May 14, 2020

People's Republic of China

People's Republic of China

Business Organization and Securities Laws of the People's Republic of China
      Henry R. Zheng, 43(2): 549–619 (Feb. 1988)
As foreign investment in China has grown over the past decade, China's law of business organizations has been changing. Economic reform has led to greatly decentralized government control over domestic enterprises, and the introduction of the concept of legal person has been central to the new laws and regulations governing business organizations. This Article reviews these laws with an emphasis on how they affect foreign investment enterprises.

SEC Enforcement Actions and Issuer Litigation in the Context of a "Short Attack"
     Charles F. Walker and Colin D. Forbes; 68(3): 687-738 (July 2013)
Issuers faced with a short attack—short selling of the issuer’s stock combined with the spread of negative rumors—may contemplate defensive strategies such as litigation and contacting government regulators, in addition to the investor and public relations efforts that are typically utilized in the wake of negative media coverage. Precedent calls for caution in these circumstances, as the record shows that the results of such strategies are mixed, with the SEC often turning its investigative focus to the issuer, and with costly litigation frequently resulting in compromise. This article begins with a discussion of the recent history of regulatory and legislative efforts to address concerns around short attacks and “naked” short selling. It then turns to a discussion of the SEC enforcement cases and private litigation relating to short attacks, and concludes that the SEC has appropriately brought enforcement cases only in clear-cut instances of fraud, while policing the margins through enforcement of the technical requirements of Regulation SHO. The article shows that the SEC enforcement record in this area, and the proof issues generally attendant to these cases, present important considerations for issuers who perceive themselves under siege in a short attack.