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Common legal mistakes made by Chinese companies assigning staff to the UK

Laurel Zhang of Sherrards Solicitors explains in this video blog that Chinese companies must ensure contracts are drafted in accordance with English laws to avoid damaging disputes.

The need to get it right from the start

"When a dispute occurs, often it is already too late - Chinese companies must ensure contracts are drafted correctly before they start doing business in the UK." Laurel Zhang, solicitor, Sherrards Solicitors

The biggest mistake made by Chinese companies entering the UK and sending employees to the jurisdiction is a failure to consider that contracts must be drafted in accordance with local laws.  

Laurel Zhang, solicitor at Sherrards Solicitors in London, and a member of the alliance's Global Mobility Services Group, comments: “In general, I often see Chinese companies using Chinese legal templates for key documents such as the shareholder agreement, with the drafting done by a Chinese lawyer in China.” 

Watch the video

Disputes uncover fundamental problems

As Zhang explains, when things turn sour and a dispute arises, and the Chinese business then seeks counsel from an English solicitor, it can often be too late and the damage is already done: “At this point, we would always advise the business to redraft their agreements such as shareholder agreements or articles of association, ensuring that they are drafted in accordance with English law.”

For advice on doing business in the UK

Laurel Zhang is available to advise Chinese businesses involved in trading with the UK (and vice versa) and will ensure the legal aspects are addressed correctly from the start.