Chapter 16
The legal process for business cases in China is outlined here.
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Discuss with your lawyer.
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Sign a contract with your lawyer.
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Prepare legal documents and evidence with your lawyer.
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Let lawyers submit to the court online.
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The court will check all infos, then the court will decide if they support your request.
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If the court supports your request, then they will notice they accepted your application.
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The judge will call lawyers of both sides to discuss.
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Above all. The judge will try everything to balance both sides instead of closing the company.
The local court promptly processed my application, which is supported by evidence showing that SB should not overcharge HR salary for himself after receiving equity and obtaining another job in the Pudong area.
Then lawyers are discussing the details about reconciliation based on how I gave up the punishment clause of 1RMB to take over Partner SB`s share because it impacts his leadership. I’m OK.
My lawyer is a young gentleman who studies in both Shanghai and Singapore. He works diligently to negotiate for me, and he is not afraid to challenge my opinions if he has questions about them. I appreciate his honesty.
During the negotiation, our part-time finance colleague mentioned to me that the Hong Kong tailor was joking about me losing the case soon. I am quite concerned that they may be playing games. So, I urged my lawyer to provide me with Partner SB Lawyer’s phone number. After they discussed. I got their lawyer`s number.
When I called him to verify information, he refused to speak with me. Then I texted his lawyer explaining that I only wanted to negotiate a better price for my shares. Soon after, his assistant called me back and confidently suggested that I was wasting time due to my lack of legal knowledge. I tested her that if they would redo some shareholders meeting records. She didnt give any more information. I was shocked by this response.
I think they might cancel their current business license with their new license. They have hired a strong lawyer this time. I’ve had similar experiences in the past when helping others, so I took two immediate actions without talking to my lawyer:
1.I update the possibility mentioned in the message to the landlord’s side. This is because applying for a new license will require a change in the lease from the landlord.
2.I sent an email to all shareholders regarding information I received from their lawyer about the possibility of fake documents being created for the shareholder agreement and a change in license. I made it clear that if this were to happen, I would need to reconsider our solution based on who signed off on it. I am confident in my decision as our chef has assured me of their support in finding a resolution.
No one replied or they lost again or I lost. Another day. My lawyer said that they agreed not to take other fights. He couldn`t believe what I had done.
My lawyer was relocating to GZ before the court date. I asked him not to share any information with their lawyer, and he agreed. On the day of the court, his colleague came to support me as well. It is a big taboo to change the general before the battle. I need to keep sure their lawyer won`t change his strategy in case he heard my lawyer was leaving. You cannot celebrate until you make it happen.
When I arrived at the court, I saw partner SB with his lawyer and our shop manager in the lobby. I greeted them with a friendly “good morning,” and he responded with a big smile. However, it seemed to me that he was trying to shift the responsibility for the legal case onto others instead of taking it on himself.Its him or its myself in side this mirror.
The court session begins, with judges questioning both sides. Having previous experience with Victor and Monsieur’s labor court cases, I remain calm at the moment. Partner SB’s lawyer charges by the hour, spending around 4 hours going through the contract clause by clause, despite not speaking fluent English. In the end, Partner SB turns to me for advice. It’s ironic - I want to respond by asking him why we are in court if he can trust me.I din`t do that but explaining to him.
After the court session ended, we were able to sign a new deal. Instead of saying goodbye to my partner SB, I decided to bid farewell to his lawyer as I am uncertain if they will have future collaborations. Fortunately, I received my payment on time. Our legal documents are still in the process and have not been finalized yet.
There is no absolute good or bad. Different perspectives lead to different actions. Our judge was not surprised by partner SB’s decision to bring the chef and manager along with the designer. I am also okay with it, which is why I agreed to give away my shares three times before any dividends were distributed. It’s important for everyone to have a red line in business, otherwise you may be taken advantage of until last penny from your part of investment.
From this legal case.I have learned so many things:
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Don`t invest in restaurants during a low economy because your partner might break the contract.
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Don`t speak out the truth from your experience during construction or operation if you cannot wake up others who have no experience.
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Don`t care about your operation partner if he took commission from a designer. You share loss with others at your small percentage. No fish in pure water.
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Don`t do business with a super alcoholic.
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Accept new changes on shares 3 times. Then you fight back with evidence based on your contract or you will be eaten.
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Forget the spirit of contract some time in a restaurant.
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Use companies to invest instead of your personal info. Easy to change.
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Over pay to chef and shop manager with shareholders money for their support
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Don`t play people around and no one is stupid.
Another important detail, I noticed the attitude of partner David’s wife. After David’s funeral, she seemed to realize that Suma had received information from her and then challenged me in front of everyone. She did some makeup which turned out to be a key piece of evidence in this case. After David passed away, she took over his phone for personal use, like having access to oversee the shareholders’ WeChat group.
It felt like playing a video game with all the world’s secrets revealed. I also observed how partner SB lost their temper with me inside that group with F&ck and how SB drove the HK tailor to confront me in front of themselves. The hk tailor is the wire-controlled puppet of SB.Nice of them.Mr.Zhao ben shan and xiao shen yang style.Hahaha.
Additionally, Mathild tried to balance everything by attempting to stop partner SB from stealing the chef and manager in a polite manner.At least Mathild tried to speak out the truth about partner SB broke contract and he didn`t push more because promotion of his wine business is under control of operation partner SB and shop manager.After partner David past way.He had no choice to chose side of partner SB.
Luckily, I have all the pictures and screenshots from this kind lady who helped me for some reason. I am grateful for her assistance and believe that the landlord has a good relationship with partner David’s family and will protect her on their behalf going forward.
Our legal issue started from 2years ago.Its about the time which Russia started to fight with Ukraine.Its funny to compare with this international geo-politic war. For sure I`m the Russia this time.We got French who tried to balance but change side just like what Macron did in Moscow.We got chef from easten Europe who worked hard for money and forgot visa renew.We partner SB as a pure White boy who leads the fight behide the hk tailor and others.just like USA&Nato pushes Ukraine.I appreciate this lesson a lot about respect human nature.
In the end. Why am I so serious this time? Before, I was not that serious at all.I have no idea about so many legal parts.I do whatever my clients want. Thanks a lot to this mirror from this case.Bye.All of the partners there and Mr. David.
I will take a short break and Please stay tuned for more lessons coming up. Thank you for your time and care.