On 17 May 2018, Zhong Lun Partner Sun Wei, per the invitation of the CITIC Securities, held a company-wide training session aimed at CITIC teams specifying in direct investment, private equity, compliance, and legal affairs. The topic is “Managing Common Risks Arising Out of Equity Investment”. Dozens of employees of CITIC Securities and its subsidiary Goldstone Investment participated in person and many more watched the video of the session online through CITIC’s internal learning platform.
The teams at CITIC Securities are very professional in equity investment, with vast first-hand experiences. Mr. Sun’s speech and Q&A creatively focused on five specific issues that frequently cause disputes and warrant high attention. These issues are: the importance of insisting on making the founder of the target company and his/her spouse as counterparty, the enforceability of exclusive negotiation clause in term sheets, the risk of flawed shareholders’ resolution, the risk of VIE structure, and the effect of buy-back clauses when the obligor reduce its shareholding or exit the target company.
The speech was supported by many first-hand cases and influential precedents. The participants from CITIC Securities highly praised it for focusing on pain points and offering practical solutions. In the Q&A session, Mr. Sun had a great discussion with the CITIC teams on issues they encounter in day-to-day business operations. CITIC Securities recorded the whole session as a permanent internal training material.