How Chinese investors can avoid problems with investments in Australia
中国投资者如何避免投资澳大利亚遇到的问题
Sharp spike in China outbound deals
中国对外交易的急剧增长
Chinese companies continue to develop for offshore deals. The value of China’s outbound M&A deals reached $32.1 billion in the first 6 months of 2014, up 40% on the previous half. And Australia remains a key destination for Chinese investment. The value of China’s announced outbound deals in Australia during the first half of 2014 was $2.4 billion, up 42% on the previous six months. Privately owned enterprises in China are taking an ever increasing share of the outbound deal pie, experiencing a triple-fold increase in deal value during the same period. This trend is set to continue as Chinese companies seek diversified investment opportunities and stable destinations for their capital, and as they look offshore for new growth potential, new technologies, reliable products and sustainable supply chains.
中国企业对离岸交易持续上升。 2014年上半年，中国海外并购交易额达到321亿美元，比前6个月增长40％。 澳大利亚仍然是中国投资的主要目的地。 2014年上半年，中国已宣布的在澳对外交易价值为24亿美元，比前六个月增长42％。 中国的私营企业在对外交易中的份额越来越大，其同期交易额增加了三倍。中国企业在寻求多元化的投资机会和稳定的资本目的地，在向海外寻求新的增长潜力，新的技术，可靠的产品以及可持续的供应链，因此这一趋势还将持续下去。
Where deals are done, disputes will arise
有交易就有纠纷
The sharp jump in Chinese investment in Australia has inevitably resulted in an increase in shareholder disputes. This comes as no surprise and replicates what has been experienced in the growth of disputes between Chinese parties investing offshore through, for example, the British Virgin Islands and Hong Kong. Already, in the first two months since I have returned from Shanghai to work in Australia, I have been involved in several shareholder disputes between and/or involving Chinese shareholders in Australian companies. Disputes tend to involve concerns over access to information and dissatisfaction with decisions at the board level, including in respect of dealings with shares in the company and company assets. Unfortunately, many Chinese investors fail to consider appropriate (if any) risk abatement strategies when making investments in Australia, and this greatly limits their ability to resolve successfully their grievances as shareholders.
中国在澳投资的急剧增长不可避免地导致股东纠纷的增加。 这并不奇怪，并且重蹈了中国各方通过英属维尔京群岛和香港等地的对外投资所产生的争议的覆辙。 我从上海回到澳大利亚工作仅两个月，就已经多次参与了澳大利亚公司的中国股东之间或涉及中国股东的股东纠纷。 争议往往涉及对信息获取的担忧以及对董事会层面决策的不满，包括公司股票和公司资产的交易。 不幸的是，许多中国投资者在澳大利亚投资时未能考虑适当的（如果有的话）风险减排策略，极大地限制了他们有效解决其作为股东所遇到问题的能力。
The importance of smart structuring
明智的股份结构的重要性
Chinese investors often find themselves as minority investors in Australian entities, frequently alongside other Chinese investors. Sometimes there are strategic, commercial and financial reasons for opting for a minority stake, but there are many instances where a lack of awareness on the part of Chinese investors has impeded their ability to ameliorate the risks doing business in Australia. Confucius once stated with consummate wisdom, “real knowledge is to know the extent of one’s ignorance”. Many Chinese investors have simply not understood, for example, that overseas companies wishing to carry on business in Australia may elect either to register a subsidiary or establish a branch office by registering themselves as a foreign company in Australia.
中国投资者经常作为澳大利亚实体中的中小投资者，并伴有其他中国投资人。 有时选择少数股权是出于战略、商业和财务方面的原因，但在很多情况下，中国投资者缺乏相关意识，以致难以在澳开展业务的过程中降低相关风险。 孔子至理名言，知之为知之，不知为不知，是为知也。 许多中国投资者不了解想要在澳大利亚开展业务的海外公司其实可以选择注册子公司或者注册成为澳大利亚的外国企业从而建立办事处。
It is a truism that we view our world based largely on our own perspective and experience. As a matter of Chinese law, foreign companies cannot own and operate assets in China without first establishing a subsidiary in China. Therefore, many Chinese businesspeople automatically, but wrongfully, assume that they must set up a subsidiary in Australia to do business in Australia, even if it requires them taking a minority position with other investors.
