In-house lawyers speak out • legal spend up • 5 top criteria for choosing firms • more work done in-house ISSUE 5.4 CHINA www.asianlegalonline.com 企业法律顾问现身说法 www.asianlegalonline.com DEALS ROUNDUP LATERAL MOVES IN-HOUSE VIEW REGULATORY UPDATES UK, US REPORTS ALB Special Report: Shanghai Bucking the global trend 全球金融动荡 上海逆势而上 Salary levels Pay rates up across the board 律师薪酬全盘上涨 Equities Railway IPOs keep markets on track 铁路股IPO稳住股市阵脚
The magazine for lawyers and in-house counsel with jobs, firm ratings, legal analysis and all the latest legal news and views
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
In-house lawyers speak out• legal spend up • 5 top criteria for choosing fi rms
ALB Special Report: ShanghaiBucking the global trend全球金融动荡 上海逆势而上
Salary levelsPay rates up across the board律师薪酬全盘上涨
EquitiesRailway IPOs keep markets on track铁路股IPO稳住股市阵脚
2
ISSUE 5.4
IN THE FIRST PERSON
Swings and roundabouts
More fi rms are doing more top-fl ight work and more local fi rms are receiving instructions, including as lead counsel, on international transactions
These days, casting one’s eye across the headlines of the world’s broadsheet newspapers is an easy way to kill a good mood. Across Europe and the US, pundits and economists appear engaged in a race to the bottom, each trying to out-
doom the last with predictions of calamity and turmoil brought on by credit crunches and loan crises.
Recently one British newspaper went so far as to splash across its front page a claim that the US wasn’t just headed for a recession, but had in fact already tumbled into a full-blown depression. Errant nonsense to be sure, but there is no denying the serious slowdown affecting many of the world’s major economies.
In this country, however, the numbers tell a different and far happier story. China’s GDP grew by 11.9% in 2007, according to a revised statistic, the highest growth rate since 1994. Despite the turmoil in global markets, the world’s fastest-growing major economy will continue its economic miracle, as the Asian Development Bank expects the Chinese economy to grow by 10% in 2008.
The fact is that the old rules of international economics are changing quickly and largely for the better. No longer is it true that if the US sneezes, the rest of the world catches a cold – or worse. For local law fi rms, this means that instead of scrapping over the spoils of bankruptcies and insolvencies, they are enjoying an abundance of work, especially in the M&A, capital markets and construction arenas.
With increasing Chinese domestic consumption contributing to GDP, and as multinationals continue to expand into China’s dynamic market, this growth is seemingly unstoppable.
And as the economy and market mature, so too do local law fi rms. More fi rms are doing more top-fl ight work and more local fi rms are receiving instructions, including as lead counsel, on international transactions. Unlike a few years ago, when multinationals were the biggest buyers of legal services and local fi rms had to rely heavily on referrals from their international counterparts, local fi rms are winning mandates directly from an impressive array of state-owned and private enterprises, as well as localised multinationals.
Shanghai, the host city of this year’s top legal event – the ALB China Law Awards – will soon witness this trend as the legal profession’s leaders gather on 25 April to showcase the achievements of yet another banner year.
Which is all to the good and something that should restore the cheer of readers brought low by economic news from abroad.
CHINA
“The latest ‘fi rst A then H’ model is encouraged by the domestic regulators, because it enables the issuer to minimise the pricing differences between the international IPO and domestic IPO”Yan Yu, partner at Jia Yuan, on the groundbreaking model that has set a precedent for future dual listings (p6)
“The legal service market in Shanghai is very large and growing quickly, with a tremendous amount of potential and opportunity”George Wang of Jun He Law Offi ces on the prospects for the local legal industry (p28)
“We aren’t just dealing with contractual issues as they arise, but trying to take a proactive role and adding value to the business as legal risk managers”Gillian Meller, general manager of legal at MTR Corporation, on the changing role of in-house counsel (p38)
3
www.asianlegalonline.com
Asia’s most respected monthly legal magazine Asian Legal Business (ALB) - is proud to present Business Law Asia 2008 on 19 & 20 June 2008 in Singapore. This special two day legal event brings together leading private practice lawyers and in-house legal counsel from Singapore and around the region.Business Law Asia 2008 will address the key topical issues facing legal practitioners today via a series of focused practice area workshops, plenary sessions and interactive panel discussions.
GREAT REASONS TO ATTEND:In-depth workshops focusing on the latest legal issues presented by top law firmsOpportunities to network and meet leading legal experts and colleaguesInteractive panel discussions and debates by some of Asia’s most distinguished legal speakers
Official Media Partner
ALB ASIAN LEGAL BUSINESS
Another event organised byALB enjoys alliances with the following organisations
19 & 20 JUNE 2008 HILTON HOTEL, SINGAPORE
For further information and registration, please contact Christopher, [email protected] or tel: (65) 6423 4631, fax: (65) 6423 4632
For Sponsorship opportunities, please contact Lilian Wee,[email protected] or tel: (65) 6423 4631, fax: (65) 64234 632
Presenters
Inter-Pacific Bar Association Corporate Counsel Forumwww.ipba.orgCorporate Lawyers Association
of New Zealand
Australasian Professional Services Marketing Associationwww.apsma.com.au
Indian Corporate Counsel Association
www.asianlegalonline.com/icca
www.beijinginhouse.com
ALB is a sponsor of the International Bar Association Annual Conference Buenos Aires 2008www.ibanet.org
www.scca.org.sg
Shanghai InhouseCounsel Forum
ALB is the Asia-Pacific Legal Media Partner of the IPBA Annual Conference Los Angeles 2008
DISTINGUISHED SPEAKERS AND PANELISTS INCLUDE:
BUSINESS LAW ASIA 2008Asia’s number one legal event
Leow Chiap SengGroup Legal CounselTeleChoice International Ltd
McCl
Joy Ng Ee-KiaDirector (Competition Economics)Drew & Napier LLC
))Justyn JaggerPartnerDLA Piper Singapore
Jane Niven Regional General Counsel, Asia Pacific Jones Lang LaSalle
Karen Wee PartnerWongPartnership LLP
Herman JeremiahPartnerRodyk & Davidson LLP
Patrick J. FlanaganPartnerLatham & Watkins LLP
James HarrisManaging PartnerLovells Lee & Lee
Lawrence TehPartnerRodyk & Davidson LLP
Guatam NarasimhanAssociateLatham & Watkins LLP
Alex WongOf CounselLovells Lee & Lee
Paul WongPartnerRodyk & Davidson LLP
Malcolm TanRegional Legal Counsel Infineon Technologies Asia
Pacific
Wong Taur-Jiun
Regional Counsel, Asia Pacific McAfee®
Pacifi
Thomas HickeyAssistant General Counsel
Hess Oil & Gas, South East Asiaa
Patrick AngPartnerRajah & Tann
Damian YeoDirector (Legal & Government Relations), South East Asia Pacific Nokia Pte Ltd
Nicole TanPartnerKhattarWong
Joyce FongGeneral Counsel and Company SecretarySingapore Exchange
Limited (SGX)
Long Hsueh ChingSenior AssociateKhattarWong
Limit
Erin Lyon DirectorCSR Asia
Hooman SabetiConsultantAllen & Overy Shook Lin &
Bok JLV
www.asianlegalbusinessevents.com
4
ALB CHINA ISSUE 5.4
Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Asian Legal Business can accept no responsibility for loss.
ALB
inside ISSUE 5.4
COVER STORY38 ALB In-house Survey
ALB investigates what in-house lawyers are looking for in a law fi rm
ANALYSIS
6 Equity market A pair of US$5bn rail IPOs and a host
of positive debuts keep the domestic equity market on track
12 Deals The US sub-prime crisis is causing loss of
profi t through the withdrawal of deals
16 Salary trends Keeping up with market rates could
make a difference for staff retention
FEATURES
28 ALB Special Report: Shanghai 2008
Local lawyers are taking advantage of Shanghai’s fl ourishing legal industry
44 Offshore law fi rms With China leading the way in Asian-owned offshore companies, offshore law fi rms bulk up their operations here
UPDATES18 Singapore LOO & PARTNERS 19 International tax 2008 UK budget changes AZURE TAX 20 IP
IP issues with mascots & Shanghai style
ROUSE & CO
21 ShanghaiIssues relating to management of designated accounts
LINKS LAW OFFICE 22 China
New labor dispute mediation and arbitration law of the PRC
PAUL WEISS
23 RegulatoryAnalysing China’s foreign trade agency system
TAHOTA
PROFILES14 Tian Yuan Law Firm 31 AllBright Law Offi ces 33 HaoLiWen PRC Attorneys
REGULARS10 Deals in brief• Xinyuan Real Estate launches IPO and
debut NYSE listing • Want Want launches second largest
offering to date with IPO18 News• Zhonglun W & D and Li He join forces• Beijing lawyers form special team to
support Olympics• First tax boutique makes debut
in Shanghai• US fi rm Miller Canfi eld on track to
expand to Shanghai • Fulbright boosts Asian offi ces with fi ve
CHINA RAILWAY GROUP IPO US$5.5bnFirm Lead lawyers Acted for LawJia Yuan Yan Yu, Shi Zhenjian Issuer PRCLinklaters Celia Lam Issuer HK, USKaiwen Joint sponsors and underwriters PRCDLA Piper Liu Wei, Esther
Leung, Jeffrey MakJoint sponsors and underwriters HK
Simpson Thacher Chris Lin, George Wang, Robert Holo
Underwriters US
CHINA RAILWAY CONSTRUCTION CORPORATION IPO US$5.4bnFirm Lead lawyers Acted for LawDeheng Law Offi ce Li Zhihong, Chen Jingru Issuer PRCBaker & McKenzie PH Chik, Allen Shyu Issuer HK, USJingtian & Gongcheng
Li Yuguo, Wang Yingzhe, Wang Weiguo
Underwriters PRC
Freshfi elds Christopher Wong, Sarah Murphy Underwriters HK, US
Dual listing using ‘fi rst A then H’ modelWith share markets in a delicate state, two railway groups’ multi-billion-dollar IPOs have caught the eye of investors and lawyers. The groundbreaking ‘fi rst A then H’ model sets a precedent for future dual listings
The volatility of the share markets in China has
prompted a number of com-panies to cancel or delay their public offerings in recent months. Capital markets teams from law fi rms in the region, which have been stretched thin during the boom, may have been set for quieter times in 2008.
However, here’s a piece of good news for fi rms: two recent dual listings following the ‘fi rst A then H’ model have uncovered a silver lining of the unstable market conditions.
In December 2007, China Railway Group (CRG), the largest construction company in Asia and the third largest construction contractor in the world, pioneered the ‘fi rst A then H’ model, making history on the Hong Kong Stock Exchange. The listing successfully raised US$5.5bn, making it the largest listing of A-shares and H-shares in 2007. Three months after CRG’s ground-breaking listing, China Railway Construction Corporation (CRCC) followed suit and raised US$5.4bn on its debut on the Shanghai and Hong Kong stock exchanges.
“The PRC regulators have experimented with different dual listing structures for state-owned enterprises seeking a dual listing, from ‘fi rst H then A’, ‘A+H simulta-neous’ to ‘fi rst A then H’,” said Yan Yu, one of the lead partners from the Jia Yuan team which advised on the CRG IPO. “The latest ‘fi rst A then H’ model is encouraged by the domestic regulators, because it enables the issuer to minimise the pricing differences between the international IPO and domestic IPO, as A-shares are typi-cally traded at higher prices.”
Yan, who worked closely with the is-suer and regulators, indicated that the new structure would be adopted by most state-owned enterprises (SOEs) that want to pur-sue listing of both A-shares and H-shares in the future. Many will list the entire business of the corporation in one operation.
International lawyers are seeing the same trend developing. Christopher Wong, a Freshfi elds partner based in Beijing, represented the underwriters on the CRCC IPO. Wong indicated that the need
Yan Yu,Jia Yuan
Beijing’s West Railway Station
>> NEWS
7
www.asianlegalonline.com
for PRC companies to only list in Hong Kong is decreasing as the A-share market is commanding richer valuations.
There were only six H-share listings on Hong Kong’s main board in 2007, com-pared to 17 in 2006. A number of the Hong Kong listings, including CITIC Bank and CRG, were ‘A + H’ dual listings, either simultaneously or ‘fi rst A then H’.
“China has been encouraging good qual-ity companies to list domestically as a way of raising the profi le of the local equity markets. Going forward, it will continue to be the trend,” said Wong. “The best these companies could hope for is a ‘fi rst A then H’ dual listing.”
While there is no offi cial policy or regu-lation in effect, there is recognition that companies that would be allowed to come to the H-share market will likely have to take the ‘fi rst A then H’ route.
China Pacifi c Insurance Group (China Pacific) and China National Southern Locomotive & Rolling Stock Industry Group (CSR) are reportedly planning to launch ‘fi rst A then H’ dual listings of their entire groups in the next few months.
Domestic fi rms the fi rst to benefi tThe ‘fi rst A then H’ concept is set to ensure that domestic investors benefi t from good quality companies’ strong growth and will contribute to building stronger and health-ier share markets at home. The regulator’s intentions have put domestic fi rms among the top benefi ciaries of the new policy.
As most SOE assets are situated in China and governed by Chinese law, domestic fi rms will naturally be granted the role of lead counsel to advise on restructuring, due diligence, legal documentation, A-share offer documentation, corporate and regu-latory issues, and to manage liaison and clearances with the PRC regulators.
The CRG IPO capped a great year for Jia Yuan Law Firm, which experienced a 100% increase in revenues in 2007. According
to the latest statistics of the All China Lawyers Association, Jia Yuan was ranked fi fth by revenue among domestic fi rms.
“By having participated in a number of remarkable deals like CRG IPO, our fi rm’s revenue and headcount have been boosted,” said Yan.
From commencement of the reorganisa-tion through to the listing in December 2007, the project took 11 months to com-plete. More than 10 Jia Yuan lawyers dedicated nine months to the due diligence and restructuring part of the project.
The firm was sought out at the end of 2006 by China Railway Engineering Corporation (CREC), which established CRG in September 2007 to serve as its pub-licly traded vehicle. CREC, headquartered in Beijing, owns more than 700 subsidiary companies, has over 220,000 employees and runs a wide range of businesses including surveying and designing, construction and installation, manufacturing, research and development, technical consulting, capital management as well as conducting interna-tional economic and trade activities.
“It’s a gigantic project and SASAC is very strict on quality control. The level of complexity and sophistication of the transaction required the full support of our firm’s considerable resources and expertise,” Yan said. Jia Yuan’s previous experience advising on the H-share IPO of China Communications Construction Company, one of China’s largest trans-portation infrastructure groups, was valued by CREC and the regulators, who instructed Jia Yuan in the hope that the fi rm could help smooth out the way for the ‘fi rst A then H’ listing.
Beijing-headed Deheng Law Offi ce, with abundant experience in restructur-ing large SOEs and listings, is the second domestic fi rm to cash in on the ‘fi rst A then H’ model by acting as issuer’s PRC counsel on the CRCC IPO – the largest IPO so far this year.
“China has been encouraging good quality companies to list domestically as a way of raising the profi le of the local equity markets. Going forward, it will continue to
be the trend. The best these companies could hope for is a ‘fi rst A then H’ dual listing”
CHRISTOPHER WONG, FRESHFIELDS
Christopher Wong, Freshfi elds
MORGAN LEWIS SHAKES HANDS WITH ZHEJIANG’S T&CSince August 2007, US fi rm Morgan, Lewis & Bockius has actively cooperated with local organisations to present patent seminars in a number of cities. This year, Hangzhou-based entrepreneurs will benefi t from the seminars, which will be co-hosted by T&C, one of the largest law fi rms in Zhejiang.
In March, Robert Gaybrick, co-chair, partner and senior patent attorney with Morgan Lewis, and his patent attorney colleague Liu Lijie attended a meeting with T&C partners Wang Qiuchao, Wang Lixin and Ye Zhijian. The two fi rms discussed the arrangements to present the patent seminars in Hangzhou.
LONGAN SIGNS MEMORANDUM WITH HONG KONG FIRM Beijing-headquartered Longan Law Firm and Hong Kong fi rm Johnny KK Leung & Co have signed a memorandum of cooperation to take advantage of opportunities resulting from the economic integration of Hong Kong and the mainland.
Under the memorandum, the two fi rms will exchange lawyers and cooperate on cross-border transactions and other legal issues. The two fi rms will investigate further ways to cooperate in the future to provide clients with high quality and effi cient legal services.
Johnny KK Leung & Co was founded in 1990 and advises on criminal, commercial and intellectual property matters as well as providing notary services.
Kaiwen Law Firm and Jingtian & Gongcheng also played integral roles ad-vising the joint sponsors and underwriters on the CRG and CRCC IPOs respectively.
In addition to the listing work, more business opportunities are set to follow. Yan said: “After the IPO, we are hoping to receive more mandates from the client in the areas of follow-on fi nancing, M&A and outbound investment.”
Up to the challengeAlthough the ‘fi rst A then H’ structure is an improvement on the fl awed ‘A+H simulta-neous’ listing adopted by ICBC and CITIC Bank in their IPOs, it is just as challeng-ing, if not more so, than its predecessor.
The spirit of the ‘fi rst A then H’ listing is that the two listings occur fairly close together in time, so that they can be seen as a single offering and can therefore maximise the H-share pricing. To ensure the best timing, all legal advisors need to make sure their resources and expertise are up to the challenge.
“Compared to simultaneous dual listings, in which Hong Kong and China regulatory bodies effectively ran the review processes in parallel and it was easy to coordinate with the two regulators, the ‘fi rst A then H’ structure is a lot more challenging,” said Wong, whose fi rm also worked on the ICBC and CITIC Bank IPOs.
“The review process of the A-share offer-ing application by the CSRC starts earlier, and takes less time to approve than the H-share offering approval process of the Hong Kong Stock Exchange. The A-share offering easily races ahead of the H-share offering, and it could come to a point when the A-share offering application has gone so far that it becomes very diffi cult to change things to respond to the Hong Kong Stock Exchange’s questions.”
The regulators in Hong Kong and China do have channels of communication, but they do not know exactly what is happen-ing on the other side. It is up to the legal advisors to help both regulators under-stand the timing and issues, and lead them through the process to make sure that one does not leave the other behind.
“The real challenge for us is to shorten the regulatory timetable in Hong Kong from the typical 10 to 12 weeks to fi ve weeks, which we did successfully,” said Wong.
