Anatomy of a Corporate Hijacking with DUSA, the European Association of Suzhou

Chet Scheltema, International Business Advisory manager of Dezan Shira & Associates’ Beijing Office, will present to DUSA (The European Association of Suzhou) on June 12 for their “Captain’s Dinner” series. Chet will discuss with DUSA executive members his article entitled “Anatomy of a Corporate Hijacking: How Your Chinese Company Can be Hijacked and How To Prevent It”.

Chet will describe a number of scenarios where foreign invested enterprises have suffered managerial failure and loss of control and explore relevant risk factors and mitigation strategies. In particular, he will address:

• Overdependence on one, key local manager or group of managers
• Legal representative position and associated risk factors
• Challenges in removing managers or the legal representative
• The importance of properly managing the corporate seals or “chops”
• Operational weak points: VAT invoices, financials, banking, key asset management, etc.
• Determining the appropriate level of foreign managerial oversight