The Cause And Solution Of Corporate Deadlock In Foreign Invested Enterprises

Foreign investment is essential for the industrial modernization and economic development of China. The main forms of foreign invested enterprises in China are wholly-foreign owned enterprises and Sino-foreign joint ventures which can either be equity joint ventures or cooperative joint ventures. The operation of such enterprises may encounter many issues due to the characteristics of foreign invested enterprises and among which corporate deadlock is one of the most severe problems. Corporate deadlock refers to a situation where serious conflicts or disputes occur among company owners or directors and none of them wish to compromise. The authority of foreign invested enterprises, in such case, the board of directors comes into confrontation and no decision can be made according to the statutory procedures. Such a situation may further affect the company's operation and even make the company collapsed.Focusing on the provisions and remedies of corporate deadlock in foreign invested enterprises, this thesis explains the definition and characteristics of foreign invested enterprises deadlock and further elaborate the causes of deadlock based on the natures of such enterprises. For the purpose of providing solutions of foreign invested enterprise deadlock, this thesis then explains various situations of such deadlock and further gives both practical provisions and remedies according to the laws of foreign invested enterprises in China.