Integrity Legal

The tragic situation in Japan (a country recently plagued by Earthquakes, Tsunamis, Volcanoes, and finally Nuclear Meltdown)  is apparently causing other nations in East Asia and Southeast Asia to rethink their options with regard to the proliferation of nuclear power plants. A recent posting on the website AsiaOne.com discussed some of these issues in some detail. To quote directly from the website AsiaOne.com:

Singapore – Japan’s nuclear crisis is likely to prompt Southeast Asian states to look more carefully at their plans to tap atomic energy for power generation, the head of the regional bloc said Monday.

Association of Southeast Asian Nations (ASEAN) secretary-general Surin Pitsuwan said Japan’s struggle to prevent a reactor meltdown at the Fukushima nuclear power plant will have a “psychological” impact on some ASEAN members.

“They will continue to explore, but I think the sense of urgency will certainly be contained a little bit,” Surin told reporters on the sidelines of a regional economic conference in Singapore.

The administration of this blog highly encourages readers to click on the links above to read more of this article.

Clearly, a disaster of the magnitude of the events unfolding in Japan can have a tremendous “psychological” effect around the world, but what is interesting about the above quotation is the fact that the Association of Southeast Asian Nations (ASEAN), a regional organizations that is becoming increasingly important in geopolitical matters, seems to be uniformly ambivalent towards nuclear power as of the time of this writing. Meanwhile, the Kingdom of Thailand, an important member of the Association of Southeast Asian Nations (ASEAN), is rethinking its position on the issue of nuclear power. To quote directly from Eco-Business.com:

Thailand has frozen its plans to build its own nuclear power plants in the wake of the ongoing nuclear crisis in Japan following a series of meltdowns at the quake-hit power complex in Fukushima.

Thai Deputy Prime Minister Suthep Thaugsuban announced yesterday that the government would indefinitely halt all plans to build nuclear facilities in the Kingdom.

Again readers are highly encouraged to click on the links above to read more from this posting.

In this blogger’s personal opinion, this decision to “freeze” plans for a Thai nuclear plant is both prudent and necessary. The decision is prudent because it provides the Thai government and people the opportunity to watch the events in Japan unfold. This will provide the Thais with the opportunity to see the extent of the problem in Japan and this opportunity will allow Thai authorities to take a firsthand look at the possible dangers inherent in constructing and maintaining a nuclear facility. Such measures are necessary because failure to be prudent could be costly later, as evidenced by the situation in Japan. This nuclear disaster in Japan is obviously no one’s “fault,” but perhaps failure to take into consideration the fact that Japan, and the reactors present therein, is situated upon one of the most tectonically active locations on Earth may help to explain the nuclear disaster. At this time, fixing the blame for this tragedy should not be at the forefront of people’s minds as the brave Citizens of Japan struggle to overcome this situation, but evaluating the proliferation of nuclear facilities in the ASEAN with a critical eye may help avoid such tragedies in the Southeast Asia of the future.

As economic activity in the ASEAN region, China, Thailand, Laos and Cambodia expands it stands to reason that energy needs will remain an acute concern for the business community as well as governmental authorities, but such considerations would appear to be being weighed in light of the recent events in Japan, as well they should be.

For related information please see: business in China.

Tags: ASEAN, ASEAN Atomic Energy, ASEAN Business, Asian Business, ASsociation of Southeast ASian Nations, Atomic Energy in Asia, Burma Business, Cambodia Business, China Business, Fukushima, Japan Crisis, Japan Nuclear Meltdown, Laos Business, Myanmar Business, Nuclear Disaster, Nuclear Energy in Asia, Surin Pitsuwan, Suthep Thaugsuban, Thailand Business
Posted in ASEAN Business, Cambodia Business, Laos Business, Myanmar (Burma) Business, Thailand Business | No Comments »

It recently came to this blogger’s attention via Mr. Paul Huang at the Law Firm of Cenlaw in Shanghai, China that Chinese government officials have promulgated new rules for reviewing mergers and acquisitions in a national security context. To quote Mr. Paul Huang directly:

The State Council of China has laid out long-awaited rules and procedures for national security reviews of foreign mergers and acquisitions. The new acquisition rules will commence operation in March of 2011. Under the rules, the new National Security Review Committee led by China’s National Development and Reform Commission and the Ministry of Commerce that already review mergers under the Chinese antitrust rules will review mergers and acquisitions targeting key companies in the defense, agriculture, energy, resources, infrastructure, transportation and equipment-manufacturing and technology industries. It will apply a broad definition of national security, assessing the impact of deals on economic stability, social order and China’s ability to research and develop key technologies for national defense.