Support from the Hong Kong Stock Exchange signifi cantly contributed to the success of the transaction, as Wong noted that the Hong Kong regulator saw the ‘fi rst A then H’ model is becoming a trend in terms of Chinese companies listing in Hong Kong. ALB
Trade date Proceeds (US$m) Deals2008 ytd 7,647 22Same period 2007 12,053 30Year on year change (%) -36
Full year 2007 64,617 124Full year 2006 16,937 65
SHANGHAI A-SHARE IPOS – PROCEEDS RAISED (US$m)
DebutTrade date Positive performance Negative performance Average performance (%)2006 57* 8 55.62007 121 3 183.32008 ytd 22 0 194.5
PerformanceTrade date Positive performance Negative performance Average performance (%)2006 63 2 151.12007 123 1 113.62008 ytd 22 0 94.1* One IPO debut price was unchanged from offer price (Air China IPO)
SHANGHAI A-SHARE IPO STATISTICS
A-SHARE IPO PERFORMANCE
RENMIN UNIVERSITY MOOTERS WIN CHINESE JESSUP CHAMPIONSHIP A team of students from Renmin University has won the Chinese national championships of the Philip C Jessup International Law Moot Court Competition (Jessup), defeating the rival team from Xiamen University in the regional fi nal. China University of Political Science and Law and Southwestern University of Finance and Economics shared third place.
Sponsored by White & Case, Fangda Partners, Lovells and the Wang Family Foundation, the Chinese Jessup competition, now in its sixth year, was held at Renmin University in Beijing.
人大赢得Jessup辩论赛中国区冠军 人大赢得Jessup辩论赛中国区冠军 来自人民大学的代表队在Philip C. Jessup 国际法模拟法庭辩论赛区域总决赛中战胜厦门大学代表队,夺得全国冠军。中国政法大学和西南财经大学并列第三名。
位居前两名的中国代表队将参加4月6日至12日在华盛顿举办的全球Jessup辩论赛。Philip C. Jessup 国际法模拟法庭辩论赛是一项国际辩论赛,参赛选手在国际模拟法庭前进行口头和书面答辩。
MALLESONS HELPS AIRWAYS BECOME GREENERMallesons Stephen Jaques has advised Cathay Pacifi c Airways and its sister airline Dragonair on a global carbon offset program, the fi rst to be launched by an Asian airline.
The FLY greener program allows passengers to voluntarily pay to offset carbon dioxide emissions generated by their fl ight using cash or frequent fl yer miles. The offset payments are used by the airlines to purchase carbon credits generated by projects that reduce greenhouse gas emissions.
Mallesons assisted Cathay Pacifi c Airways and Dragonair with the development and implementation of the carbon offset program. Climate change and clean energy partner Christopher Tung led the Mallesons team on the project.
Firm: Commerce & Finance Client: Underwriters on PRC law
• H-listing was concurrent with the Rule 144A/Regulation S global offering of Honghua Group
• The company sold 25% of its enlarged share capital, or 833.36 million shares
• The 70% institutional tranche was more than 11 times covered, while the retail tranche attracted about 28 times the number of shares on offer
• This triggered a partial clawback that boosted the size of the retail tranche from 10% to 30% of the total
• The Herbert Smith team recently advised on $US21.9bn IPO of ICBC; one the largest ever IPOs
| CHINA/US |
MOTOROLA INC ASSET ACQUISITION ►Motorola diversifi es its interests on the mainland
Firm: Paul Weiss Rifkind Wharton & GarrisonLead lawyer: Jeanette ChanClient: Acquirer on international law
Firm: Jun He Client: Acquirer on PRC law
Firm: AllBrightClient: Target on PRC Law
• Motorola acquired the assets related to digital cable set-top products of Zhejiang Dahua Digital Technology Co, Ltd and Hangzhou Image Silicon (collectively, Dahua Digital)
• Dahua Digital is a privately held developer, manufacturer and marketer of cable set-tops and related low-cost integrated circuits for the emerging Chinese cable business
| CHINA/AUSTRALIA |
SINOSTEEL BID FOR MIDWEST ►Value: A$1.2bn
Firm: DeaconsLead lawyers: Ian McCubbin, Shaun McRobert, James StewartClient: Sinosteel
Firm: Hardy BowenLead lawyer: Michael BowenClient: Midwest
The fi rst hostile takeover bid by a Chinese fi rm for an Australian company
• SOE Sinosteel Corporation is the largest iron ore trading company in China
• Sinosteel ignored a call by its target on 19 March to raise the A$5.60-a-share bid to at least A$7 a share, valuing Midwest at A$1.49bn
• Midwest said the current offer undervalued the strategic and intrinsic value of its fi ve projects in Western Australia
| CHINA/HONG KONG |
HONGHUA GROUP LISTING ►U$S410m
World’s second largest onshore oil rig manufacturer H-lists
Firm: Arculli Fong & Ng Client: Issuer on HK law
Firm: Latham & Watkins Client: Issuer on US law
Firm: King & WoodClient: Issuer on PRC law
Firm: ApplebyLead lawyers: Li Lee Tan, Frances WooClient: Issuer on Cayman law
Firm: Herbert Smith Lead lawyers: Gary Lock, Kevin RoyClient: Underwriters on HK & US law
Shaun McRobert, Deacons
James Stewart, Deacons
Frances Woo, Appleby
Kevin Roy,Herbert Smith
XINYUAN REAL ESTATE IPO & NYSE LISTING ►US$282m
The fi rst China property developer to be listed on the NYSE
Firm: Baker & McKenzie Lead lawyers: Scott Clemens, Omer OzdenClient: Issuer on US law
Firm: Shearman & SterlingClient: Underwriters on US law
Firm: TransAsia LawyersClient: Issuer on PRC law
Firm: King & WoodClient: Issuer on PRC law
Firm: Maples & CalderLead lawyers: Richard Thorp, Alice OoiClient: Issuer on Cayman Island law
• Listing makes Xinyuan the fi rst China property developer to be listed in the US; introducing China’s fast-growth property sector directly to US investors for the fi rst time
• Deal involved complex negotiations with pre-IPO private equity investors, Blue Ridge China and Equity International, and signifi cant debt fi nancing
MINDRAY MEDICAL ACQUISITION OF ►DATASCOPE US$202m
Firm: O’Melveny & MyersLead lawyers: Gregory Puff, Victor Chen, Larry Sussman, Pete Ritter, Ted KassingerClient: Mindray on US, PRC law
Firm: DechertLead lawyers: Adam Fox, Martin NussbaumClient: Datascope on US, PRC law
• Transaction will create, upon completion, the third-largest player in the global patient monitoring device industry
• Transaction represents a unique combination of strengths that will help transform Mindray from a largely China-based company into a global leader
| CHINA/SINGAPORE |
CHINA HUANENG GROUP ACQUISITION OF ►TUAS POWERUS$3.1bn
Largest ever overseas acquisition by a Chinese power company
Firm: Shook Lin & BokLead lawyers: Phillip Pillai, David Chong, Michelle PhangClient: Acquirer on Singapore law
Firm: Clifford ChanceLead lawyer: Ting Ting TanClient: Financier (BOC) on Hong Kong law
Firm: Sullivan & Cromwell
Scott Clemens, Baker & McKenzie
Gregory Puff, O’Melveny &
Myers
>> NEWS
11
www.asianlegalonline.com
YOUR MONTH AT A GLANCEFirm Jurisdiction Deal name US$m PracticeAllBright China, US Motorola Inc Asset Acquisition Undiscl. M&AAllen & Gledhill China, Singapore Evraz Group acquisition in Delong Holdings 770 M&AAllen & Overy Belgium, China PingAn acquisition of interest in Fortis
Investment Management 3,350 Private
equity, M&AHong Kong Airport Authority of Hong Kong Franchise to
Cathay Pacifi c ServicesEst. 618 Building &
constructionAllens Arthur Robinson
China Fresenius Kabi (China) acquisition of COSCO Pharm
Undiscl. M&A
Appleby China, Hong Kong, US Honghua Group IPO 410 Equity Hong Kong Asia International Standard Group rights issue 84 Equity
Arculli Fong & Ng China, Hong Kong, US Honghua Group IPO 410 Equity Baker & McKenzie China, Hong Kong, US China Railway Construction Corporation IPO 5,400 Equity
China, US Xinyuan Real Estate IPO and NYSE Listing 282 EquityBeijing Deheng China, Hong Kong, US China Railway Construction Corporation IPO 5,400 Equity
China, Hong Kong Fujian Casstech Crystals IPO 53 EquityCastillo Laman Hong Kong, Philippines,
UKInternational Finance Corporation & Asian Development Bank fi nancing
1,100 Project fi nance
Chui & Partners China, Hong Kong, Singapore
Xingfa IPO Est. 58 Equity
China, Singapore Li Heng Chemical Fibre Technologies IPO Est. 232 EquityClifford Chance Hong Kong,, Japan Permira Acquisition of Arysta LifeScience Corp 2,002 M&A
China, Singapore China Huaneng Group Acquisition of Tuas Power
3,000 M&A
Commerce & Finance
China, Hong Kong, US Honghua Group IPO 410 Equity China, Hong Kong, US, Evergrande IPO 2,100* Equity
Conyers Dill & Pearman
China, Hong Kong, Singapore
Xingfa IPO Est. 58 Equity
China, Hong Kong, US Solargiga IPO Est. 127 Equity China, Singapore Li Heng Chemical Fibre Technologies IPO Est. 232 Equity
Davis Polk & Wardwell
China China Investment Corporation Investment in Morgan Stanley
5,000 FDI, M&A
Deacons China, Hong Kong, US Wingfat IPO Est. 12* Equity Australia, China Sinsosteel bid for Midwest Est. 1,200 M&AAustralia, Hong Kong, China
Sino Gold acquisition of Golden China Resources Corporation
97 M&A
Dechert China, US Mindray takeover of Datascope 202 M&ADorsey & Whitney China, Hong Kong, US Solargiga IPO Est. 127 Equity
China, Hong Kong, US Wingfat IPO Est. 12* Equity Australia, Hong Kong, China
Sino Gold acquisition of Golden China Resources Corporation
97 M&A
Freshfi elds Hong Kong, Japan Permira Acquisition of Arysta LifeScience Corp 2,002 M&AFreshfi elds Bruckhaus Deringer
China, Hong Kong, US China Railway Construction Corporation IPO 5,400 Equity China, Hong Kong, US Evergrande IPO 2,100* Equity China, Hong Kong, US Want Want IPO 1,048 Equity
Garrigues China, Spain Fersa Energias Renovables investment in & JV with Lubei Group Corporation
95 M&A, Energy & resources
Graubard Miller China, US North Asia Investments IPO & NYSE listing Est. 115 EquityGuangdong Guangda
China, Hong Kong, Singapore
Xingfa IPO Est. 58 Equity
Haiwen & Partners China, Singapore China Huaneng Group Acquisition of Tuas Power
3,000 M&A
Hardy Bowen Australia, China Sinosteel bid for Midwest Est. 1,200 M&AHeller Ehrman China Yuhe Poultry reverse takeover & private capital
raising21 Equity, M&A
Herbert Smith China, Hong Kong Honghua Group IPO 410 EquityJingtian & Gongcheng
China, Hong Kong, Singapore
Xingfa IPO Est. 58 Equity
China, Hong Kong, US Solargiga IPO Est. 127 EquityChina, Hong Kong, US China Railway Construction Corporation IPO 5,400 EquityChina, Hong Kong, US Want Want IPO 1,048 EquityChina, Singapore Li Heng Chemical Fibre Technologies IPO Est. 232 Equity
Jun He China, US Motorola Inc. Asset Acquisition Undiscl. M&AChina, Hong Kong, US Want Want IPO 1048 EquityChina, US North Asia Investments IPO & NYSE listing Est. 115 Equity
Kim & Chang China, US North Asia Investments IPO & NYSE listing Est. 115 EquityKing & Wood China, Hong Kong Honghua Group IPO 410 Equity
China, Hong Kong, US, Evergrande IPO 2,100* EquityChina, US Xinyuan Real Estate IPO and NYSE Listing 282 Equity
Kirkpatrick & Lockhart Preston Gates & Ellis
China, Hong Kong, Singapore
Xingfa IPO Est. 58 Equity
Latham & Watkins China, Hong Kong Honghua Group IPO 410 EquityLee & Li China, Hong Kong, US Solargiga IPO Est. 127 Equity
China, Hong Kong, US Want Want IPO 1,048 EquityLinklaters China, Singapore Evraz Group acquisition in Delong Holdings 770 M&AMallesons Stephen Jaques
Hong Kong, Philippines, UK
International Finance Corporation & Asian Development Bank fi nancing
1,100 Project fi nance
Maples & Calder Hong Kong IFIL Group investment in Vision Investment Management Limited
90 M&A
China, US Xinyuan Real Estate IPO and NYSE Listing 282 EquityHong Kong, UK Asia Alternative Asset Partners (Caymans) Ltd
First closing200 Equity
China, Hong Kong, US Want Want IPO 1,048 EquityChina, Hong Kong, US, Evergrande IPO 2,100* EquityChina, US North Asia Investments IPO & NYSE listing Est. 115 Equity
Mayer Brown JSM China Shui On Land Land use rights 1,060 Real estateMorrison & Foerster
China, Hong Kong, US Solargiga IPO Est. 127 Equity
Lead lawyer: Wei ChunClient: Acquirer on International law
Firm: Haiwen & PartnersClient: Acquirer on PRC law
• Temasek, owner of Tuas Power, has made no secret of its desire to divest all of its wholly-owned power generation assets in Sinagpore; this deal is the fi rst big move in this direction
• Temasek announced China Huaneng Group as the successful bidder in a press release on 14 March 2008
• Huaneng also owns a 50% stake in the Australian power generation joint venture company, OzGen, and is also the controlling shareholder of Huaneng Power International, Inc, which is listed on the New York, Hong Kong, and Shanghai stock exchanges
| CHINA/HONG KONG |
WANT WANT IPO ►US$1.05bn
Second largest offering of 2008 to date
Firm: Freshfi elds Bruckhaus DeringerLead lawyers: Kay Ian Ng, Stuart Grider, Claude Stansbury, Bruce CooperClient: Issuer on HK, US law
Firm: O’Melveny & Myers Lead lawyers: Colin Law, Peter Chen, Kurt BerneyClient: Underwriters on HK, US law
Firm: Maples & CalderLead lawyer: Greg KnowlesClient: Issuer on Cayman Islands law
Firm: Lee and LiLead lawyer: Joyce FanClient: Issuer on ROC law
Firm: Jun HeLead lawyer: Shi TiejunClient: Issuer on PRC law
Firm: Jingtian & GongchengClient: Underwriters on PRC law
• Want Want is a leading food and beverage manufacturer in China, well known for its rice crackers and other snack food products
• Prior to HK listing, Want Want was listed on the Singapore Stock Exchange for some 10 years before being delisted and taken private by its chairman in September 2007
• Company is offering 2.7 billion shares at HK$3 each. The shares sold represent 20.5% of the company's enlarged share capital
• Prior to the global offering, the company underwent a restructuring to spin-off certain non-core businesses, and focus on its core food and beverage businesses
• As part of the deal, Want Want and its controlling shareholder repaid and discharged fi nancing arrangements incurred in connection with privatisation
• Freshfi elds is the only fi rm to have worked on both of the Hong Kong IPOs in the billion-dollar category for the fi rst quarter of 2008
Shi Tiejun, Jun He
NEWS >>
12
ISSUE 5.4
ANALYSIS
As the sub-prime mortgage crisis sends the US economy sliding into recession,
Asia’s capital markets have experienced a series of withdrawn deals early in the year, indicating the resilience of the region’s markets may not last indefi nitely.
Asia had recorded US$17.9bn worth of withdrawn M&A deals at the time ALB China went to press. This was half the size of the completed M&A deals in the region (US$36.3bn). Withdrawn IPO volumes totalled US$14.3bn from 14 deals – larger than those launched so far this year in the region, according to Thomson Financial. Asia (ex-Japan) IPO volumes totalled US$11.7bn from 66 deals. A number of IPO deals from India accounted for the majority of withdrawn issuances, as the Mumbai market suffered. These were BSNL, Emmar-MGF, DLF Offi ce Trust and Unitech Offi ce Trust.
Withdrawn deals signal hard times aheadThe capital markets
teams of law fi rms in the region, that have been stretched thin during the market boom, may be set for some quieter times in 2008. While lawyers are often entirely in the client’s hands in terms of ensur-ing these deals go to market, and can only ensure clients are ready for listing, deals being pulled will hurt law fi rm profi ts.
“It really varies from deal to deal, and depends on the relationship and what’s been negotiated with a client,” Barron said. “It’s fair to say, though, that it’s diffi cult to get paid a good fee if the deal doesn’t end up going ahead.”
Barron said he has not noticed the credit crunch effect on the pipeline of M&A deals in the region. “On the M&A side, you’re continuing to see a lot of activity; from our perspective, that hasn’t been affected at all,” he said. “This is because most of the M&A deals out here aren’t as dependent on leverage as much as in the US, for example, so they’re continuing to go ahead.” Davis Polk has a string of M&A deals lined up, and is currently representing Linktone, a Nasdaq-listed company with operations in the PRC, in connection with its acquisition by Media Nusantra Citra, an Indonesian company. Davis Polk’s Jeffrey Small also represented Morgan Stanley in connec-tion with China Investment Corporation’s US$5bn investment in the bank.
As for the future of capital markets deals, Barron is philosophical. “I’ve been here 15 years and three or four market cycles, and the markets get turbulent at times.” Taking a long-term view, Barron said the sub-prime-induced situation so far in Asia has not been as bad as after the Asian fi nancial crisis, the .com bust or the SARS scare.
“Eventually, it will be likely to have a more signifi cant effect out here than it’s had up until now. It’s been encouraging how strong it’s been out here given what’s happening in the US, but sooner or later it will have an effect,” Barron said.
Expect lawyers to become a lot more ag-gressive in their approach to sourcing deals if and when the market takes a dive. ALB
William Barron, Davis Polk & Wardwell
WITHDRAWN IPO s 2008Asia-Pacifi c (ex Japan) cancelled/postponed IPOs Asia-Pacifi c (ex Japan) IPO volumes
Issue date totals Proceeds (US$m) Number of issues Issue date totals Proceeds (US$m) Number of issues
Full year 2006 10,921 48 Full year 2006 85,184 515
Full year 2007 5,787 24 Full year 2007 92,809 636
So far 2008 14,637 14 So far 2008 11,656 66
Source: Thomson Financial
The IPO trend followed on from last year’s tentative approach to Asian mar-kets, which resulted in 22 IPO deals in Asia-Pacifi c (ex-Japan) being cancelled or postponed, with an estimated combined value of US$5.8bn. Seventeen of these equity deals were pulled in the second half of last year as the credit crisis started to take effect in the region.
