{"id":1089,"date":"2020-01-14T12:40:30","date_gmt":"2020-01-14T12:40:30","guid":{"rendered":"https:\/\/www.jurisasia.com\/?p=1089"},"modified":"2025-08-29T08:24:02","modified_gmt":"2025-08-29T08:24:02","slug":"joint-venture-china-transparency","status":"publish","type":"post","link":"https:\/\/www.jurisasia.com\/en\/joint-venture-china-transparency\/","title":{"rendered":"A rare example of transparency"},"content":{"rendered":"
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A rare example of transparency<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Joint Venture in China (Part I)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A famous French politician and writer, Alain Peyrefitte, used (after Napoleon, allegedly) the words \u201cWhen China awakes, the world will shake\u201d as the title of his book published in 1973, which was proven as an anticipation of what happened since leading to the current weight of China as one of two superpowers of the world.<\/p>

Signs show that the same might be happening with regard to India. \n\nA free trade agreement FTA has been signed with Australia (ECTA) and another FTA is in the process of being negotiated with the European Union, with discussions starting in June 2022.<\/p>

The time has come to take a closer look at the Indian legal system.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Newsletter No. 4 - A Foreign Joint Venture in China before the International Commercial Court of Singapore<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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We have developed close links in India <\/strong> over a long period of years, through several instruction involving French and Indian companies, from SME\u2019s to MNC\u2019s. We have also a long standing formal relationship between law firms acknowledged by the Bar Council of Paris with a high profile firm in New Delhi. <\/strong><\/p>

Our understanding of India is further enhanced by the similarities between Indian law and Malaysian law,<\/strong> where our firm is headquartered<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Introduction<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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From a common base, the one of English common law <\/strong>with local characteristic, India has been and still is a model for Malaysia. <\/strong><\/p>

For example, the Malaysian Contracts Act 1950 (Act 136) is a replica of the similar Indian law The Indian Contract Act 1872. <\/strong><\/p>

Some chapters of the law on contracts which have been separated and embodied in a distinct statute (\u201cSales of Goods\u201d, \u201cPartnership\u201d) have been drafted in parallel to each other.<\/p>

Principles of common law<\/strong> which are not found in all jurisdictions<\/strong> are shared by the two legal systems, such as the unenforceability of clauses that are deemed to create a \u201crestraint of trade\u201d which applies inter alia to non competition clauses in employment contracts.<\/p>

Other basic concepts are interpreted in a similar manner in both jurisdictions, such as \u201cagency\u201d and \u201cbreach of contract\u201d.<\/p>

Likewise in criminal law, without being similar, the Criminal Procedure Code 2012 (Act 593) and the Code of Criminal Procedure 1973 of India <\/strong> share some of their rules, including some which are of material importance in commerce such as the admissibility of evidence, the plea bargaining and the preventive action of the police.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Players<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Partners<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Ms. Hu, a very wealthy Chinese woman who made her fortune in shopping malls and other real estate investments, and is the president of a clothing company in the People's Republic of China.<\/p>

Ms. Wang, the daughter of the former, a Harvard MBA, controls a Chinese company called Bachmeer Capital Limited. She is also a Chinese national from the People's Republic of China.<\/p>

Ms. Ong, a wealthy Chinese woman from Singapore, trained in England, first pursuing a career as a lawyer in her own firm, then transitioning into real estate.<\/p>

Ms. Suparman, Singaporean and business partner of the former. Professional experience includes a real estate company in Shanghai.<\/p>

Ms. Ong and Ms. Suparman are both shareholders of a company listed on the Singapore Stock Exchange called KOP Limited, of which they are Executive Chairman and Chief Executive Officer, respectively. This company has various subsidiaries, including KOP Limited and KOSPG.<\/p>

Mr. Shport, a Russian citizen living in Singapore, is a \"small\" investor in the project, albeit to the tune of US$1 million.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Legal Experts<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Two experts were brought in to provide their opinions on Chinese law, each holding partner status in a respected law firm in the People's Republic.<\/p>

They produced a joint document describing the points of legal interpretation on which they were able to reach agreement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Entities<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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