International Law

Financial credit and due diligence checks on individuals in China

By Andy Scott

By Chris Devonshire-Ellis

We are often asked as a firm to establish the facts of an individual?s reputation in China, and whether they have any criminal record or have faced other legal issues while acting as company officials, directors or shareholders. Unlike much of the West, such information is not generally available on public record, making the task of obtaining credible information rather difficult. Interestingly however, it can indeed be done, and extends not just to the records of Chinese nationals as officials or directors of companies in China, but also that of foreigners holding such positions in China as well.

Within the State Administration of Industry and Commerce (SAIC) there is a little known division referred to as the Business Registration Authority. This body maintains records of the activities and behavior of all companies in China, both private, listed and SOEs, including files on all appointed directors, officials and shareholders as individuals. Disputes or run-ins with government departments, details of litigation or other legal issues, and other pertinent matters concerning the record of that individual when being in a responsible position in running a company in China are kept by this department. Criminal activities can mean such individuals can be banned from operating as company officials or directors in the future. (more…)

Full post as published by China Briefing Blog on December 13, 2007 (boomark / email).