William Barron, partner with Davis Polk & Wardwell, said he has noticed the growing capital markets trend, par-ticularly on the debt side. “Beginning last July or August, when the sub-prime prob-lem started to develop, a lot of deals were pulled or put on hold due to diffi cult market conditions, mainly debt deals,” Barron said. “In fact, some of them went right through roadshows and didn’t go ahead. Some eq-uity deals were also pulled from the market after getting quite far along.”
The US sub-prime crisis is having a diverse range of global effects. In Asia, it is loss of profi t through the withdrawal of deals
>> NEWS
13
www.asianlegalonline.com
| CHINA/SINGAPORE |
LI HENG IPO ►US$230m
Firm: Rajah & TannLead lawyers: Wong Kok Hoe, Howard CheamClient: Issuer on Singapore law
Firm: Jingtian & GongchengClient: Issuer on PRC law
Firm: Chiu & PartnersClient: Issuer on HK law
Firm: Conyers Dill & PearmanClient: Issuer on Bermudan law
Firm: Wee Woon & HongClient: Underwriters on Singapore, PRC law
• Deal saw listing of Li Heng on the Main Board of the Singapore Securities Exchange Trading Limited and its initial public offering (“IPO”) in Singapore
• IPO was made by way of an invitation in respect of 400 million ordinary shares of Li Heng at S$0.10 each, comprising 340 million New Shares and 60 million Vendor Shares by way of public offer and placement of 10 million Offer Shares at S$0.80 and 390 million Placement Shares at $0.80 respectively
| CHINA/BELGIUM |
PING AN – FORTIS INVESTMENTS ►ACQUISITION & JVUS$3.35bn
Firm: Allen & OveryLead lawyers: Gary McLean, Alistair AsherClient: Target, JV Partner on PRC, Belgian law
Firm: White & CaseLead lawyers: Seung Chong, Stefan OdeursClient: Acquirer, JV Partner on PRC, Belgian law
• Deal will create a global asset management partnership between Fortis and Ping An Insurance (Group) Company of China Ltd
• Ping An intends to acquire a 50% equity stake in Fortis Investments, the global asset management arm of Fortis, for a consideration of €2.15bn
• Partnership will signifi cantly advance Ping An’s strategy to establish a global asset management business and a Qualifi ed Domestic Institutional Investor (“QDII”) platform while Fortis will signifi cantly accelerate the development of its business in both China and Asia-Pacifi c
• According to the Memorandum of Understanding, Fortis Investments would be re-branded “Fortis Ping An Investments”
Seung Chong, White & Case
YOUR MONTH AT A GLANCE (CONT)Firm Jurisdiction Deal name US$m PracticeO'Melveny & Myers China, US Mindray takeover of Datascope 202 M&A
China, Hong Kong, US Want Want IPO 1,048 EquityOrrick Herrington & Sutcliffe
Hong Kong IFIL Group investment in Vision Investment Management Limited
90 M&A
China, Egypt COSCO Pacifi c Ltd purchase of stake in Suez Canal
750 M&A
Paul Hastings Janofsky & Walker
China, Hong Kong, US Wingfat IPO Est. 12* EquityChina YIHE Real Estate Holdings Ltd CB issue 100 Debt market
Paul Weiss Rifkind Wharton & Garrison
China, US Motorola Inc. Asset Acquisition Undiscl. M&AHong Kong IFIL Group investment in Vision Investment
Management Limited90 M&A
Rajah & Tann China, Hong Kong, Singapore
Xingfa IPO Est. 58 Equity
China, Singapore Li Heng Chemical Fibre Technologies IPO Est. 232 EquityRichards Butler China, Hong Kong, US Solargiga IPO Est. 127 EquityShearman & Sterling
China, US Xinyuan Real Estate IPO and NYSE Listing 282 Equity
Shin & Kim China, US North Asia Investments IPO & NYSE listing Est. 115 EquityShook Lin & Bok China, Singapore China Huaneng Group Acquisition of Tuas
Power3000 M&A
Sidley Austin China, Hong Kong, US Solargiga IPO Est. 127 EquityChina, Hong Kong, US, Evergrande IPO 2,100* Equity
Slaughter and May China, Hong Kong, Japan CRE Beverage Trading Limited dual currency loan facility
232 Debt market
Stephenson Harwood & Lo
Hong Kong Asia International Standard Group rights issue 84 EquityHong Kong, Singapore Vitasoy acquisition of Unicurd Food 50 M&A
Stikeman Elliot Australia, Hong Kong, China
Sino Gold acquisition of Golden China Resources Corporation
97 M&A
Sullivan & Cromwell
China Goldman Sachs Developing Markets Real estate funds bond acquisition
100 Equity
China China Investment Corporation Investment in Morgan Stanley
5000 FDI, M&A
China YIHE Real Estate Holdings Ltd CB issue 100 Debt marketChina, Singapore China Huaneng Group Acquisition of Tuas
Power3,000 M&A
SyCip Salazar Hernandez & Gatmaitan
Hong Kong, UK International Finance Corporation & Asian Development Bank fi nancing
1,100 Project fi nance
TransAsia Lawyers China, US Xinyuan Real Estate IPO and NYSE Listing 282 EquityTaylor Wessing China, France China Corn Oil NYSE Euronext Listing 133 EquityWatson Farley & Williams
China, Pan Asia Sinochem International Corporation acquisition from Monsanto Corporation
Undiscl. M&A
Wee Woo Hong China, Singapore Li Heng Chemical Fibre Technologies IPO Est. 232 EquityWhite & Case Belgium, China PingAn acquisition of interest in Fortis
Investment Management 3,350 Private
equity, M&AWithers Hong Kong, UK International SOS & Control Risks Group JV n/a M&AWong Partnership China, Singapore Evraz Group acquisition in Delong Holdings 770 M&AWoo Kwan Lee & Lo
China, Hong Kong, US Wingfat IPO Est. 12* Equity
Yuan Tai China, Hong Kong Wingfat IPO Est. 12* EquityZong Heng China, Hong Kong , US Solargiga IPO Est. 127 Equity* IPO has been withdrawn
REST OF ASIAFirm Jurisdiction Deal name US$m PracticeAllen & Overy Philippines Republic of Philippines issuance of Debt
Exchange Warrants2,000 Debt market
Bae Kim & Lee Korea Halla Consortium share purchase 763 M&ABonelli Erede Pappalardo
Italy, Singapore, UK, US GIC Investment in Sintonia SA 1,500 Equity
Cleary Gottlieb Philippines Republic of Philippines issuance of Debt Exchange Warrants
2,000 Debt market
Elvinger Hoss & Prussen
Italy, Singapore, UK, US GIC Investment in Sintonia SA 1,500 Equity
Linklaters China, Singapore Evraz Group acquisition in Delong Holdings 770 M&ALovells Italy, Singapore, UK, US GIC Investment in Sintonia SA 1,500 EquityLoyens & Loeff Italy, Singapore, UK, US GIC Investment in Sintonia SA 1,500 EquityMallesons Stephen Jaques
Hong Kong, Philippines, UK
International Finance Corporation & Asian Development Bank fi nancing
1,100 Project fi nance
Singapore, Malaysia Cathay Pacifi c Airways & Dragonair global carbon offset initiative
n/a Project advice
Maples & Calder Cayman Islands, Hong Kong, United Kingdom
Asia Alternative Asset Partners (Caymans) Ltd First closing
200 Equity
Nagashima Ohno Tsunematsu
Japan, United States TPG Investment in and JV with NIS group 288 M&A
Simmons & Simmons
Qatar Ras Abu Fontas A1 desalination project 650 Project fi nance
Sullivan & Cromwell
Italy, Singapore, UK, US GIC Investment in Sintonia SA 1,500 Equity
SyCip Salazar Hernandez & Gatmaitan
Hong Kong, Philippines, United Kingdom
International Finance Corporation & Asian Development Bank fi nancing
1,100 Project fi nance
Philippines Republic of Philippines issuance of Debt Exchange Warrants
2,000 Debt market
Does your fi rm’s deal information appear in this table?Please contact Renu Prasad [email protected] 61 2 8437 4763
Wong Kok Hoe, Rajah & Tann
FIRM
PRO
FILE
14
FIRM PROFILE ISSUE 5.4
With more than 120 legal practitioners, 35 of whom are partners, Tian Yuan Law Firm services an impressive array
of leading domestic and international corporations, state-owned enterprises and government departments. Headquartered in the heart of Beijing’s Financial Street, the fi rm is enjoying a growing reputation in all commercial areas.
What have set Tian Yuan apart for over 16 years and become a model for the modern practice of law in China is Tian Yuan’s priority on people, culture and organic growth. The fi rm prides itself on this, and has been named “employer of choice in China” in ALB’s recent survey of over 15,000 lawyers across 13 Asian jurisdictions. Tian Yuan’s approach has proven to be successful and reinforces its
Tian Yuan: where aspirations meet opportunities leading position in the marketplace.
“We believe our stable team of fi rst-class lawyers has fundamentally contributed to Tian Yuan’s consistent highest quality legal advice and representation to clients. Towards attracting and keeping stay the very best talents, we provide best training and accessible resources, and avail the senior associates clear path to the partnership.”
The fi rm creates an environment in which opportunities serve the aspirations of well-qualifi ed and motivated lawyers. Its real investment in people has won the loyalty of its associates and partners, enabled the creation of long-term working relationships with clients and brought more mandates from clients.
“The strong centripetal force in the fi rm ensures that we have a unifi ed culture, and a high consistency of service and quality,” says Liu. “This is what’s driving the fi rm’s fast growth, and our clients
benefi t greatly from it.”While the fi rm grows alongside the
toughest of competitors in Beijing and Shanghai, it is set apart by its people focus, the accessibility of its partners and its client service standards.
Stellar performance in 2007The fi rm’s corporate advisory team has excelled itself over the years by commanding an increased share of instructions from leading state-owned and private enterprises, including clients such as Chinalco, China Yangtze Power, China Minmetals, Ansteel Group, Beijing State-owned Assets Management, Sinochem Corp, China Resources Group, , Lenovo, Haier, Beijing Capital International Airport Company, and New Oriental Education & Technology Group. etc.
“Many of the transactions we acted on have been the fi rst of their kinds. As there were no precedents, clients have required
“The strong centripetal force in the fi rm ensures that we have a unifi ed culture, and a high consistency of service and quality”
al force m ensures have a ulture, and nsistency e and
事务所对人才进行的实实在在的投入赢得了同合 的忠 作的
务过的客户包括中国铝业、中国长江电力、中鞍 有 产 有
FIR
M P
RO
FILE
15
FIRM PROFILEwww.asianlegalonline.com
天元:以人为本,以质为先us to be innovative and have an excellent grasp of the structures, the rules and regulatory aspects,” says Liu. “We met these requirements with our competitive edge - our in-depth understanding of the law and practice and our prudent yet constructive professionalism.”
In keeping with its prominent standing in the corporate and fi nancial sectors, Tian Yuan has established itself as a respected player in litigation and dispute resolution. The litigation team is headed by partner Li Qi, and has been involved in many large and complicated court cases. In particular, clients and peers draw attention to the team’s strength in intellectual property protection practice.
A growing familyIn a very tight legal talent market, the fi rm has managed to keep ahead of its competition by using its enviable working culture to attract new partners and best law school graduates, while a substantial
number of internal promotions have strengthened its partnership traditions.
Two of the eight new partners were appointed for the fi rm’s newly upgraded Shanghai offi ce located in the Bank of China Tower. Zeng Xi joined Tian Yuan Shanghai from Zhonglun , and Wang Bangmin, former Assistant General Counsel of American Standard Companies in Asia Pacifi cseniorBASF, gave up his in-house career to practise with Tian Yuan. The new hires are set to sustain the fi rm’s remarkable growth of corporate and foreign investment practice in Shanghai.
The infl ux of new lawyers and partners has expanded the diversity of the practice and experience . This has been mirrored in the fi rm’s client activity by its winning of the role of adviser to Minmetals Development’s US$242m project in Brazil and to the logistics services for the Airbus A320 fi nal assembly line project in Tianjin.
International trade specialist Chai Jie was promoted to the partnership last year.
Prior to joining Tian Yuan in 2001, he had served as the general counsel in China Metallurgical Group. He is the principal partner for both projects. The fi rm expects Chai’s appointment to give a further boost to its international trade practice.
“Given the policies encouraging domestic companies and fi nancial institutions to invest abroad, there is an increasing amount of opportunities for domestic fi rms to take part in outbound investment. Tian Yuan will continue to increase its visibility through advising on overseas projects,” says Chai.
The fi rm expects strong performance throughout 2008. In January, the fi rm expanded the offi ce space for its Beijing headquarters. This additional space will be put to very good use in coming years, as the fi rm continues to attract new talent and clients at local, national and international levels.
Money does not necessarily buy job satisfaction, but if a fi rm pays below market rate, chances are they will soon see lawyers voting with their feet. ALB China looks at salary trends across key Asian markets
What am I worth? This is the question every lawyer asks when reassessing
their job. In a market where ‘growth’ and ‘boom’ are the buzz words, it is easy to get the impression that lawyer salaries are sky-rocketing. But what is actually hap-pening out there?
Generally the trend in Hong Kong has been one of steady rises across the board, said Florence Pang, a senior consultant with Hudson Recruitment. Pang said that for international fi rms, the average rise in 2007 would have been over 10%.
2007 saw some dramatic salary hikes too, but Pang noted that these tended to occur in specifi c areas of specialisation, with corporate fi nance and capital mar-kets expertise most in demand. “In those markets, I’ve seen increases of over 30%, although I would say the norm is about 15%,” said Pang.
The market in China is similarly strong, with fi rms upping the ante to attract the right talent. One salary survey estimated salary growth in top tier domestic fi rms to be as high as 19% – thereby narrowing the gap with international fi rms.
ing to increase salaries by between 10% and 20%,” said Su.
In-houseThe demand for in-house counsel has been a source of competition for law fi rms in recent years. “We regularly get calls from recruiters trying to fi ll in-house corporate roles,” said Irene Yang, part-ner at Guangzhou-based Guangda Law Firm. Yang said recruiters are seek-ing to fi ll roles in Shanghai, Hong Kongand Singapore.
However, lawyers who make the transi-tion to in-house teams are not necessarily copping the pay cut that has accompanied such a move in the past. “Increasingly, companies are able to attract lawyers to in-house teams with salaries comparable to those on offer in law fi rms,” said Pang. “In-house roles are always attractive to lawyers because of the work-life balance and the chance to get away from the bill-angs pressure of a big fi rm.” The oppor-in
tunity to earn a large bonus is a major tfactor too. “For lawyers going in-house with an investment bank, the bonus will often more than compensate for any loss in base salary,” said Pang.
Closing the gapIn the Australian market, the demand for senior associates has resulted in a nar-rowing of the salary gap between them-selves and salaried partners, but this trend has not appeared among fi rms in Hong Kong.
“There hasn’t really been any signifi -cant narrowing of the salary gap between senior associates and salaried partners,” said one industry source. “That’s one of the reasons why senior associates are at-tracted to the in-house market, because corporates and banks can take advantage of that gap to attract talent.” The source said that the uncertainty surrounding when, and indeed, if, a senior associate might attain partnership, adds to the at-traction of moving in-house.
Pang agreed: “Certainly the gap hasn’t narrowed signifi cantly.” Pang noted that the lawyers who are particularly in de-mand are not necessarily senior associ-ates, but lawyers in the 3–5 QPE brack-et. “Lawyers in that range are relatively mature technically and their salary ex-pectation is more manageable.”
SingaporeIn Singapore, some – but not all – of these trends are apparent. “There hasn’t been a stellar increase in salary levels, but certainly fi rms have been willing to pay
Following the moneywi ey
“Certainly there is an upward pressure on salaries,” said Scott Guan, co-man-aging partner of J&F PRC Lawyers. “We’ve increased associate compensation signifi cantly since mid last year, and in addition we’ve adopted an incentive plan so that associates with quality perfor-mance will get a good bonus, which can be up to 8–10 months’ salary.” Guan said that the incentive scheme, together with a clear partnership track, has been a very successful part of the fi rm’s recruitment and retention strategy.
Brain drainThese salary trends have implications right across Asia too as younger lawyers relocate to cities where more lucrative re-muneration is on offer. Malaysia is one key example. “We’re defi nitely experiencing a brain drain,” said Siew Ling Su, partner at Kuala Lumpur-based fi rm Tay & Part-ners. “The general sentiment among law fi rms is that there are fewer good candi-dates to choose from.” And as the law of supply and demand dictates, salary rises necessarily follow. “Some fi rms are hav-
大部分澳大利亚律所也存在律师流失国外的问题,造成其律师总数有所减少。安德慎律师事务所(Allens Arthur Robinson)的人力与业绩总监Susan Ferrier表示,目前的一个特别趋势是,拥有两至五年经验的律师倾向于到国外工作。从传统上来讲,纽约和伦敦较受澳大利亚律师的青睐,但利润日渐丰厚的亚洲市场的诱惑力也在不断增强。
more for the right person,” said Jeremy Small, director of Law Alliance Re-cruitment Singapore. Small estimates that the average salary increase last year would have been about 10–15%, al-beit with a great deal of fl uctuation from fi rm to fi rm.
Small said there is an overlap between a senior associate salary and salaried partners in some fi rms, although not in Magic Circle or US fi rms. However, he said this can be explained by historical and local factors. “In a lot of fi rms you’ll see quite a conservative level of partner-ship, with senior associates who have been there up to 15 years but are unable to make partner. It’s a particular issue for New York law fi rms, who make very few partners outside of New York.”
The result, said Small, is senior associ-ates being paid at the very top end of the scale. “I’ve even seen some instances of senior associates taking a pay cut when they attain partnership.”
Small also attributes the smaller gap between senior associate and salaried partner to the opportunities on offer in Singapore. “Compared to the Hong Kong market, there are less opportunities for frustrated senior associates to go else-where. Singapore is a growing market with some opportunities to go in-house, but not necessarily at the same salary levels to which international lawyers would be accustomed.”
Future trendsThere are mixed signals for salary trends in the future. A report by recruitment fi rm Michael Page predicts more of the same, with private practice salaries in Hong Kong to rise between 7–11% over the year in top-tier fi rms, with rises of up to 20% for in-demand skill sets. The report also forecast that in-house salaries would also be on the move, with 8–15% rises over the next 12 months.
However, Pang is more cautious inher predictions. “Law fi rm business is driven mainly by fi nancial activity. My prediction is that salaries over the next year will stabilise somewhat because of the uncertainty created by the US sub-prime crisis. A lot of people are wait-ing to see what the real picture will be,”she said.
