The State Administration of Foreign Exchange (“SAFE”) issued a circular (Hui Fa  No. 19) on 28 April 2013 to release the Measures on the Administration of Foreign Debt Registration and the Practice Guidelines for Foreign Debt Registration (“Circular 19”). Circular 19, effective 13 May 2013, simplifies the administrative procedures for foreign debt registration and represents another step in a broader series of reforms involving China’s foreign exchange control regime (Please click here for more information on the reforms). Under the new regime, enterprises are required to carry out the foreign debt registration process with a local SAFE, while the procedures to open or close a foreign debt account, to withdraw foreign debt proceeds, to convert foreign exchange, and to repay a foreign debt no longer require SAFE approval and can be completed at a designated foreign exchange bank. Circular 19 also clarifies the rules on incurring and using a foreign debt. For example, it is no longer necessary to register an advance or deferred payment pursuant to a foreign trade transaction as a foreign debt. A foreign invested enterprise (“FIE”) may incur a foreign debt after its foreign investors have contributed the first installment of the FIE’s registered capital, but the amount of foreign debt is capped at an amount equal to the ratio of paid-in capital, multiplied by the FIE’s foreign debt quota, i.e. the difference between the FIE’s amount of total investment, less its registered capital. An FIE may use the proceeds of a foreign debt for goods and services within its business scope and for other purposes, such as debt restructuring and equity investment under limited conditions. More…
The Shanghai Higher People’s Court Intellectual Property Tribunal, an intellectual property appellate court, recently published the Guidelines on the Adjudication of Disputes Involving Rewards and Remuneration for Inventors or Designers of Service Invention Creations (“Guidelines”) to assist Shanghai’s lower courts to resolve disputes involving claims for rewards or remuneration by inventors or designers of service inventions. Despite the revisions to the Patent Law of the People’s Republic of China and its implementing rules in recent years, it has proved difficult for the lower courts to balance the interests of employers and employees in this area. The Guidelines apply only to service inventions created in mainland China, but they permit inventors and designers to claim rewards or remuneration from their employers wherever the company applies for a patent, i.e. in China or abroad. The Guidelines limit an inventor or designer’s right to make a claim where the invention is commissioned by or created in collaboration with a third party and the inventor or designer is not employed by such third party. More…
On 3 July 2013, the State Council approved the establishment of the China (Shanghai) Free Trade Test Zone (“SFTZ”), which will be comprised of four existing free trade zones in Shanghai. By including the word “China” at the beginning of the SFTZ’s official name, we believe the central government intends to use the SFTZ to expand the liberalization of the SFTZ to other free trade zones in China and to promote China’s dream of making Shanghai the center of the global economy.
Pursuant to recently published policies, as well as those still in the legislative process at the central and local levels, the SFTZ may: More…
Arnstein & Lehr Chicago Partner Michael L. Gesas recently contributed to a Law360 article titled, “5 Tips for Bankrupt Companies Looking To Sell Assets,” that was published on October 1. The article discusses about how Chapter 11 filings across the country have decreased, but distressed companies are still utilizing asset sales under Section 363 of the U.S. Bankruptcy Code. By doing so, this protects the value of the individual’s business and avoids liquidation. However, struggling businesses need to carefully construct their approach to a sale to avoid being taken advantage . The article provides five recommended practices given by bankruptcy professionals for distressed companies considering a sale.
To read the article in full, please click here
Shutts & Bowen LLP is pleased to announce that Harvey Oyer’s most recent book,The Last Calusa, was awarded a Gold Medal in Florida Children’s Fiction by the Florida Publishers Association. Mr. Oyer is a partner in their West Palm Beach office.
Mr. Oyer, a fifth generation native of Palm Beach County, is an award-winning and best-selling children’s book author. His books, The American Jungle, The Last Egret and The Last Calusa, have won numerous awards and are used widely by schools throughout Florida. Mr. Oyer was also selected as the Florida Distinguished Author for 2013. More…
Shutts & Bowen’s Fort Lauderdale office is pleased to announce it is hosting a luncheon in support of Commissioner Chip LaMarca. Commissioner LaMarca is the District 4 Broward County Commissioner, up for re-election. Information on the event is below.
Kindly RSVP to Leigh Anne Blanchette at firstname.lastname@example.org.
One of the most common issues that arises at the outset of a disciplinary investigation is that of whether an employee ought to be suspended pending the outcome of proceedings.
This is an area where useful guidance can be obtained from “The Master of Suspense” himself, Alfred Hitchcock. Those familiar with his films will know how he built up tension in a slow, considered manner, deliberating over the construction of each scene and carefully planning how best to reach a state of suspense. While the suspense in Hitchcock’s films was of a very different nature, there are a number of useful pointers that can be taken when considering suspension in an employment law context.
"The man behind the shutdown: Is his district turning on him?" Al Jazeera America Steve LaTourette interviewed
McDonald Hopkins Government Strategies President Steve LaTourette was interviewed for the Al Jazeera America segment ”The man behind the shutdown: Is his district turning on him?.”
Click here for the full segment.
Healthcare Alert: Tuomey Healthcare Systems ordered to pay nearly $278 million for Stark Law and False Claims Act violations
A United States District Court judge in South Carolina has ordered Tuomey Healthcare Systems (THS) to pay just shy of $278 million for entering into prohibited contractual relationships in violation of Stark Law and the False Claims Act (FCA). Click here to view the final order and opinion.
This case originated as a qui tam lawsuit filed by one of THS’ physicians, Dr. Michael Drakeford. Stark Law prohibits, among other things, a physician who has a “financial relationship” with an entity—such as a hospital—from making a “referral” to that hospital for the furnishing of certain “designated health services” for which payment otherwise may be made by the United States under the Medicare program.