The administration of this blog encourages readers to check out the publications section of the Cenlaw website as it is filled with relevant and detailed information regarding the legal issues which can arise in the context of Chinese business.

As more international investors seek business opportunities in Asia, it will become increasingly necessary for such investors to comply with applicable local laws and regulations. The legal systems in Asian jurisdictions can be very similar or extremely different from Western legal systems. For example, the SAR of Hong Kong, China has a legal system which has its roots in the common law tradition. This state of affairs could be attributed to the fact that Hong Kong was once a Crown Colony of the United Kingdom. Meanwhile, so-called “Mainland China” has a legal tradition that is quite unlike any other jurisdiction in the world. At the same time, the Kingdom of Thailand in Southeast Asia has a legal system which draws upon many different legal traditions around the world while maintaining a uniquely Thai complexion.

Many Western stock exchanges have announced various plans to consolidate through multi-jurisdictional merger or acquisition. This state of affairs will likely raise increasingly complex legal issues as business transactions increasingly occur in a transnational context. As Southeast Asia sees the creation of new stock exchanges in countries such as Laos and Cambodia. It appears increasingly likely that the legal systems in those countries will be of ever increasing interest to international investors seeking information about doing business in those jurisdictions. It will be interesting to follow these developments as business in China and the countries which comprise the Association of Southeast Asian Nations (ASEAN) become increasingly dominant in a global business context.

For related information please see: Laos Stock Exchange.

Tags: ASEAN legal, ASEAN M&A, Asian Stock Exchange, ASsociation of Southeast ASian Nations, Business in ASEAN, Business in Asia, Business in Cambodia, business in China, Business in Laos, Business in Thailand, Cenlaw, China Acquisition, China legal, China M&A, China Merger, M & A, Mergers and Acquisitions, Paul Huang, Thailand Acquisition, Thailand legal, Thailand M&A, Thailand Merger
Posted in Cambodia Business, China Business, Laos Business, Thailand Business | No Comments »

In a peculiar series of events, it would appear that some of the various United States are pondering the re-introduction of precious metals as a means and method of paying State government fees and other fees related to matters arising in an intrastate context. It would appear as though the Commonwealth of Virginia is taking the lead in this matter by proposing measures which could eventually lead to the State government adopting precious metals as the means of payment for State government services.

To quote directly from Jason Hamlin on the website marketoracle.co.uk:

In what could be the financial shot heard around the world, the state of Virginia is considering the establishment of a joint subcommittee to study whether the Commonwealth should adopt a currency such as gold or silver to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System.

This blogger found the proposed Virginia legislation using the Virginia.gov website. In order to understand where the States derive their authority to adopt precious metals for purposes of intrastate governmental fees it may be best to quote language from the proposed legislation directly from the Virginia.gov website:

WHEREAS, the Supreme Court of the United States in Lane County v. Oregon, 74 U.S. (7 Wallace) 71, 76-78 (1869), and Hagar v. Reclamation District No. 108, 111 U.S. 701, 706 (1884), has ruled that the States may adopt whatever currency they desire for the purposes of performing their sovereign governmental functions, even to the extent of adopting gold and silver coin for those purposes while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated “legal tender”;

Those who understand the United States Constitution will no doubt be aware of the fact that the power to regulate intrastate affairs matters is not derived from the Federal government (nor the Supreme Court), but from the inherent sovereignty of the States themselves. The Supreme Court’s opinion on the matter is used to provide laypeople with insight regarding the Supreme Court’s position on this issue. As of yet, this legislation is still pending. However, those interested in this matter are well advised to check out the links above to find out more about the actual provisions of this legislation and the ramifications thereof.