A lot of fi rms are echoing this cautious approach, although no-one can afford to fall out of step with salary trends just yet. “Our pipeline [of work] is still pretty good,” said Ferrier. “We’re not changing tack yet, but we’re certainly keeping a close eye on the situation.” ALB
INTERNATIONAL FIRMS: SALARY INDICATIONS HONG KONG SINGAPORE SHANGHAI
BEIJINGZhonglun W & D merges with Li HeZhonglun W & D, one of ALB China’s Fast 10 fi rms in 2007,
is likely to continue its expansion rate throughout 2008. The fi rm has expanded its business spectrum as well as its size by merging with Beijing local fi rm Li He. Prior to the merger, Li He had 12 qualifi ed lawyers and was headed by managing partner Chen Wen. The entire Li He team will be integrated into Zhonglun W & D’s Beijing offi ce, and the new fi rm’s name will remain Zhonglun W & D.
Zhonglun W & D is highly regarded in the areas of corporate, fi nance and real estate, while Li He practices are mainly focused on infrastructure, fi nance, and energy & resources. The merger serves Zhonglun W & D’s development strategy to be a large full-service national fi rm with specialised practice groups. ALB
BEIJING Lawyers form special legal team for Beijing Olympics
With less than 150 days until the open-
ing ceremony of the Bei-jing 2008 Olympic Games, 25 permanent lawyers in Beijing have formed a mo-bile legal service team to support the games. The team will serve as special counsels to various gov-ernment bodies for urgent legal matters during the international games.
Many among the 25 law-yers are heads of vari-ous practice groups of the Beijing Bar Association, specialising in practice ar-eas such as civil law, crim-inal law, administration law, contract law and IP law. Some are fluent in English, German, Korean and Japanese.
Vice president of the Beijing Bar Association, Gong Sha, was appointed as the head of the team, while Zhang Xuebing, manag-ing partner of Zhonglun, was appointed the co-head.
During the games, all members of the team must give priority to Olympics-related matters and are not allowed to leave Beijing at any time. ALB
The Chancellor of the Exchequer Alistair Darling made his fi rst Budget speech on 12th March 2008, which included many predicted changes to the rules on UK tax residence, and, more extensively, on the taxation of non UK
domiciled individuals who are not ordinarily resident in the UK.
NON UK RESIDENCEDay Counting Rule - Currently days of arrival and departure from the UK are not counted towards the number of days a person spends in the UK to determine UK tax residency. The Government had proposed to change this so that days of departure and arrival both count. In the end they compromised and decided that, from 6th April 2008, any day an individual spends in the UK at midnight will be counted.
NON UK DOMICILEThe Remittance Basis - Non UK domiciled individuals living in the UK have been treated very generously in the past such that their worldwide (non UK) income and gains would only be taxed when remitted to the UK. From 6th April 2008, this has changed as follows:(a) Individuals can choose each year whether they wish to use to
the remittance basis.(b) Anyone choosing the remittance basis will no longer be eligible
to claim personal allowances (of £5,435 for 2008/09) or the annual exemption for capital gains (£9,600 for 2008/09).
(c) There is an annual charge of £30,000 for remittance basis users who have been resident in the UK for more than 7 out of the last 10 years. This charge will be creditable against foreign taxes and the Government have exempted children from being required to pay the charge. However, the payment of the £30,000 charge from offshore income or gains will itself be a remittance to the UK, and thus taxable unless directly paid to HM Revenue & Customs.
(d) Those with small offshore income and gains (less than £2,000 per year) will be exempt from the above changes.
Closing Remittance LoopholesThe Government has closed various loopholes previously exploited by remittance base taxpayers, such as:
The “ceased source” loophole. Previously if the source of income • ceased and the income subsequently remitted to the UK in later years, there was no tax. Now the income will be taxed.Previously income or gains made and converted to an asset that • was then imported to the UK was not taxed until the asset was sold. In future, such imports will be taxed. But there is exemption for all assets owned at 11th March 2008, and also a minor exemption for assets that are personal effects costing less than £1,000 each (clothes, jewellery, watches, etc).Previously if overseas income and gains were “alienated” – • transferred offshore to another person – and then remitted to the UK, this would avoid tax. In future, these will be taxed on remittance to the UK if the funds had been “alienated” to a close family relative.
Debbie Annells, Managing Director,AzureTax Ltd, Chartered Tax Advisers Suite 4708, The Center, 99 Queen’s Road, Central, Hong Kongwww.azuretax.com, a member of AzureTax Group(Tel) +852 2123 9339 (direct line), (Main Line) +852 2123 9370,(Fax) +852 2122 9209Registered with the Chartered Institute of Taxation for purposes of anti money laundering legislation.
Lynn Pan gave one of the opening talks at the Shanghai Literary Festival this year, an illustrated speech detailing Shanghai’s grand attempt to integrate Chinese design with modern graphic art during the 1920s and 30s. The city’s
early ambition and outward facing attitudes allowed its artists to blend cultural infl uences from China, Europe, the Americas and Japan into multiple visions of what Ms Pan calls “Shanghai Style”
The legacy of that style sense was challenged during mascot selection for the 2010 World Expo. The winner, called Hai Bao, cuts a simple profi le and sports a Tintin-esque tuft of hair on its head. Ignoring critics who claim it looks like a condom, the selection jury stated that Hai Bao personifi ed the character ‘人‘ren’ and the colour blue, as Shanghai is a coastal city. Yes, it’s cute, and yes, it sings. It’s not ‘Shanghai chic’ that is on display here, just ‘style’. But compared to the 2008 Olympic Fu Wa, who recently have permeated the airwaves and – in sickly sweet tones on late-night TV – admonished Chinese viewers to pick up their trash, speak quietly and line up politely, the Hai Bao is a modern construction. The mascot’s clean lines and confi dent stance represent a strong sense of optimism about Shanghai’s future.
For IP, mascots also bring good fortune. China is – through events like the Expo and the Olympics – realizing that mascots and symbols must be carefully protected.
Administrative offi cials have been ordered to clean up Olympic mascot counterfeits and unauthorized products on the market without waiting for the rights owner to request action. The message has gone out and all sellers in the markets know that unauthorized goods are forbidden. Even service applications are being checked: China’s tourism industry was warned against the illegal use of event logos and slogans.
As one of the top venues for civil litigation in China, Shanghai already has a good reputation in IP matters. Judges in the city’s courts hand down sophisticated and nuanced decisions that have rights owners cheering. And while counterfeits are still available, there tends to be less than in other areas of China, and offi cials tend to quickly resolve issues that are brought to them. Enforcement at trade fairs appears to be the big exception to this, but even in this area it is expected that Shanghai will toughen its standards soon. City offi cials have created a dialogue with rights owners that other areas should envy. Uncooperative attitudes in inland IP black holes and soaring market counterfeit rates have rights owners hoping that other provinces will develop their own sense of ‘Shanghai style’.
Miller Canfi eld looks to expand into ChinaUS-based law fi rm Miller Canfi eld has
followed up its previous expansions into Canada and Eastern Europe with the an-nouncement that it has fi led an application with the Ministry of Justice, requesting ap-proval to open a new representative offi ce in Shanghai.
The fi rm, which with over 350 lawyers is one of Michigan’s largest, envisages that the Shanghai offi ce would serve North American and European clients in a number of sec-tors including life sciences, automotive and non-auto manufacturing; and would expand the fi rm’s services in IP, environmental law, and corporate and securities including cross-border mergers, acquisitions, joint ventures and foreign direct investment.
Miller Canfi eld principal Thomas Appleman will lead the new offi ce. Appleman, who has 27 years’ experience in corporate and securities law, will be joined by life sciences attorney Weisun Rao, who specialises in patent law and IP transactions, and is a
SHANGHAI
The fi nancial hub of China has seen the estab-lishment of the country’s fi rst tax boutique
law fi rm – Shanghai Zuo Quan. The fi rm was founded by tax specialists Yan Xizhong, Lu Guoyang, Song Haijia and Zhong Feiying in August last year.
Yan Xizhong, the former managing partner of Shanghai fi rm Co-effort, and Lu Guoyang, the former head of the fi nance and taxation depart-ment at Co-effort, have brought the entire team
Legal Analysis of Issues in Relation to the Management of
Designated Accounts
On 29 November 2007, the CSRC promulgated the Experimental Measures on the Management of Designated Client Assets by Fund Management Companies (“Experimental Measures”) and the Notice
on the Implementation of the Experimental Measures, which stipulate that, from 1 January 2008, fund managers can conduct their asset management business for designated clients on a one-to-one basis, namely, the business of Wealth Management of Designated Accounts. The Wealth Management of Designated Accounts means activities of fund managers to raise capital for, or appointed as asset managers by specifi c clients. The Experimental Measures fail to provide for the legal modes for the Wealth Management of Designated Accounts. In our opinion, Wealth Management of Designated Accounts by fund managers may adopt following models:
“Co-trustee” mode - both the asset manager and custodian • act as trustees of the asset entrusting party under the legal relationship of trust. It is generally accepted that such a mode is adopted in the securities investment funds. Under this mode, the ownership of the entrusted property, namely whether the entrusted property is owned by the asset manager or custodian, may be unclear. “Trust Plus Entrustment” mode - the asset manager acts • as the trustee of the asset entrusting party under the legal relationship of trust and the assets custodian acts as the entrusted party, i.e. as a custodian, of the asset manager under the legal relationship of entrustment. The asset manager shall use the entrusted property to make securities investments in its own name for the benefi t of the asset entrusting party, and entrust the asset custodian with the custody service regarding the entrusted property. The “Trust Plus Entrustment” mode solves the problem of ambiguousness of the ownership of the entrusted property under the “Co-trustee” mode.“Bi-entrustment” mode. Under such mode, the asset • manager and asset custodian both act as the entrusted parties of the asset entrusting party under the legal relationship of entrustment. The asset manager conducts securities investment activities through the account of the asset entrusting party, who opens the capital account in its own name with the asset custodian and entrusts the asset custodian with the custody service regarding the entrusted property.
its doors in Shanghaiof the F & T department from Co-effort to Zuo Quan. Song Haijia and Zhong Feiying were previously partners with Shanghai Hua Xia & Partners.
Currently, there are four partners and a number of associates at Zuo Quan. Most of them are dual-qualifi ed as lawyer and cer-tifi ed public accountant (CPA). With their combined knowledge and skills in both fi nance and law, the fi rm provides ‘one-stop’ tax legal services in investment, M&A, restructuring and liquidation, tax planning and corporation fi nancing. The fi rm is looking to add tax expertise through lateral hires. ALB
Chinese national, fl uent in Mandarin and English.“Shanghai is China’s technology hub and its largest com-
mercial, fi nancial, industrial and communications centre,” said Michael Hartmann, CEO of Miller Canfi eld. “Opening an offi ce in China is a natural expansion of our international practice and for our growing work in the Asian Pacifi c rim.”
If approved, Miller Canfi eld expects to open the offi ce in the fourth quarter of 2008. ALB
Miller Canfi eld 的负责人Thomas Appleman将统领新代表处的工作,他拥有27年的公司和证券法经验。代表处另一名员工是中国籍律师Rao Weisun,他的专业特色主要集中在生命科学,专利法和知识产权交易方面。
“上海是中国的技术中心和中国最大的商业、金融、工业和运输中心,” Miller Canfi eld 的首席执行官Michael Hartmann 表示,“在中国开设办事处是本所国际业务扩展需求以及环亚太区业务量增加的必然结果。”
如获批准,Miller Canfi eld的新办事处预计将于2008年第四季度开业运营。
22
NEWS >> ISSUE 5.4
CHINA UPDATE
Reforms in the PRC Labor Dispute Mediation and
Arbitration Law
The new Labor Dispute Mediation and Arbitration Law of the PRC will take effect as of May 1, 2008 (“New Law”). The New Law streamlines the existing labor dispute regime and aims to lower costs and resolve labor disputes “fairly
and timely”. Major highlights are as follows:1. Initiating mediation and arbitration of labor disputes will be
free of charge.2. The New Law provides for mandatory mediation prior to an
arbitral award is given; and arbitration may be by-passed if the labor dispute concerns arrears in salaries, recovery of medical expenses for work-related injuries, severance payments or penalties under a mediation settlement agreement so that employees may apply to a court directly for payment orders if mediation has failed.
3. Employee’s grounds of appeal to labor arbitral awards are expanded. Employees may now appeal to a court for any adverse arbitral decision for disputes relating to non-payment of salaries, medical expenses for work-related injuries, severance and penalties regarding a disputed amount not exceeding 12-months of local minimum monthly wages, working hours, leave entitlement and social insurance contributions, in contrast with the limited circumstances under the Arbitration Law of the PRC that an employee may have recourse to.
4. Employers are placed with a greater evidential burden. Generally, the burden of proof rests on the asserting party; however, under the New Law, the arbitration tribunal has the power to order an employer to produce evidence in its control, and the employer shall bear the “unfavorable consequences” if it fails to do so.
5. Time limit to apply for arbitration is extended from 60 days to one year from the date when the party knows or should have known that his rights have been infringed. An exception to this rule is for disputes over arrears in remuneration, in which case the limitation period does not run until the relevant employment contract has been expired or terminated.
6. The time to settle labor disputes is signifi cantly shortened. Previously, a labor arbitration case must be concluded within 60 days from the date on which the case was fi led (and a possible extension to 90 days in exceptional cases). Under the New Law, an arbitration case should be concluded within 45 days from the date of the commission’s acceptance of the case, with a possible extension up to 15 days for complicated cases.
Desevedavy and Quach will join the fi rm’s Beijing team while Dubuis and Depierrefeu will be based in Shanghai. Desevedavy is also in charge of the Taiwan offi ce.
Lefébure is the partner in charge of the fi rm’s Asia Desk in Paris. ALB
Leading Spanish fi rm Cuatrecasas has taken a step towards opening its fi rst offi ce in China, applying for a licence to open
a representative offi ce in Shanghai.The fi rm expects the Ministry of Justice to award the licence
in July and plans to launch its offi ce in Shanghai by the end of the year.
“Each year there’s more investment from Spanish companies into China. We want to accompany our clients there,” said Emilio Cuatrecasas, the chairman of Cuatrecasas.
Once approved, Cuatrecasas will be the third Spanish law fi rm with a Shanghai representative offi ce, after Garrigues and Herrero-Advocats International. ALB
23
NEWS>>www.asianlegalonline.com
REGULATORY UPDATE
China’s Foreign Trade Agency System:
Commission or Brokerage?
In the course of drawing the Contract Law, actually, there was once a chapter called “Foreign Trade Brokerage” in the draft made by experts and scholars, which was fi nally deleted due to their inconsistent recognition. However, they kept a special
chapter called “Contract for Brokerage” in the Contract Law, under which, “a brokerage contract refers to a contract whereby the broker is, in his/her own name, engaged in trade activities for the benefi t of the principal, and the principal pays the remuneration” (Article 412) and “where a contract is concluded between a broker and a third party, the broker shall directly have the rights and assume obligations under the contract” (Article 421).
In this respect, the Explanation and Application of Contract Law, which is chiefl y edited by Li Guoguang, vice-Presidents of the Supreme People's Court, and written by economic court of the Supreme People's Court, provides that foreign trade agency contracts under the Provisional Rules are essentially brokerage contracts. Opinions by Beijing Municipal Higher People's Court on Several Issues Concerning the Application of Deciding the Validity of Arbitration Agreement and Application for Setting Aside Arbitration Award, which was issued on December 13, 1999, has clarifi ed that “foreign trade agency system, as a specifi c legal system in China’s foreign trade activities, does not belong to the agency system prescribed in the General Principle of Civil Law. The arbitration clause concluded by the agent in his/her own name has no binding force to the principal (exclusive of in the commission contract under the Contract Law)”
Therefore, we think that China’s foreign trade agency contracts are actually brokerage contracts and can not apply to Article 402 of Contract Law to directly bind the unnamed principal. However, given that there are still confl icts on the understanding of this rule, it is advised that parties of such transaction, in particular foreign businessmen, shall have to pay particular attention to above confl icts when signing such import and export contract and as far as possible make necessary arrangement and expression in the contract. After all, Article 402 of Contract Law does not reject the otherwise agreement made between the parties.
David YangTahota Law FirmSenior Partner, Vice Director Unit A, 27th fl oor, World Trade CenterNo.117 Gulou Nan Road, Chengdu, P.R.ChinaTel: 86-28-86759432 E-mail:[email protected]
Jeff rey Blount是Fulbright香港和北京办事处的负责人兼该所国际业务的联席负责人,他表示“随着中国企业在全球的扩展,中国将继续是本所客户的重要市场。我们在亚洲设立办事处对客户而言至关重要,我们将秉承提供跨境服务的悠久传统,充分发挥本所优势。”
REGIONFulbright expands Asian presence
Fulbright & Jaworski has added fi ve new law-yers to its Beijing and Hong Kong operations.
Legal consultant He Yuping joins Fulbright’s Beijing location from a large national oil company in China and associate Joanne Du has joined from another major international law fi rm. Meanwhile, legal consultant Lori Ji has relocated from Fulbright’s Hong Kong location to round out the new additions in Beijing.
Additionally, partner Steve Vogel has relocated to Hong Kong from Fulbright’s London location. Senior associate Ben Smith joins the fi rm in Hong Kong from a major international fi rm in London and counsel Alexandra Freeman has also joined from an international fi rm.
Fulbright’s growth in Asia continues the expansion of the fi rm’s global energy and projects practice. In recent months, Fulbright has also expanded its locations in the Middle East and the UK.
“China continues to be a dynamic and important market for our clients as their global businesses expand,” said Jeffrey Blount, the head of Fulbright’s Hong Kong and Beijing locations and co-head of the fi rm’s international practice. “Our presence in Asia is key for our clients, as we continue our long history of cross-border work and to continue building on our strengths.” ALB
24
NEWS >> ISSUE 5.4
various Zhonglun
Zhonglun consolidates partnership As the marketplace for legal services matures and competition for senior lawyers who control a book of business increases, law fi rms, especially large fi rms, need to offer fl exibility in partnership and more choices on the income progression ladder to productive partners.
Zhonglun is one of a few fi rms that has been able to evolve into a multiple-tier partnership structure. All levels of the fi rm’s partnership have been expanded and consolidated with a large number of internal promotions and lateral hires.
Six lateral hires have been made in order to increase the number of its second-tier partners. These new partners joined Zhonglun from domestic and international fi rms in Beijing, Shanghai and Shenzhen (see lateral hire table).
