What rights do investors have in a joint venture in China?

Investors in a joint venture with a Chinese partner have certain rights that must be respected. First, they have the right to receive information about their venture, both current and future. They should also be involved in developing the business strategies, policies, and decisions of the venture. Second, investors have the right to participate in the management and operation of the venture. They have the right to appoint a board of directors and to be involved in the appointment of officers. They also have the right to review and approve all major business decisions and to participate in the formation and future development of the venture. Third, investors have the right to a certain degree of protection for their investments. They should receive contracts that guarantee their rights and that clearly state their financial commitments. Also, they should be informed of the risks associated with their venture and be provided with mechanism for dispute resolution. Finally, investors have the right to receive a return on their investments. This return should be commensurate with the risks and investments made. As per the Maryland Business Ventures Law, investors should also receive fair treatment in all aspects of the venture, including hiring, firing, and other decisions.

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