 Jake Canning 344 Views

Find out whether an unregistered mortgage agreement is valid or not.

Jeff, Alex and Bob own a consulting company in Guangzhou. Jeff holds 80% of the shares, Alex 15% and Bob 5%. On Jeff’s son’s 20th birthday, Jeff decides to buy his son a new flat. They have their eyes set on a 15 million Yuan flat in West District of Beijing, as that is at where his son studies. However, Jeff only has half of the contract amount, 7.5 mil, so he has to borrow the other half from a bank. As borrowing money requires a corporate asset as security, Jeff decided to use the office. Jill, the accountant was reluctant to provide Jeff with the office title certificate. ‘For whom are we providing this security? Don’t we need to first call a shareholder’s meeting?’ She questioned. ‘For me. I am buying a flat for my son. I own 80% of this company and I am the biggest shareholder. A board meeting will provide the same results.’ Jeff replied. Worried that she might lose her job, Jill did what was told and gave Jeff the office title certificate. Is what Jeff doing proper? Law In A Minute No, it is not proper. Providing any security to a shareholder requires a shareholders’ resolution, and Jeff, being an interested party, is not allowed to vote in this motion. So basically, there is no chance of him getting the corporate security approved unless he can convince Alex and Bob to vote for it, ie the consent of minority. This is to prevent majority shareholders from abusing their rights and to protect the minority shareholders from any arbitrary decisions of majority shareholders. Legal Basis Company Law of the People's Republic of China Article 16 If a company intends to provide guaranty to a shareholder or actual controller of the company, it shall make a resolution through the shareholder's meeting or shareholders' assembly. The shareholder as mentioned in the preceding paragraph or the shareholder dominated by the actual controller as mentioned in the preceding paragraph shall not participate in voting on the matter as mentioned in the preceding paragraph. Such matter requires the affirmative votes of more than half of the other shareholders attending the meeting.

Law

Can shareholders force a company to provide corporate security?

March 16, 2020March 16, 2020 Jake Canning 835 Views

If a company intends to provide a guarantee to a shareholder or actual controller of the company, it shall make a resolution through the shareholder’s meeting or shareholders’ assembly.

Law

How is severance pay calculated?

March 13, 2020March 13, 2020 Jake Canning 888 Views

Everything you need to know to calculate your severance pay correctly.

Law

What to do if you get sick eating take away food?

March 11, 2020March 11, 2020 Jake Canning 510 Views

Recently become sick from eating a bad take away? Answers on what you can do here.

Law

What triggers severance payment?

March 11, 2020March 11, 2020 Jake Canning 703 Views

Think you are entitled to severance payment? Have a look at these 12 points.

Law

How not to lose money when investing in China.

March 11, 2020March 11, 2020 Jake Canning 658 Views

Looking to invest in China? Take a look here before you do.

Law

Does the company stamp really matter?

March 11, 2020March 11, 2020 Jake Canning 555 Views

Does a company stamp really matter? Can a deal be cancelled because of no company stamp? All the answers here.

Law

Free shares! A trap or a windfall?

March 11, 2020March 11, 2020 Jake Canning 443 Views

Has someone offered you free shares in a company? You might want to read this first.

Recovering agency fees if agent hides facts 800 445

Law

Can you recover rental agency fees if your agent hides facts?

March 11, 2020March 11, 2020 Jake Canning 417 Views

Information on the law regarding agency fees and rental of property in China.

Law

Can the property management increase your fees without consent?

March 11, 2020March 11, 2020 Jake Canning 435 Views

Can the property management increase your fees without consent?

Law

Are you out if there’s an office romance?

March 11, 2020March 11, 2020 Jake Canning 416 Views

If you have an office romance in China can you get fired?

Law

Is crowd-funding illegal in China?

March 11, 2020March 11, 2020 Jake Canning 408 Views

Is crowd funding illegal in China? Follow this short story to find out more.

Can the property management cut off my water

Law

Can the property management office cut off your water?

March 11, 2020March 11, 2020 Jake Canning 417 Views

The laws in China regarding property management services and them cutting off your utilities.