Six of the fi rm’s second-tier partners have been promoted to fi rst-tier partners, including Wang Fei and Lu Hongda in Beijing,
APPOINTMENTS
LATERAL HIRESName Leaving Joining Location Position Practice
Howard Zhang
O’Melveny & Myers
Davis Polk & Wardwell
Beijing Partner M&A, private equity
Wang Jun Zhengtai Gaopeng & Partners
Beijing Partner Banking & fi nance, M&A
Yi Jian Zhanda Gaopeng & Partners
Beijing Partner Real estate, corporate
Zhang Yan Capitallaw & Partners
HaoLiWen Shanghai Partner WTO, IP, litigation
Qiao Bo Yao Liang J & F Shanghai Partner Corporate, M&A, labour law
Liu Honghuan
Zhonglun Jun He Beijing Partner Litigation and arbitration
Fei Ning Haiwen & Partners
Jun He Shanghai Partner Litigation and arbitration, FDI, M&A
Huang Song Haiwen & Partners
Jun He Shanghai Partner M&A, VC
Neil Campbell
Paul Hastings
O’Melveny & Myers
Hong Kong
Partner Investment funds, securitisation
Cheng Jun Kun Lun Zhonglun Beijing Partner Foreign investment, corporate
Chen Jihong Zhonglun W & D
Zhonglun Beijing Partner IP/IT
Ge Yongbin Zhenghan Zhonglun Shanghai Partner Banking & fi nance
Gong Lefan Jones Day Zhonglun Shanghai Partner M&A, private equity
Wang Enshun
King & Wood
Zhonglun Shanghai Partner Securities
The US report
Chen Jihong
Bear Stearn buyout sparks recruitment frenzyA ‘feeding frenzy’ of headhunters and law fi rm hopefuls has been triggered by the collapse and sale of major US investment bank Bear Stearn to JPMorgan Chase.
JPMorgan Chase is expected to lay off a signifi cant number of the bank’s 100-plus lawyers from its 475-strong legal and compliance group, which has the legal scene plotting.
Weil Gotshal & Manges got in early and recruited Bear Stearns’ chief operating offi cer for legal and compliance, David Strumeyer, as its new global executive director in March.
Fried Frank reveals rising revenue fi guresFried Frank Harris Shriver & Jacobson has announced its fi nancial results for 2007/08. The US fi rm revealed that its gross revenue was up by 14% to US$537.4m, its net profi t increased by 10.3% to US$227.3m, and its average profi t per equity partner (PEP) rose by 5% to US$1.6m.
Kirsch to take over from ChaffetzClifford Chance New York partner Mark Kirsch is set to succeed Peter Chaffetz as the fi rm’s new litigation and dispute resolution head. Kirsch, who has headed the fi rm’s US litigation practice for the past four years, will serve a four-year term and take on the global role in May. He stood uncontested.
Top US fi rms fl ourish in the face of market meltdown2007 was the strongest on record for the majority of US fi rms.The top 50 US fi rms had a profi table year despite market upheaval last summer, with an impressive total of US$46.8bn in revenue for 2007 – an increase of more than 16% on their 2006 total. The average PEP at the leading group of US fi rms showed smaller – although still signifi cant – growth.
White & Case bankruptcy team on the money US fi rm White & Case secured the top spot for advisory roles on bankruptcies during 2007 with 691 matters. They beat closest rival Duane Morris (which had roles on 261 matters) by almost three-fold. Latham & Watkins, Weil Gotshal & Manges and Winston & Strawn fi lled out the top fi ve spots respectively.
ROUNDUP
■ High-profi le banking partner Jonathan Nabarro bid goodbye to Weil Gotshal & Manges in late March.
■ Skadden Arps Slate Meagher & Flom is set to open an offi ce in São Paulo, Brazil, to be headed up by M&A/corporate partner Jonathan Bisgaier.
■ Virginia-based, 750-lawyer fi rm McGuireWoods will join forces with North Carolina’s Helms Mullis Wicker to form a 900-lawyer, 17-city fi rm.
■ Bryan Cave opened a new offi ce in San Francisco in March; it will be headed by litigation partner Lynn McCreary.
PROMOTIONSName Firm Offi ce Practice
Colin Liu CMS Hasche Sigle Shanghai FDI, anti-trust, arbitration, IP
Richard Kim Allen & Overy Shanghai Corporate
Ji Zou Allen & Overy Shanghai Corporate
Roger Lui Allen & Overy Hong Kong Banking
William Woo
Allen & Overy Hong Kong Corporate
Karen Ip Herbert Smith Beijing Corporate
Carolyn Sng Herbert Smith Hong Kong Corporate
25
NEWS>>www.asianlegalonline.com
Kong Wei and Zhang Hua in Shanghai, and Su Ming and Zhuang Jiazi in Shenzhen.
In addition, six fi xed-income partners have been admitted to the second-tier partnership, while fi ve senior associates have been appointed to fi xed-income partners.
J & F grows corporate practiceTo increase its capacity to handle the new wave of corporate and M&A work coming in, Shanghai-based J & F have appointed Qiao Bo as a senior partner.
Qiao Bo has almost 10 years’ practice experience in corporate, M&A, banking & fi nance, and labour law. Before joining J & F, he was a partner with Shanghai Yao Liang Law Offi ces.
“We’re very pleased to have Qiao Bo and are confi dent that our corporate, fi nance and labour law practices will be further enhanced with Qiao Bo’s appointment,” said Scott Guan, J & F’s co-managing partner, who used to work with Qiao Bo at Yao Liang prior to his appointment with J & F.
HaoLiWen hires international trade partnerFormal partner with Shanghai Capitallaw & Partners, Zhang Yan specialises in anti-dumping, IP and litigation practices, and has joined Shanghai-based HaoLiwen as a senior partner.
Zhang has represented many domestic clients in anti-dumping investigations brought in the US and the European Union, and has achieved positive results for clients in most cases.
Prior to his private practice which started in 2004, he had served as in-house counsel in domestic and international companies, primarily providing remedies for international trade frictions, including anti-dumping, anti-subsidy and safeguard issues. He had also served as a judge with a Shanghai intermediate court, responsible for adjudication of corporate and commercial cases.
Promotions all round The London offi ce of Freshfi elds Bruckhaus Deringer will welcome 10 new partners in May, after an annual round of promotions for the fi rm which led to 25 new partners.
Burges Salmon is another fi rm caught up in the promotions whirlwind. The Bristol-based fi rm announced in March that six of its associates were soon to be partners. The promotions are effective from May and will take the fi rm’s total partner number to 72. Meanwhile, Trowers & Hamlins has resisted the promotions frenzy and decreased its partner promotion count by almost three-quarters compared to last year.
Promotions frenzy continues City fi rms Pinsent Masons, CMS Cameron McKenna, and Ashurst and Herbert Smith have also revealed their partner promotions for 2008, with both Pinset and Ashurst making up 17 new partners and CMS Cameron McKenna following closely with 11. Ashurst’s City rival Herbert Smith announced that a fi rm-record of 18 new partners will join the ranks from 1 May.
Clifford Chance increases European reach Clifford Chance is due to launch an offi ce in the Ukraine this summer, bringing the fi rm’s Eastern Europe offi ce count to six.
The new base will be headed up by Nick Fletcher, currently managing partner of the fi rm’s Warsaw offi ce. The fi rm is aiming for a team of around 20 local lawyers on opening.
Slaughter and May management shift Slaughter and May has announced that corporate partner Frances Murphy will replace new senior partner Chris Saul as head of the corporate department. She is the fi rst female head in the UK fi rm’s fi nal round of management elections.
ROUNDUP
■ Wragge & Co announced in March that it is due to boost its partner count, with nine new partners set to join the Birmingham-based fi rm in May.
■ Freshfi elds Bruckhaus Deringer welcomed Mark Rawlinson as the fi rm’s new departmental managing partner (DMP) for its London Corporate practice in April, taking over from Tim Jones.
■ Energy partner Doron Ezickson took over from David Dalgarno to become the new offi ce head at the London base of US fi rm McDermott Will & Emery. Ezickson is co-head of the international energy practice.
■ City fi rm Lovells has rocketed into the mergermarket rankings to take a place as one of the top three fi rms by value for UK M&A deals in the fi rst quarter. The fi rm jjjump dedd 333 3888 llplaces.
Haiwen loses partners to Jun He in ShanghaiJun He and Haiwen & Partners are both regarded as top-tier legal service providers by their clients and peers. However, the Haiwen Shanghai offi ce recently lost two senior partners to Jun He.
Fei Ning, former managing partner of Haiwen Shanghai offi ce, and Huang Song, former Haiwen partner, have joined Jun He Shanghai as partners.
Fei Ning’s practice range spans domestic and foreign commercial dispute resolution, arbitration, litigation, and mediation, and also acts as an arbitrator for CIETAC. Huang Song has expertise in foreign investment, M&A, and venture capital investment. He is also an expert in electronic commerce and internet-related legal issues.
Also joining Jun He recently was dispute resolution specialist Liu Honghuan, who is now a partner in the Jun He Beijing offi ce. Prior to joining Jun He, Liu was the head of litigation and arbitration practice group in Zhonglun.
Gaopeng & Partners adds three lawyersGaopeng & Partners has appointed Wang Jun and Yi Jian as partners and Wang Tao as senior counsel.
Wang Jun joined the fi rm from Beijing Zhengtai law fi rm, where he served as the vice head of the international investment and trade department. IBM, Global Finance Group, Avaya, China Everbright
Bank, China Development Bank and The People’s Bank of China are among the clients he has advised.
Yi Jian joined from Beijing Zhanda and had served as in-house counsel in State-owned enterprises, foreign-invested companies and government offi ces before he moved into private practice. His corporate practice has a focus on real estate sector.
Senior counsel Wang Tao is a heavyweight addition to the fi rm’s WTO practice group. Before joining Gaopeng, he had served as the deputy director of the law and training department in the China Chamber of Commerce for Import & Export of Textiles for nearly seven years. He excels in representing Chinese exporters in overseas anti-dumping cases.
高朋新增三名律师高朋新增三名律师高朋律师事务所上月聘任王军和易健为合伙人,王
涛为高级顾问。加盟高朋前,王军曾担任证泰律师事务所国际投
资和贸易部副主管,服务过的客户包括IBM、Global Finance Group 、Avaya 、中国光大银行、国家开发银行和中国人民银行。易健则曾任职北京展达律师事务所。自1993年开始执业以来,他先后担任多家国有企业、外资企业、民营企业和政府部门的法律顾问。他具有丰富的房地产和公司法律服务工作经验,并致力于帮助企业建立良好的法律框架和公司治理结构。
Howard Zhang leavesOMM for Davis PolkFormer managing partnerof O’Melveny & Myers’Beijing offi ce HowardZhang has joined DavisPolk & Wardwell as apartner in Beijing.
Zhang is reputed for his expertise in venture capital and private equity transactions. At his new role in Davis Polk, he will advise clients on cross-border securities, M&A and strategic investment transactions.
Davis Polk’s Beijing offi ce opened in February 2007 and is headed by partner Show-Mao Chen.
The fi rm was lead counsel for the Industrial and Commercial Bank of China (ICBC) on its US$21.6bn dual-listed initial public offering, the largest IPO in history. It also advised ICBC on a US$3.78bn investment by Goldman Sachs, Allianz Group and American Express.
Howard Zhang
Howard Zhang加入Davis PolkHoward Zhang加入Davis Polk美迈斯 (O'Melveny & Myers) 北京代表处前管理
合伙人Howard Zhang以合伙人身份加盟Davis Polk & Wardwell北京代表处。
Davis Polk的北京代表处于2007年2月开业,由合伙人Show-Mao Chen 负责。该所为有史以来全球最大的IPO —— 中国工商银行216亿美元的首次公开招股 —— 担任首席顾问,还曾就高盛、安联集团和美国运通投资的37.8亿美元为中国工商银行提供法律服务。
Paul Hastings O’Melveny & Myers
Structured fi nance specialist joins O’Melveny Neil Campbell, former chair of the Asian securitisation practice at Paul Hastings in Hong Kong, has made a move to O’Melveny & Myers to take advantage of the fi rm’s reputation for doing innovative legal work for brand name clients.
Campbell brings an impressive track record of handling large and novel securitisation and structured fi nance transactions to O’Melveny. His fi nance work will bolster O’Melveny’s existing platform for serving key fi nancial institutions and investment fund clients in Asian and UK markets.Campbell has practised in Hong Kong for 14 years, handling securitisations involving assets from throughout Asia, including Japan and Korea, as well as the US and the UK, secured fi nance transactions involving collateral sited in China, and traditional fi nance work. He joined Clifford Chance in London as senior assistant solicitor in 1992 and relocated to the fi rm’s Hong Kong offi ce in 1994. In 1997, he moved to Sidley Austin as a partner, and in 2003 he joined Paul Hastings as a partner.
German fi rm appoints fi rst local partnerLeading German fi rm CMS Hasche Sigle has showed its commitment to China by promoting a Chinese nationality associate to its partnership. Colin Liu, the new partner, is the fi rst local partner appointed by the fi rm in Shanghai.
Liu has been part of the core team at the Shanghai Offi ce for fi ve years and his areas of expertise include foreign direct investment, anti-trust law, international arbitration and intellectual property.
“We’re making a statement regarding the professional opportunities for our Chinese lawyers and colleagues,” said Ulrike Glück, Equity Partner in charge of the Shanghai Offi ce, commenting on Liu’s appointment.
Before joining CMS Hasche Sigle in Shanghai, he practised law at several other large international law fi rms. In 2007, Liu was seconded to the Stuttgart Offi ce of CMS Hasche Sigle in Stuttgart for several months.
Gray & Perkins strengthens Beijing presenceWith China taking over Japan and the US to be Australia’s largest trading partner, Sydney-headquartered fi rm Gray & Perkins is actively gearingup its practice in China.
At the end of 2007,the fi rm entered into analliance with German law fi rm Brandi Dröge PiltzHeuer & Gronemeyer(BDPHG) to develop joint activities in China.
A few months later, the fi rm has appointed Chelsea Li be a resident partner in its Beijing offi ce.
Fluent in English and Mandarin, Li has substantial China experience in telecoms and IT-related law and has worked on a wide variety of transactions in these sectors over eight years. Her broader experience lies in licensing, commercial transactions and regulatory work.
During her time as an in-house legal counsel, Li worked on a variety of major projects and complex telecom/IT projects, including engineering/operation system upgrades and services, submarine cable network constructions, upgrades and maintenance, telecom cable landing stations, point-to-point telecom services and co-location services.
In private practice and as an in-house legal counsel, Li has advised multinational companies such as China Mobile and China Netcom and a wide range of other companies and their subsidiaries in China and the Asia-Pacifi c region.
A&O expands international capacityWith 28 promotions to partners across Allen & Overy’s 15 offi ces in 13 countries around the world, the fi rm’s total number of partners has reached 505 globally, exceeding the 500 mark forthe fi rst time.
The promotions highlight A&O’s continued investment in its international network. Over 70% of the new partners come from outside of London, and one quarter of the new partners are also located in emerging market offi ces such as Shanghai, Bangkok, Dubai, Moscow and Warsaw. As well as a wide geographic spread, the promotions also demonstrate stable investment in A&O’s key market sectors with promotions across six different practice groups globally.
Four of the 28 new partners are based in the Greater China region, including two in Shanghai and two in Hong Kong.
Despite the turmoil in the global markets and a looming recession in the US, law fi rms in Shanghai are profi ting from the spike in corporate activity. Prospects for the local legal industry remain sound and strong, ALB China reports
www.asianlegalonline.com
29
REPORTSPECIALALB
SHANGHAI
Shanghai shines amid global turmoil
When many of the world’s major economies are being affected by the global credit crunch, it seems to be a
less-than-ideal time for this year’s special report on Shanghai. Although economists indicate that the turmoil in the global markets is having a limited and indirect impact on China, Shanghai is feeling the pinch as it transforms into an interna-tional fi nancial hub.
The Shanghai index has plunged more than 45% from its high in October 2007, putting the once red-hot market among the world’s worst performers. Some QDII funds have reported large losses due to volatility in the world market. There has been a slowdown in the rate that new QDII products and IPOs have been launched. Multinational companies and interna-tional fi nancial institutions’ shortage of capital at home may lead them to reduce their investment and business activities here. Export-oriented companies may face a drop in demand caused by a possible US recession and the shipping industry may see a decrease in contracts as a result.
Given these diffi cult market conditions, it would be reasonable to predict that a downturn in economic activity may impact the bottom line for law fi rms and dampen their willingness to share with ALB their perspectives on the local legal industry.
However, after speaking to a number of legal practitioners in Shanghai, ALB’s concern has been allayed. The legal fraternity in Shanghai, which has more skyscrapers than New York and a public transport system that will soon overtake London’s in size, is looking at 2008 with more optimism than are their counter-parts in those two cities.
“Share price falls, further appreciation of RMB, and a possible recession don’t mean a drop in deal fl ow,” says Hubert Tse, managing director of Yuan Tai and head
SHANGHAI AT A GLANCE • Number of PRC lawyers: 8,138
• Number of PRC law fi rms: 759
• Number of representative offi ces of foreign law fi rms: 88
• Number of representative offi ces of Hong Kong fi rms: 16
• Number of regional headquarters of multinational companies: 174
• Shanghai-headquartered Fortune 500 companies: 3
Source: Shanghai Bar Association, as at 30 July 2007
of the fi rm’s international business group. “On the contrary, it provides opportunities for foreign investors to purchase shares in domestically listed companies and invest in RMB-denominated assets to increase their value as RMB appreciates.”
In addition, as assets in the US become more affordable, lawyers predict an increase in overseas M&A activity by domestic companies. Amid the gloom in the global market, there are signs of hope.
The continuing economic growth is driv-ing an increasing number of international fi rms to expand into China. Statistically, Shanghai remains the most popular choice for foreign fi rms to enter the country for the fi rst time, and it is still the top city in terms of the number of representative of-fi ces of international fi rms.
“Things are becoming more competitive, but by the same token, with the economy still doing relatively well, there are just lots of opportunities for both foreign law fi rms and Chinese law fi rms. These are pretty good days to be practising law in Shanghai,” says John Grobowski, who practised in Shanghai with Baker & McKenzie for 17 years and now enjoys a new set of chal-lenges and opportunities as the head of Faegre & Benson’s Shanghai offi ce.
Pillars of prosperityWith the local economy going from strength to strength, the question of whether the US sub-prime crisis will have any impact on Shanghai no longer matters to the legal sector. Home to over 3,500 banks and the country’s largest stock exchange, Shanghai has been fi rmly put on the map as one of China’s main economic powerhouses. Its confi dence and success rests on two pillars: banking and fi nance.
In 2007, the PRC banking industry experienced much reform and restruc-turing, and became more open to foreign investors. Many Shanghai firms have
30
REPORTSPECIALALB
SHANGHAI
ISSUE 5.4
TOP FIVE SHANGHAI OFFICES OF BEIJING-HEADQUARTERED FIRMS BY SIZE
Firm Managing partner
Number of qualifi ed lawyers
King & Wood
Zhang Yi 65
Zhong Lun Qiao Wenjun 60Dacheng Xiao Jinquan 59Jun He Li Qi 40Zhongzi Sun Junbao 18Source: Shanghai Bar Association, as at 30 July 2007
built on their relationships with domestic and international banking clients and have followed closely the development of business in traditional and emerging product lines.
