7 ASIAN LEGAL BUSINESS – JULY 2024 WWW.LEGALBUSINESSONLINE.COM BRI EFS in corporate governance structure, the incorporation and liquidation procedures, and share capital structure for joint stock companies (JSCs). The stricter capitalisation requirements and strengthened creditor protection are also highlighted as beneficial in facilitating business dealings between foreign investors and Chinese companies under the new law. “That being said, foreigninvested companies also need to make adjustments, particularly regarding shareholders’ capital contributions, corporate governance practice, and duties of directors, supervisors, and senior officers,” adds Shen. As such, it’s crucial for companies to familiarise themselves with these new opportunities and requirements while gearing up for a lengthy transition. “This will involve considerable investment of time and resources, including engagement with specialist legal counsel,” Shen says. WILL THE LAW HELP CHINA’S ECONOMY? Even though some see the transitional period as lengthy, Shen is DEALS $3 BLN Hyundai Motors India’s planned IPO Deal Type: IPO Firms: Cyril Amarchand Mangaldas; Latham & Watkins; Shardul Amarchand Mangaldas & Co; White & Case Jurisdiction: India $1.7 BLN Blackstone’s offer to take Infocom private Deal Type: M&A Firms: Anderson Mori & Tomotsune; Simpson Thacher & Bartlett; TMI Associates Jurisdictions: Japan, U.S. $1.4 BLN Kirin Holdings’s offer to acquire Fancl Corp Deal Type: M&A Firms: Nagashima Ohno & Tsunematsu; Uryu & Itoga Jurisdiction: Japan $1.4 BLN Funding for Adani Enterprises and EdgeConneX’s data centres Deal Type: Project Finance Firms: A&O Shearman; Cyril Amarchand Mangaldas; Milbank; Saraf and Partners Jurisdiction: India confident that China’s economy will gain from the modernised Company Law in the long run. Take changes to share capital as an example. Under the new law, shareholders of an LLC are now required to pay their entire subscribed capital contribution within five years, while a JSC can issue multiple classes of shares with differentiated shareholders’ rights. Shen believes the new rules will turn JSCs into a more popular corporate form by bringing the capital structure of JSCs in line with international practice. u $1.3 BLN KKR-led consortium’ acquisition of STT GDC Deal Type: M&A Firms: Freshfields Bruckhaus Deringer; Latham & Watkins; WongPartnership Jurisdictions: Singapore, U.S. $1.1 BLN Asahi Kasei’s offer to buy Calliditas Therapeutic Deal Type: M&A Firms: Cleary Gottlieb Steen & Hamilton; Gernandt & Danielsson Advokatbyrå; DLA Piper Jurisdictions: Japan, Sweden $1 BLN OCBC’s offer to buy out Great Eastern Holdings Deal Type: M&A Firms: Allen & Gledhill; WongPartnership Jurisdiction: Singapore $870 MLN CMC’s acquires 40 percent stake in HKT Trust & HK Deal Type: M&A Firm: Clifford Chance Jurisdictions: China; Hong Kong
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