One area of law that has received enormous attention in the international business community the past several years is the Foreign Corrupt Practices Act. The sheer amount of FCPA material out there is staggering. Just Google "FCPA" and you'll see what I mean (over 1,200,000 results generated). For anyone trying to keep up with the latest FCPA developments, it can all … [Read more...]
Switzerland Passes Tough Executive Pay Rules.
With all the talk about executive pay here at home, it’s interesting to note that Switzerland just passed a set of tough executive pay rules. The new rules allow shareholders at Swiss-listed companies a binding vote each year on the total compensation of boards of directors and senior management, as well as a total ban on "golden parachutes" and executives being paid … [Read more...]
International Carbon Exchange Markets. A Long Way to Go.
I’m on my flight back from Washington D.C., where I spent the last two days visiting with the White House and with members of Congress. The reason for my visit was to discuss the potential for an international carbon exchange market. It’s a hotly contested issue (so to speak) that has generated a great deal of controversy in the U.S. The concept of an international carbon … [Read more...]
International Licensing: An Alternative to Forming a Foreign Corporation.
I received some feed back in reference to yesterday's post, The 5 Key Factors You Must Consider When Establishing a Foreign Corporation. It seems I left some readers with the impression that forming a foreign corporation was not worth the risk given all the legal issues that must be addressed. While I did not intend to scare anybody who is considering establishing a … [Read more...]
The 5 Key Factors You Must Consider When Establishing a Foreign Corporation.
The other day I received a call from someone looking to form a corporation in Brazil. This person was shocked to learn that Brazil is among the most difficult countries in the world in which to incorporate a business. In fact, according to the World Bank’s annual Doing Business Report, Brazil was ranked no. 121 in ease of starting a business. … [Read more...]
Sovereign Debt Litigation on the Rise.
On Wednesday, the United States Court of Appeals for the Second Circuit will hear argument in a sovereign debt lawsuit that could have a major impact on world debt markets. The case centers on a group of investors who sued Argentina seeking payment for $1.3 billion relating to bonds that the country defaulted on in 2001. While the court has already sided with investors on … [Read more...]
Individual Liability for Foreign Subsidiary Misconduct. The Logical Next Step.
Yesterday's post centered on how important it is for U.S. companies to keep tabs on their foreign subsidiaries. Well, the Conglomerate blog has an excellent post on the increase of foreign subsidiaries that have entered guilty pleas with the U.S. government for misconduct that took place after the financial crisis. What's interesting about the rise in foreign subsidiaries … [Read more...]
Hey U.S. Corporations–Don't Neglect Your Foreign Subsidiaries!
I recently received an email from a board member of a corporation concerned that one of the company’s foreign subsidiaries was having compliance issues. I immediately interrupted and asked if there were any local bodies on the ground at the company’s foreign subsidiary. I wasn't exactly surprised to learn that there were not. In fact, no one from the U.S. office had visited … [Read more...]
The Cayman Islands: Paradise for Foreign Workers. Not So Much for Tax Dodgers.
There's been a sharp rise in the number of foreign workers in the Cayman Islands. This according to a recent report from Justin Harper of Reuters. Despite increased taxes, the number of foreign workers in the island paradise has gone from 19,927 at the end of 2011 to nearly 21,000 by December 2012. The increase is largely the result of less stringent immigration laws that now … [Read more...]
The U.S. Should Focus on Globalizing Domestic Small Businesses.
In the past few weeks I’ve worked with a number of small business clients looking to go international. In what I perceive as a definite sign of a strengthening economy, the increase in small businesses looking to capitalize on international business opportunities has skyrocketed in the past six months. Increasingly, these international business enterprises are getting … [Read more...]