Jun He Law Offi ces’ Shanghai offi ce has reinforced its leadership in the banking sector by representing major banks in fi -nancing transactions totalling more than US$30bn, including acquisition fi nance, project fi nance, structured fi nance, asset fi nance and trade fi nance transactions.
“Jun He Shanghai offi ce has achieved another banner year, especially in the banking area. Although tight monetary policy will continue in 2008, the pipeline of lending and fi nancing deals will remain strong,” says George Wang, partner with Jun He.
As more foreign banks become locally incorporated, their demand for PRC legal services will continue to grow. “All the new law, particularly new property law and bankruptcy law, will have a signifi -cant infl uence on both international and local fi nancial institutions,” says Charles Qin, founding partner of banking and fi nance boutique fi rm Llinks Law Offi ces. “Increasingly, they will need local counsel to advise them on regulatory and compli-ance reviews and on their consultation with the government authorities on general and specifi c issues.”
Another trend witnessed by fi nance spe-cialists such as Llinks and Yuan Tai is the rise of the funds management industry in Shanghai. In recent years, both fi rms have advised foreign and local banks and insurance companies on establishing joint venture and domestic funds management companies (FMCs), and have acted on FMC investments at home and overseas.
“With more QDII and QFII licences being approved and the investment quota expanding, the funds management industry is a fast-emerging and cutting-edge practice area for Shanghai fi rms,” says Qin. “The amended Partnership Enterprise Law allows fund managers to adopt a more fl exible investment structure and helps the industry to grow in strength and sophistication.”
Currently, there are 60 FMCs, half of which are joint ventures with foreign fi -
George Wang, Jun He Law Offi ces
“ The legal service market in Shanghai is very large and growing very quickly, with a tremendous amount of potential and opportunity … To gain a foothold in the market, mid- to small-sized local fi rms have to develop their own niche practices and fi nd the right market segment”
nancial institutions. Twenty have secured their QDII qualifi cations. Yuan Tai’s funds practice has a focus on QDII.
The fi rm enjoys a large share of the market. It has advised China Southern Fund and ICBC-Credit Suisse AMC on their fi rst QDII product launches and is currently advising 10 other leading do-mestic and joint venture FMCs on their QDII applications.
“Despite the volatility in the world mar-ket, the pace of growth of QDII funds will not be hampered. The QDII scheme is the government’s long-term investment strat-egy, so there will be more opportunities for dedicated funds management law fi rms to participate in this visionary outbound investment program,” says Tse.
In addition, the three sovereign wealth funds (SWFs) – China Investment Corporation, National Social Security Fund and China-Africa Development Fund – are reportedly planning to outsource a combined US$320bn to foreign asset man-agers over the next three years, according to a report by Z-Ben Advisors, experts on China’s investment management industry.
TOP FIVE SHANGHAI FIRMS BY SIZE
Firm Managing partner
Number of qualifi ed lawyers
AllBright Shi Huanzhang 155Grandall Shanghai
Guan Jianjun 74
Jin Mao Wu Boqing 70Brilliance Yu Jianguo 70Zhenghan Wu Yugang 52Source: Shanghai Bar Association, as at 30 July 2007
www.asianlegalonline.com
31
REPORTSPECIALALB
SHANGHAI
FIR
M P
RO
FILE
AllBright has acted on Shanghai Industry Holdings Limited’s (“SIHL”) successful acquisition of Shanghai Urban Development (Holdings) Co., Ltd. (“SUDH”) which is the biggest wholly state-owned real estate
development enterprise in Xuhui district of Shanghai. SIHL fi nally obtained a 59% equity interest of SUDH on 25th December 2007 with the total cash consideration amounting to RMB 3.7Billion via two steps (fi rst, 40% equity interest capital increase and second, equity transfer).
SIHL (HKSE stock code “363”) was listed on the Stock Exchange of Hong Kong on 30th May 1996. The majority shareholder of SIHL is Shanghai Industrial Investment (Holdings) Co., Ltd (“SIIC”). Under the auspices of the Shanghai municipal government, SIIC incorporated in Hong Kong as a commercial entity in 1981. It is currently the largest and most resourceful overseas enterprise established by the Shanghai municipal government. With the shareholders’ equity being HK$17.505 billion and turnover amounting to HK$6.851 billion in 2006, SIHL is the fl agship in the SIIC group of companies now.
With total assets exceeding RMB11 billion, SUDH has a land bank of more than 2 million square meters of gross fl oor area, including commercial and residential development projects of strategic value located in Shanghai, Kunshan in Jiangsu, Changsha in Hunan and Hefei in Anhui. Among them are “Xujiahui Centre” and “Urban Cradle”. “Xujiahui Centre” takes up 13.2 hectare with the total estimated area more than 630,000
square meters which so far is one of the largest comprehensive commercial projects in downtown Shanghai. “Urban Cradle” takes up 94.3 hectare with the total surveyed area being about 830,000 square meters which is the largest residential project in the middle ring road territory of Shanghai.
The M&A Project is so complicated as result of transferring Chinese state-owned rights and interests, and foreign capital’s taking over a native real estate company. In addition, the purchaser who is a company listed in HKSE shall conform to the rules of HKSE. Meanwhile, relevant regulation on takeover of domestic company by foreign-funded enterprises was revised and policy restricting the foreign-funded enterprises to enter real estate industry came into being during the term of the M&A in China. AllBright’s M&A team, led by senior partner Julia Zhu, joined the M&A Project since the end of May, 2006 and provided with the whole legal services including but not limited to LDD, participating in several rounds negotiations, drafting agreements, and rendering several Chinese Legal Opinions during the term of more than one year and a half. Allbright was also entrusted by respective parties to submit to examinaton and approval authorities for approval and complete the alteration procedure with the Industrial and Commercial administration.
AllBright Steers Shanghaireal estate M&A by foreign capital of the year
“The transaction is regarded as the largeset real estate M&A in Shanghai 2007.”
32
REPORTSPECIALALB
SHANGHAI
ISSUE 5.4
Law fi rms in Shanghai are well placed to represent international and local fund man-agers in the outsourcing process.
The symbolic Jin Mao Tower in Pudong fi nancial district will soon be eclipsed by a new building nearby – the Shanghai World Financial Centre. The 101-storey, 492-metre high building will be the tall-est building in Asia and a new symbol of Shanghai’s rise to prominence as Asia’s international fi nancial centre.
Market segmentationThe leaders among fi rms in Shanghai re-main largely unchanged; Jun He, King & Wood, Zhong Lun Law Firm and Fangda Partners still enjoy a relatively large share of the high-end legal service market.
However, Shanghai’s unique entre-preneurial culture provides other fi rms with an abundance of work, especially in the M&A, securities, construction and dispute resolution arenas. The local business community has seen the rise of a number of home-grown corporate and commercial firms including Grandall Legal Group, Chen & Co, Boss & Young, J&F PRC Lawyers, Llinks, HaoLiWen and Zhenghan.
Unlike Beijing, where the legal market is consolidating and mergers between fi rms frequently take place, the distinct char-acteristic of the current Shanghai legal sector is that fi rms are specialising.
The past few years have seen a number of law fi rms split. Examples are easy to think of: last year, the tax and fi nance department of Co-Effort Law Firm left to set up tax bou-tique Zuo Quan; three partners departed the Shanghai offi ces of Commerce & Finance and Jingtian & Gongcheng to set up a pri-vate equity-focused practice named Han Yi; two international practice-oriented partners left AllBright and established MWE China in 2006; and a team of partners left Zhong Lun Shanghai offi ce and founded fi nance boutique Yuan Tai in 2004.
Nevertheless, there still are one or two examples of consolidation among Shanghai firms, including the merger between shipping fi rms Sloma & Co and Siway & Seaway in September last year.
“The legal service market in Shanghai is very large and growing very quickly, with a tremendous amount of potential and opportunity. But the high-end mar-ket is remarkably competitive and most of the large restructuring, IPO, FDI and banking transactions are dominated by
Beijing firms’ Shanghai offices,” says George Wang of Jun He, commenting on the reality in a matter-of-fact way.
“But as the corporate sector and fi nan-cial market become increasingly dynamic, the need for specialist legal services is growing. To gain a foothold in the market, mid- to small-sized fi rms have to develop their own niche practices and fi nd the right market segment.”
There is no denying that most of the new fi rms are focusing on one or two specialty areas. Larger fi rms that are fl ourishing are the ones who have found their niche and have dedicated their resources and exper-tise to particular needs of clients. Grandall, with its top-notch capital markets practice, and Zhenghan, with a sound reputation in commercial dispute resolution, are just two of the many.
The increasingly capable in-house teams with in-depth local knowledge have en-gineered the recent changes in private practice.
“Many multinational companies in Shanghai have hired local private practi-tioners to head their in-house teams – lo-cal fi rms have been benefi ting from that,” says Zhao Deming, managing partner of HaoLiWen. “Local fi rms are winning more mandates from these localised in-house departments not because of ‘guanxi’, but because these in-house lawyers understand the local legal system well, know who the most competent service providers are in cer-tain areas and are able to manage external counsel effi ciently.”
Llinks’ Charles Qin agrees with Zhao, saying that the increasingly sophisticated regulatory environment coupled with se-nior in-house counsel’s previous private practice experience is pushing the legal profession forward to refl ect the increas-ing diversity of legal services needs.
“A large number of in-house counsel have private practice experience and some have worked in both local and international fi rms. They know very well how law fi rms or external legal counsel team work, and have a good grasp of the marketplace in terms of who are the leading fi rms in different prac-tice areas,” says Qin. “In-house counsel are more often having to turn to external coun-sel for legal advice, because the regulatory environment and legal system is becoming more sophisticated and specialised. In some large projects, in-house counsel will appoint a number of fi rms, each having different expertise, to act for them.”
Charles Qin, Llinks Law Offi ces
“ With more QDII and QFII licences being approved and the investment quota expanding, the funds management industry is a fast-emerging and cutting-edge practice area for Shanghai fi rms”
www.asianlegalonline.com
33
REPORTSPECIALALB
SHANGHAI
Dutch chemicals group DSM’s China regional headquarters in Shanghai has one of the in-house departments that has mas-tered that know-how. Last year, Catherine Wang was appointed as the general counsel for the Greater China region, a new posi-tion the company created in light of its fast-expanding China business.
“Our company’s long-term investment strategy and growing commitment in China will spark a large amount of M&A transactional, corporate restructuring and JV establishment work across the country,” says Wang.
To deal with this activity, Wang keeps a good-sized in-house team, consisting of seven staff. This enables her to build a substantial knowledge base within the company. However, DSM’s expansion plan has meant that Wang has to rely on exter-nal counsel for certain types of transac-tions. When she outsources work, she likes to know exactly where it is going and, in deciding where to send work, she looks at her previous dealings with an individual partner, not at a fi rm’s reputation.
Zhao Deming, HaoLiWen PRC Attorneys
“Local fi rms are winning more mandates from localised in-house departments of multinational companies. It is not because of ‘guanxi’, but because these in-house lawyers understand the local legal system well, know who the most competent service providers are in certain areas, and are able to manage external counsel effi ciently”
FIR
M P
RO
FILE
I. Provisions and Initiation of Criminal ProceedingsIn accordance with Article 59 of the PRC Trademark Law, Article 214 of the PRC Criminal Law and relevant judicial interpretations, any individual or enterprise knowingly selling counterfeit products with the sales amount of not less than RMB 50,000 shall be investigated for criminal offences.
There are three ways by which the criminal proceedings may be initiated: 1. Report to the Public Security Bureau
(“PSB”). The claimant may fi le a statement of complaint with the PSB in the place where the crime was committed, or in the place where the infringing party resides;
2. Direct lawsuit. The claimant may sue the infringing party at a court (this is called the “private prosecution”) in the place where the crime was committed, or in the place where the infringer resides; or
3. Case transfer. The Administration for Industry and Commerce (“AIC”) may transfer a case to the PSB in the same
Counterfeit Product Sales:
Criminal Remedy in Chinalocation, if it fi nds out that the infringer has knowingly sold counterfeit products with the sales amount of not less than RMB 50,000 through investigation.
II. Procedural MattersReport to the PSB and Case transfer. After the PSB has concluded the investigation, it shall transfer the case to the people's procuratorate with a recommendation to initiate prosecution. If the people's procuratorate considers that (1) the facts of the infringer's crime have been ascertained; (2) the evidence is suffi cient and (3) the criminal liability should be investigated according to law, it shall make a decision to initiate a prosecution and shall initiate a public prosecution at court. In case where the infringer is a company, the court may sentence the person-in-charge directly responsible and other persons directly responsible within the company to fi xed-term imprisonment of not more than three years or criminal detention, and fi ne the infringer company concurrently or independently, if the sales
amount of the counterfeit products is not less than RMB 50,000. If the sales amount of the counterfeit products is not less than RMB 250,000, the court may hold person-in-charge directly responsible and other persons directly responsible be criminally liable by way of imposing a fi xed-term imprisonment of not less than three years but not more than seven years and fi ne the infringer company concurrently.
Direct lawsuit. If the infringer is found guilty, the court shall render the same judgement as outlined in 1. Report to the PSB and Case transfer.
him to keep an effective control over the work he sends out.
Having worked with many firms in Shanghai, Tan views their services posi-tively. “Shanghai local fi rms are strong in government relations advisory. They act as a bridge between multinationals and the local government. They are hard-working, conscientious and solution focused.”
Shanghai embraces more international fi rmsWith a slowdown in the economies of many countries and a possible US recession, China has become a good investment destination choice for international in-vestors. In the same way multinationals continue to expand into China through Shanghai, so too do foreign fi rms from all over the world. The infl ux of new foreign fi rms coming to Shanghai is seemingly unstoppable.
In the past two months alone, several fi rms, including US fi rms Miller, Canfi eld, Paddock and Stone, and Kirkpatrick & Lockhart Preston Gates Ellis, as well
“We use different firms in different projects dealing with different issues,” says Wang. “We use these fi rms because particular partners are there. If these partners swap fi rms, we’ll follow them.”
Leading global management and tech-nology consulting fi rm BearingPoint has another of the many outstanding in-house teams in Shanghai. The team is headed by Zhen Tan, general counsel for Greater China, who also served as regional com-pliance offi cer for BearingPoint in the Asia-Pacifi c region.
“Our in-house team can effectively manage routine legal matters. We get very good value from our internal lawyers,” says Tan. “But we need external expertise when certain sophisticated transactions come along.”
Tan keeps a panel list of fi rms with par-ticular specialties and reviews it on a regular basis. He adds more fi rms as his company’s business expands to new areas.
Tan knows private practice well, as he practised with King & Wood for many years prior to moving in-house. His un-derstanding of private practice enables
INTERNATIONAL FIRMS IN SHANGHAI
Origin Number of fi rmsPRC 759US 32Hong Kong 16UK 15Japan 8Singapore 7Australia 6Germany 6France 5Spain 2Korea 1Other 6Source: Shanghai Bar Association, as at 30 July 2007
36
REPORTSPECIALALB
SHANGHAI
ISSUE 5.4
as Spanish fi rm Cuatrecasas, have an-nounced that they are applying for a licence to open an office in Shanghai. A large number of representative of-fi ces opened in 2007. New arrivals in-clude Heller Ehrman, Foley & Lardner, Greenberg Traurig, Sheppard Mullin Richter & Hampton, and Skadden, Arps, Slate, Meagher & Flom.
“All international firms with offices overseas will look to China as a very im-portant part of their international plan and will want to take advantage of the growth. So foreign fi rms are still coming in and the ones doing well here are trying to expand,” says John Grobowski.
Spanish fi rm Garrigues opened its fi rst China offi ce in Shanghai in 2005 and business has been buoyant. Shanghai managing partner Francisco Soler indicates that his fi rm will apply for a licence to launch an offi ce in Beijing in due course, but he still regards Shanghai as a slightly more preferable destination for many foreign law fi rms.
“Shanghai is the fi nancial capital of the country with a large number of for-eign and Chinese banks and fi nancial institutions, and it is surrounded by many fi rst-rate industrial parks. Many
Spanish and Latin American industrial companies have landed in Shanghai and the Yangtze River Delta region, so we followed,” says Soler.
“There are still many more foreign companies in Shanghai than in Beijing, even though the number is growing fast in Beijing. Sometimes, deals in Beijing may be bigger, but there are more compa-nies in Shanghai that require day-to-day legal advice from law fi rms,” Soler adds.
Many of Garrigues’ clients in Shanghai are medium-sized companies. They are growing fast, but are not yet large enough to require full-time in-house legal counsel. This has resulted in the soaring demand for external legal support from fi rms like Garrigues.
Currently, 90% of Garrigues’ Shanghai office’s clients are Spanish and Latin American companies doing business in China. The remaining 10% is comprised of Chinese companies investing abroad – mainly mining and natural resource companies investing in South America. Soler expects the revenue from advising Chinese companies’ outbound investment to increase steadily in the coming years.
Although the market is getting more crowded and competitive due to an in-
REPORTSPECIALALB
SHANGHAI
ISSUE 5.4
creased number of competitors, foreign fi rms still see opportunities to grow.
Although he only started working at Faegre less than three months ago, Grobowski has already outlined the fi rm’s agenda for expansion. Grobowski notes that the Shanghai team will move into new offi ce space, which is three times bigger than the current one, and the headcount in Shanghai is expected to double to more than 50 in the next two years. In addition, he plans to broaden their practice areas from corporate and commercial.
“We’re planning to bring in senior profes-sionals, probably at partner level, to drive much more growth in areas of IP, tax and banking & fi nance,” says Grobowski.
In-house counsel in Shanghai are wel-coming the arrival of new fi rms and the expansion of foreign fi rms. To in-house lawyers, international fi rms can not only provide more choice and diverse services, but can also share their expertise with the local profession.
“It is a very positive thing that interna-tional fi rms continue coming to Shanghai. The personnel movement can distribute some expertise and know-how acquired by international lawyers to local in-house counsel and local law fi rms,” says Tan.
www.asianlegalonline.com
37
REPORTSPECIALALB
SHANGHAI
“Having a strong, international legal in-dustry is indispensable if Shanghai wants to establish itself as a regional business and fi nancial centre,” he continues.
Regarding the question of which city is the business and fi nancial centre in Asia, the rivalry between Shanghai and Hong Kong is no secret.
