Waffen SS
BANNED
- Joined
- Aug 16, 2009
- Messages
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If any CHINESE or any FORIEGN firm is contracted for any kind of development project:
1. It must work in partnership with local investors or entrapreneurs.
2. It must be compelled to undertake social projects (school, hospital etc.) in the locality instead of paying taxes.
3. Vocational training centre must be developed by the company.
4. If the company has a huge investment, then some of its investment should be treated as EQUITY (shares) and some of it be treated as SECURED DEBT. In this way, a company will not become the MAJOR SHAREHOLDER.
According to corporate laws, a SHAREHOLDER is considered an owner and thus, can influence DECISION MAKING through the Board of Directors. While a CREDITOR (one who has given debt) can only ask for interest and repayment of his debt; and has little say in decison making, if any.
If the foreign company's investment can be divided into debt and equity, it will dilute its power. At the same time, the company can earn decent profit and interest and thus the INCENTIVE to invest remains intact.
1. It must work in partnership with local investors or entrapreneurs.
2. It must be compelled to undertake social projects (school, hospital etc.) in the locality instead of paying taxes.
3. Vocational training centre must be developed by the company.
4. If the company has a huge investment, then some of its investment should be treated as EQUITY (shares) and some of it be treated as SECURED DEBT. In this way, a company will not become the MAJOR SHAREHOLDER.
According to corporate laws, a SHAREHOLDER is considered an owner and thus, can influence DECISION MAKING through the Board of Directors. While a CREDITOR (one who has given debt) can only ask for interest and repayment of his debt; and has little say in decison making, if any.
If the foreign company's investment can be divided into debt and equity, it will dilute its power. At the same time, the company can earn decent profit and interest and thus the INCENTIVE to invest remains intact.