Downsizing or Liquidating a China Business
Feb. 11 – While the current global economic problems continue to wreak havoc, particularly among businesses in China who are solely export focused, it is prudent for executives facing difficult decisions in China to be aware of their responsibilities when faced with tough decisions.
The Chinese government has already stated that it intends to seek prosecution for foreign executives and legally responsible persons for not properly meeting statutory obligations when closing a business in China. Just walking away is an option that now carries the risk of being permanently barred from entry to China, possible apprehension at immigration in the future, heavy fines, and jail sentences.
With these penalties in mind, we have updated and released as a special issue, our articles on downsizing and liquidating businesses in China (click on picture at right to download this issue). We outline the responsibilities foreign executives have when it comes to winding up a business in China, and the procedures that need to be followed. It is a difficult subject, however in accordance with most business matters, still requires attention to detail and regulatory compliance.
In this issue:
Downsizing staff and the Chinese Labor Law
Company Law and the Liquidation Process
Financial and Tax Considerations
Accurately Assessing Liabilities
Formation of the Liquidation Committee
Applying for Bankruptcy
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