At the moment, Hong Kong may main-tain a lead over Shanghai, but few would deny that Shanghai will eventually over-take its competitor. ALB
Francisco Soler, Garrigues, Shanghai
“ There are still many more foreign companies in Shanghai than in Beijing, even though the number is growing fast in Beijing. Sometimes, deals in Beijing may be bigger, but there are more companies in Shanghai that require day-to-day legal advice from law fi rms”
Published by Key Media International Ltd., Unit 2706-2708, 27/F, 118 Connaught Road West, Hong Kong
For further information please contact Ms Eliz Lee - 852 2815 5988
Asian Legal Business is Asia’s leading legal magazine. Published from three regional centres, each issue is packed with news, hard hitting analysis and investigative journalism. Regional editors provide up to the minute legal and regulatory updates, while a team of dedicated journalists provide in-depth analysis of all the issues facing lawyers and in-house counsel throughout the region.
Name: Job title:
Company:
Address:
Email:
Phone: Fax:
“Asian Legal Business has done a great job covering local news, deals, and general trends in the legal market in Asia”Sam Farrands, partner, Minter Ellison
Please start my subscription to Asian Legal Business – CHINA immediately Fill out the form below and fax to Eliz Lee on 852 2815 5225.
Please invoice my company
ON AN ANNUAL SUBSCRIPTION
*USUAL PRICE US$290
36
IN-HOUSE SURVEY ISSUE 5.4
In-house counsel mind their own business
IN-HOUSE SURVEY asian legal business ISSUE 8.4
ALB In-House 38
IN-HOUSE SURVEYwww.asianlegalonline.com
39
Gone are the days when in-house counsel played second fi ddle to management or relied on external counsel for the bulk of their legal advice. Today’s in-house teams are taking fi rm control of their legal risk, and are increasingly discerning in their choice of law fi rms
Gillian Meller is experiencing an in-house evolution. As general manager of legal at Hong Kong’s mass transit railway operator MTR Corporation, Meller presided over the group’s merger with fellow state-owned railway com-
pany KCRC last year. The melding of two legal teams has forced her to take a fresh look at what it means to be in-house.
“It’s a bit like the story of the blind men and the elephant,” Meller says. “Everyone can describe a little bit of the role, but it’s hard to see the whole picture properly.” But that is changing. Meller says the in-house function at MTR Corporation is fast becoming more holistic and strategic. “We aren’t just dealing with contractual is-sues as they arise, but trying to take a proactive role and adding value to the business as legal risk managers.”
In fact, Meller says this evolution of the department is now her key management brief.
“The fi rst thing is really defi ning what the role of the in-house team is, and the second is delivering on that,” Meller explains. “I have to prove we can add more value by knowing the business and providing sound commercial advice – not just legal solutions.”
Samantha Chia, Singapore-based head of legal and compliance for Nokia Siemens Networks, has also seen her in-house role shape-shift as a result of a merger. When Nokia and Siemens announced they would combine their mobile and fi xed line phone network equipment businesses in 2006, little did either group know that a very public corruption and bribery scandal was about to engulf Siemens in Germany, forcing management to place renewed atten-tion on a fast-growing area for in-house counsel – compliance.
Issues Survey
IN-HOUSE SURVEY ISSUE 5.4
40
“I didn’t know how wide-spread these issues were, as it’s something quite new for us,” Chia says.
However, discussions with in-house and compliance coun-sel at an anti-corruption sum-mit in Hong Kong this year revealed otherwise. “Anti-cor-ruption and compliance are a huge concern for many com-panies, and particularly those who do business in the US or have US parents, as they’re subject to the Foreign Corrupt Practices Act and Securities and/or the Exchange Com-mission (SEC) rules,” she says. Chia reveals that now her most pressing task is to appoint a compliance counsel.
The stories of these two leading in-house lawyers are revealing, and are echoed by their peers. The in-house function in Asia is fast becoming a more strategic, forward-thinking proposition, demanding that in-house general counsel become proactive managers of legal risk. Compliance issues is also a rapidly grow-ing area of the mix. However, rather than shying away from the change, lawyers are stepping up to the plate.
“As a result of the merger [MTR/KCRC] process, you realise you have a broader role – that of a trusted advisor,” Meller explains. “The thing that appeals to me about being in-house is being asked to produce legal judgments in this commercial context.”
Proving the value of in-house counselThe majority of in-house legal teams in the Asia-Pacifi c region are either stable (49%), or growing in numbers (40%), according to the results of the ALB In-House Issues Survey. Only a pre-cious few (11%) are actually contracting in the current business environment. Likewise, 58% of respondents say the proportion of legal work being done in-house is increasing, with only 14% saying they are increasingly outsourcing work.
Team growth can be attributed to the booming economies and growing amount of legal work that is taking place in the region.
However, there is another reason, say lawyers – companies are starting to see the value of in-house advice, which is the reason they are choosing to keep an increasing amount of legal work under their own roof.
“Having a department in-house, as opposed to farming work out to law fi rms, is more cost-effective,” Chia argues. “Having a department right there also means they can easily handle the whole gamut of company legal issues.”
Your in-house team is:
Your legal work is increasingly:
Your legal team sits:
In-house teams in Asia
Paramjit Dhillon, Total Sports Asia
How many in your in-house team?
58%28%
14%
49%
40%
17.6%
4%
63.6%5.7%
3.4%
1.7%
4%
67% 33%As a central teamWithin relevant
business units
Done in-house
Stable
11%Contracting
Growing
6–10
1–5
50+
26–50
21–25
16–20
11–15
No change
Outsourced
IN-HOUSE SURVEYwww.asianlegalonline.com
41
Your annual legal spend is:
Your annual legal spend is:Counting the cost
ALB IN-HOUSE SURVEY
The ALB In-House Survey 2008 is a poll
of the top general counsel and their
legal teams across the Asia-Pacifi c region.
Covering a variety of hot topics from external
legal panels and legal spend to what in-house
counsel are really demanding from their external
legal providers, the survey presents a detailed and
accurate picture of the in-house legal landscape in
2008. The results, tabulated and graphed on the
following pages, is the region’s most up-to-date
guide to the in-house lawyer’s mindset.
41%
17%
17%6%
5%
7%7%
US$10,000–99,999
US$100,000–249,999
US$250,000–499,999US$500,000–1m
US$1m–5mUS$5m–10m
US$10m +
33%
7%
60%Increasing
No change
Decreasing
Meller agrees, saying that companies are seeing the value law-yers can add to situations, and that legal spend targets defi ne what can be outsourced.
Paramjit Dhillon, vice president of legal and HR at sports mar-keting group Total Sports Asia in Malaysia, argues convenience is also a key factor. “They’re relying less and less on external lawyers because when they need you, you’re there,” she says. “We try and turn around documents in 24 hours, which is something you can’t get from external fi rms.”
The survey also found that, alongside the growth of in-house legal departments, the majority of in-house teams have increased legal budgets to play with, as their total legal spend increases. Though in-house counsel do not appear to be looking to law fi rms for advice quite as much, legal spend fi gures show the size of the pie is growing in Asia, and there is no doubt that law fi rms are benefi ting from this increased workfl ow.
What in-house lawyers wantExternal counsel can no lon-ger feel safe in simply provid-ing clients recitations of exist-ing law with no commercial overlay. In-house lawyers are increasingly demanding, and commerciality is their great-est concern. “While putting the commercial spin on things is our job, we don’t want exter-nal legal advice produced in a vacuum,” Meller says.
Gillian Meller, MTR Corporation
“The fi rst thing is really defi ning what the role of the in-house team is, and the second is delivering on that”
GILLIAN MELLER, MTR CORPORATION
Accurate fee estimates
Faster turnaround
Accessibility
Commerciality
28%
22%
19%
31%
How could law fi rms best improve their service?
IN-HOUSE SURVEY ISSUE 5.4
42
However, when asked how their external counsel could most improve their level of service, signifi cant portions of respondents also fell into each of the categories calling for increased acces-sibility, faster turnaround times and accurate fee estimates, showing in-house lawyers expect improvement across the board. “We look for good practical business-oriented advice – nothing too legalistic,” Chia from Nokia Siemens Networks says. “We’re also looking for fast turnaround times and value for money.”Providing a warning – or perhaps a glimmer of hope – for law
fi rms in Asia, Meller says in-house lawyers “are less loyal to fi rms as a whole than they used to be”. While she has inherited existing relationships with Deacons, Slaughter and May, Lovells and Simmons & Simmons, as well as Mayer Brown JSM from the KCRC business, she argues the case that “individuals are more important” than the fi rm as a whole. Chia agrees: “We have some established relationships with fi rms from our time as Nokia, but we’re always on the lookout for good law fi rms and lawyers – we believe in healthy competition.”The ALB China survey results cement this idea. The majority of
companies have a formal panel of external providers, with many in the 1–5 fi rm range. However, more and more are relying on a much broader talent pool of over 10 law fi rms. Most in-house counsel also review their panels regularly, giving newer players the opportunity to source work.Refl ecting the point that it is the individual lawyer that counts,
by far the most important criteria fi rms demand from their external counsel is specifi c legal expertise. A whopping 98% of in-house respondents to ALB China’s survey nominated specifi c legal expertise as essential when outsourcing their work. Dhillon from Total Sports Asia says the sports marketing group looks for specifi c expertise. “If we needed a sports lawyer, we would go to
Do you have a specifi c external legal panel?
How often do you review your panel?
Panel views
11%11% 14% 15%
6%
6%2%
1%
1%
%
25%
61%
39%
How many fi rms are on your legal panel?
61%
30%
7%
1%
1%
No regular review
Yes
No
Every year
Every two years
Every three years
Every four or more years
Companies are starting to see the value of in-house advice, which is the reason they are choosing to keep an increasing amount of legal work under their own roof
IN-HOUSE SURVEYwww.asianlegalonline.com
43
someone strong in their knowledge of sports law; if it was a labour dispute, we would go to a labour lawyer,” she says.
Private practice? Never again Most in-house lawyers say they would not consider moving into private practice. Though many have cut their teeth as associates, senior associates and even partners at private practice law fi rms, being closer to the heart of a business and giving commercial legal advice – with the added lifestyle advantages – is proving satisfying for most.
“I didn’t really enjoy private practice,” Chia admits. “I wanted to be close to the business, and to contribute to those internal business decisions as a legal practitioner. You don’t see that very much in private practice – you may have a client come to you with a problem or issue, and you send off an opinion, but you would have to be lucky to be intimately involved in a project from start to fi nish,” Chia says.
Dhillon says her eight years in private practice litigation were both “challenging and exhilarating”. But after getting married and having children, she decided to take a break from legal practice and chose to make her second foray into the legal world as an in-house counsel.
“Being younger, I could handle a lot more of that stress. Private practice requires you to be absorbed in your work day and night, and I can’t afford that much time now,” she says.
Meller said life in-house is much more interesting. “I like the commercial decision-making process. I also like the variety; at any time of the day, a client can call, and it could be something familiar, or something totally out of the blue.” ALB
Essential criteria for choosing a law fi rm
Specifi c legal expertise
Turnaround time
Lawyers were asked to rate the importance of the criteria on a scale of 1 to 5 (‘essential’ – ‘totally irrelevant’). The above percentages are the combined portion of respondents that ranked these criteria as either 1 or 2.
Choosing a law fi rm: The key criteria Irrelevant criteria for choosing a law fi rm
The above percentages are the combined portion of respondents that ranked these as criteria 1 or 2 on a scale of 1 to 5 (‘essential’ – ‘totally irrelevant’), and are the least sought after criteria.
30%
31%36% 42%
98%
94%
88%
88%87%
Newsletters and seminars
International offi ce networks/connections
Size of fi rm/department
Regional offi ce networks and connections
General expertise and ability
Understanding of your business
Commerciality
Most in-house lawyers say they wouldn’t consider moving into private practice. Being closer to the heart of a business and giving commercial legal advice is proving satisfying
38
IN-HOUSE SURVEY ISSUE 5.4
In-house counsel mind their own business
IN-HOUSE SURVEY asian legal business ISSUE 8.4
ALB In-House 38
IN-HOUSE SURVEYwww.asianlegalonline.com
39
Gone are the days when in-house counsel played second fi ddle to management or relied on external counsel for the bulk of their legal advice. Today’s in-house teams are taking fi rm control of their legal risk, and are increasingly discerning in their choice of law fi rms
Gillian Meller is experiencing an in-house evolution. As general manager of legal at Hong Kong’s mass transit railway operator MTR Corporation, Meller presided over the group’s merger with fellow state-owned railway com-
pany KCRC last year. The melding of two legal teams has forced her to take a fresh look at what it means to be in-house.
“It’s a bit like the story of the blind men and the elephant,” Meller says. “Everyone can describe a little bit of the role, but it’s hard to see the whole picture properly.” But that is changing. Meller says the in-house function at MTR Corporation is fast becoming more holistic and strategic. “We aren’t just dealing with contractual is-sues as they arise, but trying to take a proactive role and adding value to the business as legal risk managers.”
In fact, Meller says this evolution of the department is now her key management brief.
“The fi rst thing is really defi ning what the role of the in-house team is, and the second is delivering on that,” Meller explains. “I have to prove we can add more value by knowing the business and providing sound commercial advice – not just legal solutions.”
Samantha Chia, Singapore-based head of legal and compliance for Nokia Siemens Networks, has also seen her in-house role shape-shift as a result of a merger. When Nokia and Siemens announced they would combine their mobile and fi xed line phone network equipment businesses in 2006, little did either group know that a very public corruption and bribery scandal was about to engulf Siemens in Germany, forcing management to place renewed atten-tion on a fast-growing area for in-house counsel – compliance.
Issues Survey
IN-HOUSE SURVEY ISSUE 5.4
40
“I didn’t know how wide-spread these issues were, as it’s something quite new for us,” Chia says.
However, discussions with in-house and compliance coun-sel at an anti-corruption sum-mit in Hong Kong this year revealed otherwise. “Anti-cor-ruption and compliance are a huge concern for many com-panies, and particularly those who do business in the US or have US parents, as they’re subject to the Foreign Corrupt Practices Act and Securities and/or the Exchange Com-mission (SEC) rules,” she says. Chia reveals that now her most pressing task is to appoint a compliance counsel.
The stories of these two leading in-house lawyers are revealing, and are echoed by their peers. The in-house function in Asia is fast becoming a more strategic, forward-thinking proposition, demanding that in-house general counsel become proactive managers of legal risk. Compliance issues is also a rapidly grow-ing area of the mix. However, rather than shying away from the change, lawyers are stepping up to the plate.
“As a result of the merger [MTR/KCRC] process, you realise you have a broader role – that of a trusted advisor,” Meller explains. “The thing that appeals to me about being in-house is being asked to produce legal judgments in this commercial context.”
Proving the value of in-house counselThe majority of in-house legal teams in the Asia-Pacifi c region are either stable (49%), or growing in numbers (40%), according to the results of the ALB In-House Issues Survey. Only a pre-cious few (11%) are actually contracting in the current business environment. Likewise, 58% of respondents say the proportion of legal work being done in-house is increasing, with only 14% saying they are increasingly outsourcing work.
Team growth can be attributed to the booming economies and growing amount of legal work that is taking place in the region.
However, there is another reason, say lawyers – companies are starting to see the value of in-house advice, which is the reason they are choosing to keep an increasing amount of legal work under their own roof.
“Having a department in-house, as opposed to farming work out to law fi rms, is more cost-effective,” Chia argues. “Having a department right there also means they can easily handle the whole gamut of company legal issues.”
Your in-house team is:
Your legal work is increasingly:
Your legal team sits:
In-house teams in Asia
Paramjit Dhillon, Total Sports Asia
How many in your in-house team?
58%28%
14%
49%
40%
17.6%
4%
63.6%5.7%
3.4%
1.7%
4%
67% 33%As a central teamWithin relevant
business units
Done in-house
Stable
11%Contracting
Growing
6–10
1–5
50+
26–50
21–25
16–20
11–15
No change
Outsourced
IN-HOUSE SURVEYwww.asianlegalonline.com
41
Your annual legal spend is:
Your annual legal spend is:Counting the cost
ALB IN-HOUSE SURVEY
The ALB In-House Survey 2008 is a poll
of the top general counsel and their
legal teams across the Asia-Pacifi c region.
Covering a variety of hot topics from external
legal panels and legal spend to what in-house
counsel are really demanding from their external
legal providers, the survey presents a detailed and
accurate picture of the in-house legal landscape in
2008. The results, tabulated and graphed on the
following pages, is the region’s most up-to-date
guide to the in-house lawyer’s mindset.
41%
17%
17%6%
5%
7%7%
US$10,000–99,999
US$100,000–249,999
US$250,000–499,999US$500,000–1m
US$1m–5mUS$5m–10m
US$10m +
33%
7%
60%Increasing
No change
Decreasing
Meller agrees, saying that companies are seeing the value law-yers can add to situations, and that legal spend targets defi ne what can be outsourced.
Paramjit Dhillon, vice president of legal and HR at sports mar-keting group Total Sports Asia in Malaysia, argues convenience is also a key factor. “They’re relying less and less on external lawyers because when they need you, you’re there,” she says. “We try and turn around documents in 24 hours, which is something you can’t get from external fi rms.”
The survey also found that, alongside the growth of in-house legal departments, the majority of in-house teams have increased legal budgets to play with, as their total legal spend increases. Though in-house counsel do not appear to be looking to law fi rms for advice quite as much, legal spend fi gures show the size of the pie is growing in Asia, and there is no doubt that law fi rms are benefi ting from this increased workfl ow.
What in-house lawyers wantExternal counsel can no lon-ger feel safe in simply provid-ing clients recitations of exist-ing law with no commercial overlay. In-house lawyers are increasingly demanding, and commerciality is their great-est concern. “While putting the commercial spin on things is our job, we don’t want exter-nal legal advice produced in a vacuum,” Meller says.
Gillian Meller, MTR Corporation
“The fi rst thing is really defi ning what the role of the in-house team is, and the second is delivering on that”
GILLIAN MELLER, MTR CORPORATION
Accurate fee estimates
Faster turnaround
Accessibility
Commerciality
28%
22%
19%
31%
How could law fi rms best improve their service?
IN-HOUSE SURVEY ISSUE 5.4
42
However, when asked how their external counsel could most improve their level of service, signifi cant portions of respondents also fell into each of the categories calling for increased acces-sibility, faster turnaround times and accurate fee estimates, showing in-house lawyers expect improvement across the board. “We look for good practical business-oriented advice – nothing too legalistic,” Chia from Nokia Siemens Networks says. “We’re also looking for fast turnaround times and value for money.”Providing a warning – or perhaps a glimmer of hope – for law
fi rms in Asia, Meller says in-house lawyers “are less loyal to fi rms as a whole than they used to be”. While she has inherited existing relationships with Deacons, Slaughter and May, Lovells and Simmons & Simmons, as well as Mayer Brown JSM from the KCRC business, she argues the case that “individuals are more important” than the fi rm as a whole. Chia agrees: “We have some established relationships with fi rms from our time as Nokia, but we’re always on the lookout for good law fi rms and lawyers – we believe in healthy competition.”The ALB China survey results cement this idea. The majority of
companies have a formal panel of external providers, with many in the 1–5 fi rm range. However, more and more are relying on a much broader talent pool of over 10 law fi rms. Most in-house counsel also review their panels regularly, giving newer players the opportunity to source work.Refl ecting the point that it is the individual lawyer that counts,
by far the most important criteria fi rms demand from their external counsel is specifi c legal expertise. A whopping 98% of in-house respondents to ALB China’s survey nominated specifi c legal expertise as essential when outsourcing their work. Dhillon from Total Sports Asia says the sports marketing group looks for specifi c expertise. “If we needed a sports lawyer, we would go to
Do you have a specifi c external legal panel?