我们对世界的认知确实在相当程度上是建立在我们自身的角度及经验之上的。中国法律规定外国公司如果不首先在中国设立子公司，就不能在中国拥有和经营资产。因此，许多中国商人先入为主地认为他们必须在澳大利亚设立子公司才能在澳大利亚开展业务，甚至要求他们与其他投资者一起成为少数股东。
In Australia, although business lobby groups are capable of influencing government, there is a clear demarcation between business and government. It will not simply be the case that good government relationships will provide a cure for poor commercial and legal preparation in making investments in Australia.
在澳大利亚，尽管商业游说团体能够影响政府，但商业和政府之间存在明显的界限。与政府良好的关系无法弥补在澳大利亚投资时在商业和法律方面准备的不足。
Prevention is better than cure
预防强于治疗
Indeed, prevention is usually more effective and certainly cheaper than a cure. Chinese investors in Australia would do well to seek professional advice on how they can, for instance, buttress the protection of minority parties and how they can best structure their Australian investments. If Chinese investors do set up subsidiaries in Australia (and especially where they do so as minority investors), they would be prudent to do the simple things well, such as:
实际上，预防通常比治疗更有效，当然也更便宜。 例如，在澳大利亚的中国投资者最好就如何能够支持保护中小股东以及如何最好地构建他们的澳大利亚投资寻求专业建议。 如果中国投资者确实在澳大利亚设立子公司（尤其是他们作为少数股东投资的公司），处理好简单的问题才是明智的做法，例如：
ensuring that they negotiate contractual arrangements which protect their rights and interests;
保证以合同条款的形式保护其权益;
agreeing upon the operation and governance of the Australian company in constitutional documents, whose binding effect is recognised and enforceable in both Australia and China;
在公司章程中就新公司的运营及管理达成协议，从而承认文件的约束力，且保证其在澳中两国的强制力；
negotiating clear and strong safeguards in the relevant documents; and
在相关文件中规定清晰有力的保护措施
maintaining a copy of the relevant contracts and documents (Australian corporations law does provide a shareholder’s right to obtain a copy of an Australian company’s constitution, but it is always easier if the shareholder protects their own right upfront by keeping a copy in their possession).
保留相关合同及文件的副本（《澳大利亚公司法》确有规定股东获取澳大利亚企业章程的权利，但股东事先保存一份副本，从一开始就保护自身权利，以便事半功倍）
To the extent possible, Chinese investors would also be wise to:
在可能的情况下，做到以下几点会是中国投资人的明智之举：
seek representation on the board of directors of the Australian company (in Australia, company directors have the power to manage the business of the company. Subject to specific requirements of the company’s constitution, directors are not required to consult with shareholders or obtain the consent of shareholders before making decisions about the company which the directors are empowered to make, including – for instance – the issue of shares in the company or the sale of company assets);
争取在澳大利亚公司的董事会中占据一席之地（在澳大利亚，公司董事有权管理公司的业务。只要符合公司章程的具体要求，董事有权对公司事务进行决策，其决策前无需咨询股东或征得股东的同意。包括，举例而言，发行公司股份或出售公司资产;
adopt a structure that allows for a degree of disproportionality between decision-making powers and equity involvement;
采用的结构能允许决策权与股权参与之间存在一定程度的不成比例；
include in the shareholders’ agreement and the Australian company’s constitution explicit “information rights” as to ensure the investor has unobstructed access to the company’s financial, operational and other important information (depending on the type of company, Australian corporations law provides shareholders with limited rights to inspect the books and records of the company, but this may require the shareholder to apply to the court for an order authorising the shareholder (or another person on the shareholder’s behalf) to inspect the books of the company);
