Joint ventures (JVs) present investors with a unique advantage in a new market or prime a business for continued long-term success. However, often inadequate thought is given to the future possibility of a corporate deadlock, which bears a clear risk to business operations.

According to publicly available information from adjudication documents, over half of the more than 20,000 corporate related disputes in China’s Mainland in 2021 were related to company management and governance. Such disputes, including disputes over shareholders‘ right to know, the legality of internal resolutions and procedures, and the damage to corporate interests by shareholders and executives, can undermine the trust among shareholders, hinder the long-term stability of a company’s operations, and can lead to a corporate deadlock.

As a shareholder of a JV, how can you exercise your shareholder rights and supervise the normal operation of it to avoid the loss of control and the occurrence of a deadlock? What measures can you take to protect your legitimate interests when a deadlock is inevitable?

In this upcoming webinar, Chenchen Liu, Assistant Manager of Business Advisory Services, and Ivy Gu, Manager of Audit and Corporate Accounting Services, will help you to better understand what leads to a JV deadlock, and what countermeasures shareholders could take to resolve the situation.

Outline:

• Overview of corporate related disputes in China
• What counts as a JV deadlock, how it is formed and what are the financial signals
• Impact of a JV deadlock on shareholders and its countermeasures
  • How will shareholders be affected if a JV encounters a deadlock?
  • What can be done to prevent a deadlock from a legal and financial point of view?
  • Actions shareholders can take when deadlock occurs
• Q&A