How often do you review your panel?
Panel views
11%11% 14% 15%
6%
6%2%
1%
1%
%
25%
61%
39%
How many fi rms are on your legal panel?
61%
30%
7%
1%
1%
No regular review
Yes
No
Every year
Every two years
Every three years
Every four or more years
Companies are starting to see the value of in-house advice, which is the reason they are choosing to keep an increasing amount of legal work under their own roof
IN-HOUSE SURVEYwww.asianlegalonline.com
43
someone strong in their knowledge of sports law; if it was a labour dispute, we would go to a labour lawyer,” she says.
Private practice? Never again Most in-house lawyers say they would not consider moving into private practice. Though many have cut their teeth as associates, senior associates and even partners at private practice law fi rms, being closer to the heart of a business and giving commercial legal advice – with the added lifestyle advantages – is proving satisfying for most.
“I didn’t really enjoy private practice,” Chia admits. “I wanted to be close to the business, and to contribute to those internal business decisions as a legal practitioner. You don’t see that very much in private practice – you may have a client come to you with a problem or issue, and you send off an opinion, but you would have to be lucky to be intimately involved in a project from start to fi nish,” Chia says.
Dhillon says her eight years in private practice litigation were both “challenging and exhilarating”. But after getting married and having children, she decided to take a break from legal practice and chose to make her second foray into the legal world as an in-house counsel.
“Being younger, I could handle a lot more of that stress. Private practice requires you to be absorbed in your work day and night, and I can’t afford that much time now,” she says.
Meller said life in-house is much more interesting. “I like the commercial decision-making process. I also like the variety; at any time of the day, a client can call, and it could be something familiar, or something totally out of the blue.” ALB
Essential criteria for choosing a law fi rm
Specifi c legal expertise
Turnaround time
Lawyers were asked to rate the importance of the criteria on a scale of 1 to 5 (‘essential’ – ‘totally irrelevant’). The above percentages are the combined portion of respondents that ranked these criteria as either 1 or 2.
Choosing a law fi rm: The key criteria Irrelevant criteria for choosing a law fi rm
The above percentages are the combined portion of respondents that ranked these as criteria 1 or 2 on a scale of 1 to 5 (‘essential’ – ‘totally irrelevant’), and are the least sought after criteria.
30%
31%36% 42%
98%
94%
88%
88%87%
Newsletters and seminars
International offi ce networks/connections
Size of fi rm/department
Regional offi ce networks and connections
General expertise and ability
Understanding of your business
Commerciality
Most in-house lawyers say they wouldn’t consider moving into private practice. Being closer to the heart of a business and giving commercial legal advice is proving satisfying
44
OFFSHORE FIRMS ISSUE 5.4
MARCH 2008 IPO s INVOLVING CHINESE COMPANIES INCORPORATED IN CAYMAN ISLANDS
OffshoreThe China angleFollowing a bullish 2007, offshore law fi rms are keeping a close eye on China, with Hong Kong as ‘the gateway to China’ also set to profi t from the attention
Last year an ALB China report inves-tigated how the explosion of growth in Asia was changing the world or-der of offshore legal practice. Approx-
imately half of the companies incorporated in the BVI – by far the largest host of off-shore companies – are Asian-owned. Chi-na, of course, is leading the way and off-shore law fi rms are jostling to make sure they get their piece of the action.
Christopher Bickley, a partner based in the Hong Kong offi ce of Conyers Dill & Pearman, says that while his fi rm caters to any PRC client looking to use an off-
shore vehicle, the bulk of the fi rm’s PRC work comes from clients looking to es-tablish an investment holding company. “Such a company would be owned by the founders of a PRC operating group and private equity investors can make their in-vestments with a view to the holding com-pany eventually being listed,” he says.
“One of the signifi cant opportunities [for offshore fi rms] is providing Cayman and BVI advice to PRC companies raising capi-tal to grow their businesses with a view to listing overseas,” says Christine Chang of Maples and Calder. “So over the past year,
“There are a number of groups which switched offshore prior to the new regulations who are continuing to seek new investors”
CHRISTOPHER BICKLEY, CONYERS
44
OFFSHORE FIRMS ISSUE 5.4
MARCH 2008 IPO s INVOLVING CHINESE COMPANIES INCORPORATED IN CAYMAN ISLANDS
OffshoreThe China angleFollowing a bullish 2007, offshore law fi rms are keeping a close eye on China, with Hong Kong as ‘the gateway to China’ also set to profi t from the attention
Last year an ALB China report inves-tigated how the explosion of growth in Asia was changing the world or-der of offshore legal practice. Approx-
imately half of the companies incorporated in the BVI – by far the largest host of off-shore companies – are Asian-owned. Chi-na, of course, is leading the way and off-shore law fi rms are jostling to make sure they get their piece of the action.
Christopher Bickley, a partner based in the Hong Kong offi ce of Conyers Dill & Pearman, says that while his fi rm caters to any PRC client looking to use an off-
shore vehicle, the bulk of the fi rm’s PRC work comes from clients looking to es-tablish an investment holding company. “Such a company would be owned by the founders of a PRC operating group and private equity investors can make their in-vestments with a view to the holding com-pany eventually being listed,” he says.
“One of the signifi cant opportunities [for offshore fi rms] is providing Cayman and BVI advice to PRC companies raising capi-tal to grow their businesses with a view to listing overseas,” says Christine Chang of Maples and Calder. “So over the past year,
“There are a number of groups which switched offshore prior to the new regulations who are continuing to seek new investors”
CHRISTOPHER BICKLEY, CONYERS
46
OFFSHORE LAW FIRMS ISSUE 5.4
we’ve provided advice to a number of com-panies on their IPOs.”
Bickley says that there has been strong interest among Chinese groups in listing in Hong Kong and the US, using an off-shore company. “We have, however, re-cently seen more interest in other stock markets, particularly London’s AIM, the Tokyo Stock Exchange, the Korean Stock Exchange and KOSDAQ.”
2008 outlook2007 was a strong year for offshore law fi rms. “A lot of fi rms have had their best year ever,” says Michael Gagie of Harney Westwood & Riegels. Gagie nominates banking, structured fi nance, private equi-ty and joint venture work as the areas that have kept his fi rm particularly busy.
The picture so far for 2008 is less clear because of the credit crunch, the continu-ing impact of China imposing restrictions on inbound investment and the capac-ity for PRC companies to adopt offshore structures.
“This year has seen a bit of a slowdown as a result of the new regulations,” says Bickley. “However, there are a number of groups which switched offshore prior to the new regulations being put in place who are continuing to seek new investors.”
Christine Chang says that her fi rm is still busy: “We’re still experiencing numerous deals in various stages of the pipeline. As demand for our services from clients look-ing to invest into the PRC continues, we have been building up our legal teams to handle the fl ow of instructions.”
Michael Gagie says it is a little early to
make a call: “We had a relative-ly quiet Febru-ary, but that was probably due to the traditional-ly slower weeks before and after Chinese New
Year. But business has picked up again over recent weeks.” Gagie says that there is a sense of apprehension in the market about the rest of the year. “Transactions are still proceeding, but the pace of some of those transactions has slowed.” However, he is not expecting any immediate down-turn in foreign investment into China. “On the private equity side, you have a number of funds that have already raised money and now need to invest it, so I think we’ll continue to see plenty of investment and M&A activity in China.” He also notes that in a worsening economy a decline in new investment might be partly compensated by an increase in restructuring existing in-vestments and insolvency work.
Popular offshore jurisdictionsCayman Islands and BVI companies have been popular with foreign investors in-vesting into the PRC and into Chinese en-tities listed overseas, says Chang. “The at-tractions of Cayman and BVI as jurisdic-tions include a well-developed legal sys-tem based on English common law, tax neutrality, no exchange controls, a non-intrusive regulatory system and experi-enced professionals with in-depth knowl-edge of the international capital mar-kets,” she says. These professionals are often based in Hong Kong, a more conve-nient time zone.
And Hong Kong, the largest source of foreign investment into China, may well give the likes of Cayman and BVI a run for their money.
“Hong Kong is still very much the gate-way to China,” says Michael Gagie.
Gagie says that a factor contributing to Hong Kong’s attractiveness is the recent reform to PRC tax laws. “Hong Kong has a double taxation treaty with China and, as of January this year, a Hong Kong company receiving income from a China-based business will now pay a lower rate of withholding tax on that income than if the company was based in a country with-out a double taxation treaty with China.”
“Hong Kong has a double taxation treaty with China and, as of January, a Hong Kong company receiving income from a China-based business will pay a lower rate of withholding tax”
MICHAEL GAGIE, HARNEYS
“One of the signifi cant opportunities [for offshore fi rms] is providing Cayman and BVI advice to PRC companies raising capital to grow their businesses with a view to listing overseas”
CHRISTINE CHANG, MAPLES AND CALDER
Gagie says that this recent change has had, and is likely to continue to have, an impact on the use of offshore vehicles in some investment structures as none of the larger offshore jurisdictions have a double taxation treaty with China. ALB
48
australasian legal business ISSUE 5.10LIVING
A former London lawyer swapped word wars in the courtroom for actual fi st fi ghts, after her boyfriend introduced her to
boxing as a sport.Laura Saperstein, of Morrison Avenue, Tottenham, was a M&A
lawyer with Magic Circle law fi rm Freshfi elds, earning £75,000 a year, before she left law to train full-time at the London Boxing Academy in Tottenham.
That was three years ago – and since then, she has won all 10 of her amateur fi ghts along with the British lightweight amateur championship two years ago.
Surprisingly, the 36-year-old says that she does not miss the law, but admits that there are probably a few female lawyers that would consider her career move a crazy one. ALB
Freshfi elds lawyer bitten by the boxing bug
A Hollywood lawyer recently discovered that having a fi rm handshake is not all it’s cracked up to be.
After attending a court hearing for her husband, Kathy Brewer Rentas, a commercial litigation attorney for a law fi rm in Hollywood, simply asked to shake hands with Assistant US Attorney Jennifer Keene – a move she probably would not have made had she known her own strength.
According to reports, a court security offi cer present at the time said Brewer Rentas shook Keene’s hand so forcefully that the prosecutor’s arm was nearly ripped out of its socket.
The unfortunate lawyer spent a night in jail and then released on $100,000 bail. She was ordered to stay away from Keene and undergo a psychological evaluation to determine if counselling was necessary.
If convicted, Brewer Rentas faces up to a year in prison and could be penalised by the Florida Bar. ALB
Hurtful handshake lands lawyer in jail
www.asianlegalonline.com Sign offwww.asianlegalonline.com Sign offSign offM&A fi nancing leaderboard
Y/E 2007
1
4
3
9
10
8
2
7
6
5
22
21
12
14
201
16
35
19
24
–
Q1 2008
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Company name Value (US$m)
No. of deals
UBS 222,658 14
Citigroup 221,382 13
Morgan Stanley 218,883 7
Credit Suisse 218,185 6
Merrill Lynch 216,681 7
Lazard 215,815 4
Macquarie Group 214,688 9
JPMorgan 214,361 7
Goldman Sachs 213,998 7
Deutsche Bank 212,134 8
BNP Paribas 211,871 4
Rothschild 211,273 7
HSBC Bank 210,938 2
Gresham Advisory Partners 210,932 2
SG 210,868 1
Lehman Brothers 18,658 6
China International Capital 12,740 1
PricewaterhouseCoopers Corp Fin 6,486 6
Ernst & Young 5,054 8
Dalal and Shah 4,756 1
LEAGUE TABLE OF FINANCIAL ADVISORS TO ASIA-PACIFIC (EX JAPAN) M&A: VALUE
Source: Mergermarket
Diana inquest to bring barristers rich rewards
Barristers fortunate enough to be involved in the infamous ‘Diana inquest’ will not only score themselves some free press,
but are also expected to end up with a cool £5m by the end of the trial, according to recent reports.
The total cost of the case is reportedly set to top £10m, with Harrods owner Mohamed Al Fayed allegedly spending more than £3m on barrister fees for the inquest alone and then some, on barristers representing his Paris hotel The Ritz.
Both teams are said to command a hefty hourly rate of £575 for their work, and as such will be entitled to a sum of more than £675,000 for the duration.
On the government end, lead counsel to the coroner Ian Burnett QC of 1 Temple Gardens, charges an hourly rate of £285, so will fi nish the trial £335,000 richer.
Richard Horwell QC of Cloth Fair Chambers, representing the Metropolitan Police, and Robin Tam QC of 1 Temple Gardens, for MI6 and the Foreign Offi ce, each command £250 an hour and can expect to earn £294,000 for the job. ALB
It seems the chief at Clifford Chance has recently adopted a fairly frugal state of mind. According to reports, Jeremy Sandelson, managing partner
of the fi rm’s London base, recently sent a fi rm-wide e-mail around the offi ce warning staff that taxi costs were spiralling out of control.
The fi rm’s current taxi policy says that taxis can only be takenif working legitimately on fi rm business after 9pmin winter and 10pm in summer, and the costsshould never exceed £60.
Sandelson allegedly said that taxis areoften kept waiting outside the officefor long periods with the metersrunning.
To try to combat the prob-lem, the fi rm has decided tonow monitor the use of taxisand re-examine its taxi ex-penses policy if costs do notdecrease. ALB
Hey big spender
Spanish fi rm Garrigues has become the fi rst national fi rm to break through the quarter billion euro mark, ending this
fi nancial year 16% up on last year with revenues of €259m. The fi rm also recently added 24 associates to its partnership,
with its Madrid offi ce also receiving nine new partners. ALB
Garrigues fi rm fi gures lead the way
ISSUE 5.4
48
australasian legal business ISSUE 5.10LIVING
A former London lawyer swapped word wars in the courtroom for actual fi st fi ghts, after her boyfriend introduced her to
boxing as a sport.Laura Saperstein, of Morrison Avenue, Tottenham, was a M&A
lawyer with Magic Circle law fi rm Freshfi elds, earning £75,000 a year, before she left law to train full-time at the London Boxing Academy in Tottenham.
That was three years ago – and since then, she has won all 10 of her amateur fi ghts along with the British lightweight amateur championship two years ago.
Surprisingly, the 36-year-old says that she does not miss the law, but admits that there are probably a few female lawyers that would consider her career move a crazy one. ALB
Freshfi elds lawyer bitten by the boxing bug
A Hollywood lawyer recently discovered that having a fi rm handshake is not all it’s cracked up to be.
After attending a court hearing for her husband, Kathy Brewer Rentas, a commercial litigation attorney for a law fi rm in Hollywood, simply asked to shake hands with Assistant US Attorney Jennifer Keene – a move she probably would not have made had she known her own strength.
According to reports, a court security offi cer present at the time said Brewer Rentas shook Keene’s hand so forcefully that the prosecutor’s arm was nearly ripped out of its socket.
The unfortunate lawyer spent a night in jail and then released on $100,000 bail. She was ordered to stay away from Keene and undergo a psychological evaluation to determine if counselling was necessary.
If convicted, Brewer Rentas faces up to a year in prison and could be penalised by the Florida Bar. ALB
Hurtful handshake lands lawyer in jail
www.asianlegalonline.com Sign offwww.asianlegalonline.com Sign offSign offM&A fi nancing leaderboard
Y/E 2007
1
4
3
9
10
8
2
7
6
5
22
21
12
14
201
16
35
19
24
–
Q1 2008
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Company name Value (US$m)
No. of deals
UBS 222,658 14
Citigroup 221,382 13
Morgan Stanley 218,883 7
Credit Suisse 218,185 6
Merrill Lynch 216,681 7
Lazard 215,815 4
Macquarie Group 214,688 9
JPMorgan 214,361 7
Goldman Sachs 213,998 7
Deutsche Bank 212,134 8
BNP Paribas 211,871 4
Rothschild 211,273 7
HSBC Bank 210,938 2
Gresham Advisory Partners 210,932 2
SG 210,868 1
Lehman Brothers 18,658 6
China International Capital 12,740 1
PricewaterhouseCoopers Corp Fin 6,486 6
Ernst & Young 5,054 8
Dalal and Shah 4,756 1
LEAGUE TABLE OF FINANCIAL ADVISORS TO ASIA-PACIFIC (EX JAPAN) M&A: VALUE
Source: Mergermarket
Diana inquest to bring barristers rich rewards
Barristers fortunate enough to be involved in the infamous ‘Diana inquest’ will not only score themselves some free press,
but are also expected to end up with a cool £5m by the end of the trial, according to recent reports.
The total cost of the case is reportedly set to top £10m, with Harrods owner Mohamed Al Fayed allegedly spending more than £3m on barrister fees for the inquest alone and then some, on barristers representing his Paris hotel The Ritz.
Both teams are said to command a hefty hourly rate of £575 for their work, and as such will be entitled to a sum of more than £675,000 for the duration.
On the government end, lead counsel to the coroner Ian Burnett QC of 1 Temple Gardens, charges an hourly rate of £285, so will fi nish the trial £335,000 richer.
Richard Horwell QC of Cloth Fair Chambers, representing the Metropolitan Police, and Robin Tam QC of 1 Temple Gardens, for MI6 and the Foreign Offi ce, each command £250 an hour and can expect to earn £294,000 for the job. ALB
It seems the chief at Clifford Chance has recently adopted a fairly frugal state of mind. According to reports, Jeremy Sandelson, managing partner
of the fi rm’s London base, recently sent a fi rm-wide e-mail around the offi ce warning staff that taxi costs were spiralling out of control.
The fi rm’s current taxi policy says that taxis can only be taken if working legitimately on fi rm business after 9pm in winter and 10pm in summer, and the costs should never exceed £60.
Sandelson allegedly said that taxis are often kept waiting outside the office for long periods with the meters running.
To try to combat the prob-lem, the fi rm has decided to now monitor the use of taxis and re-examine its taxi ex-penses policy if costs do not decrease. ALB
Hey big spender
Spanish fi rm Garrigues has become the fi rst national fi rm to break through the quarter billion euro mark, ending this
fi nancial year 16% up on last year with revenues of €259m. The fi rm also recently added 24 associates to its partnership,
with its Madrid offi ce also receiving nine new partners. ALB