在股东协议和澳大利亚公司的章程中明确规定“信息权利”，以确保投资者能够畅通无阻地获取公司的财务，运营和其他重要信息（根据公司类型，澳大利亚公司法规定的股东检查公司账簿和记录的权利是有限的，股东可能必须向法院申请法令以授权股东（或代表股东的其他人）检查公司账簿;
provide for protections in the company’s decision-making procedures, as set forth in the shareholder’s agreement and the company’s constitution (e.g., specify a right to, and proceedings for, summoning regular and interim board and/or shareholders’ meetings, ensure that the quorum of any board meeting consists of at least one director appointed by the minority shareholder, and make sure that sufficient notice is given to directors before board meetings, etc);
为公司的决策程序提供保护，并在股东协议和公司章程中进行规定（例如，规定召集常规和临时董事会和/或股东大会的权利和程序，确保董事会会议的法定人数至少由少数股东委任的一名董事组成，并确保在董事会会议前提前足够长的时间向董事们发出通知等;
provide for anti-dilution controls in the shareholder’s agreement and the company’s constitution;在股东协议和公司章程中规定反稀释控制
specify certain “reserve powers” of the board/shareholders’ meetings which require unanimous or special majority approval, or include veto rights over reserved matters so that the minority shareholder can block undesirable resolutions in respect of material transactions or company changes;
规定某些董事会/股东大会中必须获得一致或特别多数批准的“备用权力”，或对保留事项的否决权，以便少数股东能够抵制他们不希望通过的有关重大交易或公司变更的决议
include in the relevant documents exit mechanisms (e.g. put options, tag along rights) or similar arrangements (e.g., buy-out option, Russian roulette) so that the minority investor has a way out of a bad business or a soured relationship, or a way to squeeze out an uncooperative partner;
在相关文件中纳入退出机制（例如，出售选择权，尾随权）或类似规定（例如，买入选择权，俄罗斯轮盘），以便少数投资者能够摆脱糟糕的业务或恶劣的关系，或者让不合作的合伙人出局
include in the relevant documents a termination right which captures deal-specific circumstances in addition to statutory termination events; and
在相关文件中包括终止权利，该权利除了法定终止事件外，还包括特定交易的情况
play an active role in the management of the company or place appropriate limits on the authority of management if it is not possible to play an active role in the management or appointment of management.
积极参与公司管理，如果不能做到积极参与公司管理或对管理层的任命，则对管理权限施加适当限制
Be prepared
未雨绸缪
Although Australian law does provide mechanisms for upholding the rights and interests of shareholders (and minority shareholders in particular), it is much easier for Chinese investors to take smart precautions when making an investment and during the lifetime of the investment than it is to rely on Australian law to protect such rights and interests when a shareholders’ dispute arises. Furthermore, if a shareholders’ matter does become contentious, courts and arbitration tribunals are more inclined to support the rights and interests of minority shareholders who have taken steps to protect their rights and interests when documenting and implementing the investment. As another famous Chinese saying goes, “preparation forestalls calamities”.
尽管澳大利亚法律确实提供了维护股东（尤其是少数股东）权益的机制，但中国投资者在投资时和投资期间采取明智的预防措施要比发生股东纠纷时依赖澳大利亚法律对此类权利和利益的保护更容易。 此外，如果股东方面的事务确实出现争议，法院和仲裁庭更倾向于支持在起草文件和实施投资时已采取措施保护其权益的少数股东。
Contributor: Holding Redlich
Disclaimer: This article is contributed by local law firm Holding Redlich as a general reading, if you have any problems which need be solved, you need go to your lawyer or expert and not take any of this as action and reference for your work ; Australia China Business Magazine will not take any risk and/or responsibility for you.
申明：本文由澳大利亚专业律所撰写，仅供简读，如你有任何需解决的问题，请咨询你的律师或专业人士，澳中商刊不对你负有任何责任与义务。