It would appear that Virginia is not the only American State to ponder the adoption of precious metals as an alternative payment method for intrastate matters. Recently it came to this blogger’s attention that the state of Utah has seen similar proposed legislation. To quote directly from an article by Alex Newman on the website thenewamerican.com:

Under the proposed legislation, introduced late last year for the upcoming legislative session, the state government would be authorized to collect and return taxes and fees in precious metals. Additionally, Utah’s government could use gold and silver in connection with any intrastate transaction. But of course, it would be entirely up to citizens whether they preferred to use precious-metals coins or U.S. dollars…

In 2009, Federal legislation (H.R. 4248: Free Competition in Currency Act of 2009) was introduced by Representative Ron Paul which would have provided more currency options to those in the jurisdiction of the United States of America. However, this legislation failed to be enacted. To quote directly from govtrack.us:

This bill never became law. This bill was proposed in a previous session of Congress. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that haven’t passed are cleared from the books. Members often reintroduce bills that did not come up for debate under a new number in the next session.

As the United States of America is composed of 50 sovereign States as well as the Federal government the Federal legislature would be required to pass legislation regarding currency usage for matters falling under the Federal bailiwick, but State matters are dealt with exclusively by State legislatures. Clearly, the ultimate outcome for State legislation such as that noted above has yet to be determined. However, it would appear that there is more support for adopting precious metals for payment of government fees at the State level compared to the Federal level. That said, the future of both issues is uncertain.

Should legislation similar to that noted above be adopted by one or more of the United States, then this could have tremendous implications for the political-economies that compose the Association of Southeast Asian Nations (ASEAN) or are geographically located within Greater Asia. Companies from Asia doing business in the USA may need to make some currency adjustments should business interests compel presence in a State which has adopted specie or precious metals as a method of paying State government costs and fees.

For related information please see: Stock Exchange Mergers

Tags: adoption of precious metals, currency, Federal Reserve, Federal Reserve Bank, Federal Reserve Notes, Fiat Currency, Free Competition in Currency Act of 2009, Gold, Gold bullion, Gold Standard, H.R. 4248, Hagar v. Reclamation District No. 108, HOUSE JOINT RESOLUTION NO. 557, interstate commerce, intrastate commerce, intrastate currency legislation, Lane County v. Oregon, Sound Money, specie, State currency legislation, States' Rights, The Sound Money Act, The Utah Specie Tender Act of 2011, Utah, Virginia
Posted in American Business, Cambodia Business, China Business, Laos Business, States' Rights, Thailand Business, US Constitution | No Comments »

It recently came to this blogger’s attention that many of the Stock Exchanges around the world are in open discussion regarding possible merger. It would appear that many of the companies which operate various bourses around the globe are keen to exploit the efficiencies and opportunities which could arise as a result of multi-jurisdictional trading. This is even true in the case of the United States of America as the New York Stock Exchange (NYSE) could be merged with an exchange in Frankfurt, Germany. The official website of America’s National Public Radio has more information regarding this issue. To quote directly from NPR.org:

The company that operates the New York Stock Exchange could soon be acquired by a European company in a deal that could be announced as soon as next week.

NYSE Euronext, the company that owns the New York Stock Exchange and stock and derivatives markets throughout Europe, has confirmed it’s in advanced talks with Deutsche Boerse, which owns the Frankfurt Stock Exchange. The deal would create the world’s largest financial exchange, with headquarters in both Europe and the U.S.

Those reading this blog are encouraged to go to the posting noted above to read the full story.

It should be noted that the United States is not the only country whose stock market is contemplating merger with that of a foreign jurisdiction. It recently was announced that the Canadian Stock Exchange (TMX) and the London Stock Exchange (LSE) are in talks about entering deals to merge those two securities exchange platforms. The Financial Times has been reporting on this state of affairs over the past several days. It would appear that the initial enthusiasm that erupted from the announcement that the Canadian and London Exchanges may be merging was overshadowed by the more recent announcement regarding the NYSE and the German Bourse. To quote directly from the official website of the Financial Times, FT.com:

The limelight may have rapidly moved to the US and Germany but those behind the merger of the London Stock Exchange and TMX, operator of Canada’s largest bourse, insist it was the right deal to do…

The deal, which will create a company worth more than $5bn (£3.1bn), is intended to create the world’s leading cash equities platform for mining companies, as countries including Brazil, China and Mongolia look to exploit their natural resources.

