Compliance and Corporate Governance in China

1. Corporate Governance and Compliance in China Nathan Kaiser Shanghai, September 3, 2009 www.eigerlaw.com

3. What laws and regulations may apply? – more than you thought…

4. Preventive measures – very cost-effective

5. Responsive measures – less cost-effective...

7. Focus on FIE

8. Internal fraud – „à la Chinoise“

9. Environmental issues – „à la Chinoise“

10. Food issues – „à la Chinoise“

12. Accounting fraud

13. Fraud at POS

14. Kickbacks to suppliers

15. Kickbacks from customers

16. Competing activities

17. Breach of confidentiality

19. „guanxi“ as cornerstone of business model?

20. Lack of enforcement by judicial apparatus

21. Immature HR market: Positions of power combined with low salary

22. ... and the opposite

24. Criminal Code of Switzerland, Germany, etc.

25. Listing Rules in Switzerland and the US

26. Money Laundering Acts of Switzerland and Hong Kong

27. US Foreign Corrupt Practices Act

29. OECD Convention on Corruption

30. Hong Kong ICAC

31. Specific industries: construction, pharma, food, logistics, etc.

32. Government contracts, public biddings

34. verify SAIC, TM, domain names and similar registration documents

37. (regular) training

39. facts and information gathering

40. Coordination with service investigators, (external/internal) CPA, attorneys, (external/internal) IT personnel

41. Once the facts are clear, establish the law...

42. then prepare options and scenarios, game plan

44. Know the media!

45. Know thy law!

46. Know thy enemy!

47. Use competent external help and specialists

48. Strike a balance: formal and informal actions