China: Investment Strategy

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New Rules On Nominee Shareholding Arrangements To Impact Foreign Investors
In a typical case of nominee shareholder arrangements, in 2001, a foreigner provided capital for an investment in the name of a Chinese individual, but on behalf of the foreigner. The final purpose of this specific investment was to acquire a second domestic company in an industry restricted to foreign investment. When in 2009 the parties came into conflict on the company’s operations, the foreigner filed two litigations in court to confirm his rights as a shareholder of the first company, and f
China Strategy
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