Those seeking further information on this topic are well advised to visit the Financial Times posting noted above.

This blogger was interested when reading the above cited story because the country of Mongolia would appear interested in having their business interests represented on a British-Canadian exchange rather than an exchange in Asia. Mongolia’s desire to acquire investment capital may have been “trumped” by worries that listing on an exchange in Asia would run counter to the country’s strategic long term geopolitical interests.

It should be noted that the American, Canadian, British, and German stock exchanges are not the only ones which have been discussing possible merger. In fact, the Australian Securities Exchange and the Singapore Stock Exchange have been working out the details of a merger for months. The announcements from the North American, British, and European exchanges regarding possible merger may be a catalyst for the Australian and Singaporean exchanges to conclude their merger discussions more quickly. To quote directly from a posting on the Sydney Morning Herald‘s official website SMH.com.au:

A RUSH of merger proposals among the world’s biggest stock exchanges over the past two days is expected to increase pressure on Canberra to approve Singapore Stock Exchange’s $8.4 billion move on the Australian Securities Exchange.

But with the trans-Atlantic deals designed with an eye to overcoming political concerns, Singapore could be forced to restructure its proposal to give the ASX a greater role in any tie-up.

The administration of this web log encourages readers to visit the posting cited above in order to get the full details of the proposed merger between the Singapore Stock Exchange and the Australia Securities Exchange.

There have been a great many announcements regarding stock exchanges in Southeast Asia. Recently, it was announced that the small Southeast Asian nation of Laos was opening a stock exchange to trade Lao securities. Apparently, the Laos Stock Exchange has been operating smoothly since its opening. Meanwhile, it has also been noted that the Southeast Asian nation of Myanmar (also referred to by its former name, Burma) is contemplating the establishment of a Burmese Stock Exchange. However, it remains to be seen whether or not this idea will actually come to fruition as Myanmar remains the subject of sanctions and there are many who believe that the country must deal with humanitarian issues prior to undertaking economic programs such as the establishment of a Burmese Bourse. In fact, there are some who argue that so long as Western sanctions remain imposed against Burma that it will be unlikely that an exchange will be opened in that country. That said, anything could happen and the actual establishment of a Burmese stock exchange remains to be seen.

More concrete plans for the opening of a stock exchange appear to be taking shape in the Southeast Asian nation of Cambodia as further steps have been taken toward the proposed opening of a Cambodian Securities Exchange in mid-2011. The following was quoted directly from the official website of the Phnom Penh Post, PhnomPenhPost.com:

PHNOM Penh Securities opened its doors yesterday, becoming the third of seven approved underwriters to open ahead of the planned launch of the Cambodian stock exchange later this year.

Chairman of the firm, Kay Vat, said a key focus of the business would be guiding foreign firms planning to invest in the Kingdom’s listed companies.

Those wishing to learn more about the proposed Cambodian Stock Exchange are well advised to visit the Phnom Penh Post website noted above.

In other postings on this blog it was noted that the Cambodian Exchange is set to commence trading on or around June of this year. At present, there does not appear to be any talk of a merger between the Thai Stock Exchange (often referred to as the SET) and that of any other nation. Furthermore, Chinese officials do not seem particularly predisposed to any type of multi-jurisdictional merger between those exchanges operating in China and those operating in other countries. However, those following this issue should resist the urge to completely rule out such a possibility, but it seems unlikely in the near future as Thai and Chinese officials do not seem poised to make such an announcement.

Stock Exchanges remain an effective tool for countries wishing to attract foreign capital as many foreign investors enjoy the transparency and greater efficiency that comes from trading on an open exchange. That said, the impact from the  “ripple effect” that may result from the merger of the Canadian, American, British, and German Exchanges remain to be seen as the effect of such mergers could reverberate in the economies that make up the Association of Southeast Asian Nations (ASEAN).

