Auditing a BCC: How Does the Foreign Party Monitor Finances?
In a joint venture company, the foreign investor sits on the members’ council and sees the books by law. In a BCC there is no such default right:…
Read article ↗FLAT Legal Journal
Foreign Investment
Cash Contributions in BCCs: Is an Investment Capital Account Required?
Whether cash contributed to a BCC must go through an investment capital account is often brushed aside because a BCC has no legal entity to hold an account…
Read article ↗BCCs with SOE Partners: Approval Notes
Signing a BCC with a state-owned enterprise (SOE) is attractive because the partner often holds land, infrastructure, distribution networks or an industry position private firms cannot match. But…
Read article ↗BCC Disputes: Resolution Mechanisms and Governing Law
The dispute resolution clause is the clause read least when a BCC is signed and most closely when the relationship breaks down. For a BCC with a foreign…
Read article ↗Foreign Party Risks in BCCs: No Separate Legal Entity
The BCC’s biggest selling point — no company to incorporate, fast deployment, a tidy exit — is simultaneously its biggest risk for the foreign investor: no separate legal…
Read article ↗Converting a BCC into a JV or 100% Foreign-Owned Company: Procedures
Many BCCs begin as a market test, and when the test succeeds the parties want to ‘upgrade’ into a joint venture or a 100% foreign-owned company to gain…
Read article ↗Assigning BCC Rights and Obligations to Third Parties
A BCC party wants to exit and hand its position to another investor: in contract terms, that is two different transactions merged into one question. Assigning rights —…
Read article ↗Liquidating a BCC: Dividing Common Assets and Final Settlement
When a BCC ends — whether by natural expiry or early termination — the parties enter the most dispute-prone phase of the entire cooperation: liquidation. There is no…
Read article ↗Early Termination of BCCs: Conditions and Legal Consequences
Terminating a BCC early is not like dissolving a company: there is no standard dissolution procedure to follow, and every consequence is decided by the termination clause in…
Read article ↗Maximum BCC Term: How Long and How to Extend?
How many years a BCC may be signed for looks like a question with a ready answer in the law, but in reality a BCC’s term does not…
Read article ↗