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  • 2015-12-15
  • 3 minutes Read
How to Manage the Marriage Leave?

In February 2014, Ms. Zhou asked for the marriage leave. Because Ms. Zhou got married at a late age as stipulated by the relevant law (Note: The late marriage leave would be abolished since the ‘Amendment of the Law of the People’s Republic of China on Population and Family Planning’ will come into force on 1st Jan. 2016 ), the company approved 10 days leave. Later then, Ms. Zhou got divorced. In 2015, Ms. Zhou remarried, and asked for the marriage leave again, but the company refused her application. In practice, the employers would ignore the issues related to the…

  • 2015-11-15
  • 2 minutes Read
The Circular on Improving the Policy on Extra Pre-tax Deduction of Research and Development Expenses (the "Circular") would be taken into effect on 1 January 2016

In order to encourage the domestic R&D, recently, the Ministry of Finance, SAIC, the Ministry of Science and Technology have jointly promulgated the “Circular”. Based on No.116 GUO SHUI FA [2008] and No.70 CAI SHUI [2003] (hereinafter refer to the “Old Policies”), the “Circular” has further prescribed the requirements on the details of the expenses and the control on the amortization of the expenses, which mainly includes: To expand the scope of the items which could be deducted The scope of R&D: the “Circular“has prescribed the “negative list”, in which it has sets out the activities and industries to which…

  • 2015-11-15
  • 4 minutes Read
The Trade Secrets Has not Been Used By the Tortfeasor, Can I Ask For the Loss?

Mr. Wong was the technical department manger at Company A. One day, he downloaded Company A’s food formula and the entire process drawings into his personal computer, which had violated the company’s confidentiality provisions. After that, he resigned with the reason that he would go back to his hometown. Later, Company A was informed that Wong was working at Company B, who was the competitor of Company A. After investigation, Company A found that Company B was planning to use the new technology brought by Wong to build a new production line. Company A reported to the police quickly. But…

  • 2015-11-15
  • 4 minutes Read
Issuing An Invoice Shall Be Prior to Making A Payment?

Company A and Company B had signed a “Sales Contract”, in which it had prescribed that Company A would purchase a set of machine from Company B. Later, the machine was delivered to Company A, but Company A refused to make the payment. After more than one year delay, Company B filed the dispute to the court, and required Company A to make the payment and undertake the late payment penalty. Company A defended that the contract had prescribed that the payment should be made upon receiving the invoice. Because Company B had not issued the invoice yet, Company A…

  • 2015-10-15
  • 2 minutes Read
The Administrative Provisions on Business Scope Registration for Enterprises has come into force on 1 Oct. 2015

11 years later, in order to strength the enterprises’ autonomy, and manage the enterprises by being slack at enrolment but strict at daily operation, the SAIC has amended ‘The Administrative Provisions on Business Scope Registration for Enterprises’ (The Revised Provisions) recently. The main contents include: Less requirements on the approval items The approval items have been divided into the pre-registration approval items and the post-registration approval items. The enterprise’s registration procedure could be speed up by such arrangement, and the enterprise could initiate the other non-approval items in advance. The Revised Provisions has deleted the requirement on the operation period,…

  • 2015-10-15
  • 5 minutes Read
The Shareholder’s Right to Know V.S. The Company’s Trade Secrets Protection

In order to protect the shareholder’s right to know (‘SRK’), Article 33 of the ‘Company Law ‘has stipulated that a shareholder may request to examine the articles of association, the meeting minutes of the shareholders’ meeting, the resolution of the board of directors, the resolutions of the board of supervisors, the financial reports, and accounting books. However, such documents may state the information which may be deemed as trade secrets as stipulated in the ‘Anti-Unfair Competition law’, e.g. the business plan, production management, purchase and sale information. If there is no restriction on ‘SRK’, then such right might be abused…

  • 2015-10-15
  • 4 minutes Read
Is There Any Given Period in Dealing with the Employee’s Misconduct?

In the “Employee Handbook”, Company A has stipulated while an employee asks for an emergency sick leave, the employee shall go through the formalities in 3 working days upon the completion of the sick leave, otherwise, the employee’s absence shall be deemed as absenteeism. Mr. Wang asked for an emergency sick leave, but he failed to go through the formalities. Six months later, Company A terminated Mr. Wang’s labor contract with the reason that his absence should be deemed as absenteeism, which had severely violated the company’s rules and regulations. Mr. Wang filed the dispute to the labor arbitration committee.…

  • 2015-09-15
  • 2 minutes Read
‘Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements’ (‘Amendment’) will come into force on October 1, 2015

The ‘Amendment’ was adopted at the Meeting of the Standing Committee of the National People’s Congress of the People’s Republic of China on August 29, 2015. There are several articles shall be paid attention to. Agreement shall prevail, but there is a special occasion Like the ‘Patent Law’, the ‘Amendment’ has prescribed that the agreement on the reward and remuneration shall prevail. However, for those R&D institutions that are set up by the State, colleges and universities, the standard for the reward and remuneration shall be no less than the statutory minimum standard as prescribed in the ‘Amendment’. The statutory…

  • 2015-09-15
  • 4 minutes Read
How to Deal with the Malicious Lawsuit Brought by the IPR Holder

Company A planned to engage in the production and sale of a particular device, and filed an application to the authority for qualification. During the examination period, Company B which is the competitor of Company A, brought a lawsuit on the dispute over the utility model patent infringement against Company A. In addition, Company B reported to the authority. Company B insisted that Company A was involved in an IPR infringement case, so it failed to meet the approval requirements. The strange thing was that the involved utility model patent was lack of novelty as prescribed in the patent evaluation…

  • 2015-09-15
  • 3 minutes Read
Whether the Dormant Shareholders Could Review the Company’s Accounting Books?

Mr. Wang is the dormant shareholder of a Jiangsu company. He has made the capital contribution to the company, and received dividends for several times. Because he had doubts on the calculation of the company’s profit, he filed an application in written to the company on reviewing the accounting books. However, the company refused his request. Then Mr. Wang filed a lawsuit against the company on the violation of shareholder’s right to know. Finally, Mr. Wang won the lawsuit. The dormant shareholder of a Beijing company, Mr. Zhang has faced the same situation, and filed the same lawsuit, but he…