American individuals or American companies conducting business abroad should note the fact that all Americans (both natural persons and corporate entities) are required to adhere to the provisions of the United States Foreign Corrupt Practices Act (FCPA). The Foreign Corrupt Practices Act (FCPA) is a piece of legislation which attempts to regulate the activity of Americans abroad in a business context. The act is designed to decrease the incidents of graft and corruption perpetrated by Americans doing business abroad. American businesses and individuals investing or doing business abroad may find the assistance of an attorney useful when attempting to comply with the FCPA in an international context.

For related information please see: Thailand Company or US Company Registration.

Tags: ASEAN, ASsociation of Southeast ASian Nations, ASX, Australian Securities Exchange, Bourse News, Cambodian stock exchange, Canadian Stock Exchange, Deutsche Boerse, German Stock Exchange, Global Bourse News, Global Stock Exchange News, London Stock Exchnage, LSE, New York Stock Exchange, NYSE Euronext, SGX, Singapore Stock Exchange, Stock Exchnage News, TMX, World Bourse News, World Stock Exchange News
Posted in Cambodia Business, China Business, Foreign Corrupt Practices Act (FCPA), Laos Business, Myanmar (Burma) Business, Thailand Business, US Business | 1 Comment »

The administration of this blog recently noticed an article from the Reuters news agency in which the Chief Executive Officer of General Electric was commenting upon the economic situation in China and how this impacts the relationship between the United States of America and Peoples’ Republic of China in both the economic and political spheres. To quote directly from the Reuters News Service:

(Reuters) – For Jeff Immelt, the CEO of General Electric (GE.N), the 130 year-old American industrial behemoth, the financial crisis marked the end of the age of America’s economic dominance.

This blogger has noticed that there seems to be a level of pessimism regarding the American economy. Although it is currently going through economic turbulence, and has been for a while, the US economy, in this blogger’s opinion; remains one of best countries in the world for trade and economic activity. Those doing business in the USA may enjoy the benefits that come from the American financial, economic, and physical infrastructure. Hopefully, the optimism for which America has, in the past, been noted for will return once the economy returns to an “even keel”. Reuters continues:

But Mr. Immelt said the future will be different. For the next 25 years, he said, the American consumer “is not going to be the engine of global growth. It is going to be the billion people joining the middle class in Asia, it is going to be what the resource-rich countries do with their newfound wealth of high oil prices. That’s the game.”

A lot of that game will be played in China. At a moment when it is compulsory on the American right to pay homage to the exceptionalism of the United States, Mr. Immelt, a lifelong Republican, is matter-of-fact about China’s inevitable rise.

The interesting piece of information that this blogger noted in the aforementioned article was the fact that the G.E. CEO took notice of the fact that the middle class is growing rapidly in Asia. The thought of an Asian middle class numbering 1 billion or more is truly staggering when one takes into account the economic impact of such growth. As Asians in general become more affluent the side effects will likely be increased trade and economic activity as these newly minted members of the middle class use their new found wealth to make purchases of property, goods, and services (in Asia, the EU, UK, and the United States). The most poignant line of this Reuters article, in this blogger’s opinion was:

“It is going to be the biggest economy in the world,” Mr. Immelt said of China. “The only question is when.”

There is little doubt that China has an incredible capacity for growth and those looking international investment or business opportunities are well advised to research the Chinese market. That said, China does not represent the only country in Asia which has economic opportunities that are becoming more readily available to investors and entrepreneurs due to globalization. The Kingdom of Thailand, a member of the Association of Southeast Asian Nations (ASEAN), has investment opportunities in the form of Thai Property, Thai Real Estate, and Thai businesses. Furthermore, for Americans conducting business in Thailand can prove profitable especially since the US-Thai Treaty of Amity allows Americans to own virtually 100% of a Thai Company with Amity Treaty certification (sometimes referred to as an Amity Company).

