66 67 CHAPTER 4 CHAPTER 4 understanding of legal relationship and professional skill of handling cases. CONCLUSION AND SUGGESTIONS In practice, for non legal investments, it is necessary to clarify legal facts, accurately judge legal relationships, and determine the nature of funds. The acquisition of equity by civil and commercial entities is an investment, an increase in company capital is also an investment, and borrowing from shareholders and investing in projects is also an investment. However, these investments form different legal relationships with relevant civil entities, and therefore have different natures. Therefore, lawyers need to have the ability to go beyond ordinary parties to dissect, clarify relationships, and accurately determine non-specific legal concepts (such as investment), and cannot confuse the nature of behavior with a vague concept. In practice, some commercial entities have significant room for improvement in daily management, legal risk prevention, especially fund financing, transaction contracts, and transaction documents. Specific suggestions are as follows: 1. It is recommended to accurately express and fix the true intentions of both parties in a written contract; 2. According to the purpose and nature of the transaction, sign a written contract that records the background, purpose, and nature of the transaction, distinguish and prevent confusion between transaction subjects, clarify the rights and obligations of both parties, transfer technical knowledge and reasonably allocate transaction risks, and provide support for the resolution of possible controversy in the future. After signing the contract, continuous attention should be paid to the performance of the contract. DENG CHUANYUAN Director of ETR Law Firm dcy@etrlawfirm.com 020-37181333-7330 Deng Chuanyuan, graduated from Sun Yat-sen University with a master’s degree in law, is a senior lawyer and senior economist. He is currently the director of ETR Law Firm, the vice president of the Guangzhou Lawyers Association, the vice president of the Civil and Commercial Law Research Association of the Guangdong Law Society, and the graduate tutor of Sun Yat-sen University. Specialized in legal services in securities and capital market, energy and public goods, major and difficult cases. About the Author Contact ETR Law Firm Address: 29&10&11 (1101-04) F Chow Tai Fook Finance Centre No.6 Zhujiang Dong Road, Tianhe District Guangzhou 510623, China Tel No.: +86 2037181333 Email: etr@etrlawfirm.com Website: www.etrlawfirm.com About ETR Law Firm ETR Law Firm, founded in January 1993, is a ministerial-level civilised law firm and an outstanding national law firm. It is one of the top 10 Law firms in the Belt and Road Initiative, one of the first foreign-related legal services law firms in Guangdong province, and one of the first members of the Belt and Road Initiative Lawyer Alliance. Headquartered in Guangzhou, ETR Law Firm has 26 offices globally, including Beijing, Shanghai, Wuhan, Shenzhen, Hainan, Chongqing, Zhuhai, Zhongshan, Dongguan, Foshan and Gongbo’gyamdain mainland China, as well as branches in the US, Japan, Pakistan, Australia, Malaysia, Thailand and Cambodia. ETR Law Firm is forging a new journey, we upholds ‘efficiency, trust, and responsibility’ as the core values and cooperate with lawyers from the Guangdong-Hong Kong-Macao GBA to ensure high-quality legal services in the GBA!
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