On the Legal Methods for Foreign Shareholders to Withdraw from Sino-Foreign Joint Ventures


  •  Shu Xue Jia    

Abstract

Recent years have witnessed a growing number of Sino-foreign Joint Ventures from which the foreign shareholders are willing to withdraw. There are two methods available for shareholders to withdraw from a joint venture according to the Chinese laws and regulations: namely equity transfer and corporate dissolution. Foreign shareholders should take into account the company’s specific situation and the goals and effectiveness they want to achieve when deciding on the best way to withdraw. Usually equity transfer is deemed to be the first choice.


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