Meanwhile, the landlocked country of Laos recently opened a Lao Securities Exchange in an effort to raise capital through equity investment. The Kingdom of Cambodia recently announced that a Cambodian Stock Exchange is to be unveiled in mid-2011 while recent reports have noted that Burmese officials hope to be in the process of creating a Myanmar Stock Exchange as well. Such developments remain to be fully realized, but such examples clearly indicate that Mainland China is not the only “game in town” when it comes to investment opportunities and economic growth in Asia.

For related information please see: US Company Registration.

Tags: American Amity Treaty, American Amity Treaty Thailand, Amity Company, Amity Treaty Company, Burma Stock Exchange, Cambodia Business, Cambodia Securities Exchange, Cambodia Stock Exchange, China Business, China Economic Growth, G.E. CEO, General Electric, Jeff Immelt, Lao Securities Exchange, Lao Stock Exchange, Laos Business, Myanmar Securities Exchange, Myanmar Stock Exchange, Thai Company, Thailand Business, Thailand company, US Amity Treaty Thailand, US-Thai Treaty of Amity
Posted in Amity Treaty, Cambodia Business, China Business, Laos Business, Myanmar (Burma) Business, News, Opinion, Thailand Business, Thailand company, Thailand Property, Thailand Real Estate, US Business, US Company Registration | 1 Comment »

Those who read this blog may have taken notice of the fact that the country of Laos in Southeast Asia recently announced the opening of a Lao securities exchange in the capital city of Vientiane. It recently came to this blogger’s attention that the Kingdom of Cambodia also plans to unveil their own securities exchange in 2011. To quote directly from a posting on DAP-news.com:

“Now we are our stock exchange in the process of establishing and developing Cambodian securities exchange which is going to be implemented in the middle of 2011, H.E Dr. Hean Sahip, deputy secretary general of ministry said in his speech during the workshop on IT for securities exchange in Phnom Penh.

The relatively small Southeast Asian Kingdom has been working on opening a securities exchange for some time. Now it would appear as though all of this effort may soon bear fruit, to quote DAP-news.com further:

“I would like to inform you that that to reach our objective of inaugural preparation of Cambodia securities exchange in the forth coming middle 2011, Cambodia securities exchange will start their operation soon  Canadia Tower, level 25”He added…

Some governmental agencies such as Autonomous zone of Sihanouk port, Electricity du Combodge, autonomous water supply authority of Phnom Penh, Telecom Cambodia will likely be listed in the stock exchange.Other dozen of private baking and companies will join the stock.

In the case of Laos, the opening of a stock exchange marks a significant step toward acquisition of investment capital as securities exchanges are often utilized in an effort to raise capital for companies wishing to expand. It would appear that the Kingdom of Cambodia offers substantial business opportunities to would-be investors of foreign origin. Some examples of the business opportunities in Cambodia are succinctly summed up on the BuyUSA.gov website:

Cambodia offers potential investment opportunities in tourism infrastructure and resorts; education; architecture, construction, and engineering services; household goods and appliances; agribusiness and food processing; used cars and automotive parts; power generation equipment; fast food and beverage franchises; pharmaceuticals, medical supplies, and medical equipment; and banking.

Clearly, there are business opportunities in the Kingdom of Cambodia, but those looking to conduct business in the Southeast Asian Kingdom may be prudent to conduct research or possibly retain the services of an attorney to conduct due diligence into proposed investments prior to making irrevocable business decisions. The same could easily be said for those looking to conduct business in the Kingdom of Thailand, Laos, or any jurisdiction with which a prospective investor is not familiar as research into the business and legal issues associated with a new undertaking in an unfamiliar jurisdiction can help ensure that risks are avoided which stem from unforeseen complications.

For related information please see: US Company Registration or US Visa Cambodia.

Tags: agribusiness Cambodia, banking Cambodia, Business in Cambodia, Cambodia Bourse, Cambodia Securities Exchange, Cambodia Stock Exchange, Cambodian Business, Dr. Hean Sahip, Kingdom of Cambodia, Kingdom of Thailand, Laos Bourse, Laos Securities Exchange, Laos Stock Exchange, Telecom Cambodia
Posted in Cambodia Business | No Comments »