Foreign companies are contemplating how to restructure their loss-making or low-profit China operations. There are several good options available, and several unwise choices, too. By Ghislain de Mareuil and Julie Tong, DLA Piper, Shanghai.
New measures formalise and streamline the process for making capital contributions using equity, although they may raise approval issues for foreign-invested enterprises.
The total of the amount of capital contribution in the form of valuated equity and of capital contribution in the form of other valuated non-monetary property by all of the shareholders may not exceed 70% of the registered capital of the investee company.
Sherry Yin has joined Morrison & Foerster as a partner in its corporate practice.Yin, a specialist in inbound and outbound corporate and securities…