Other terms and conditions for investment in a foreign company can include prepayment of the first year’s attorney, accountant and consultants fees along with $500,000 for investment awareness programs with a “use it or lose it” clause. Terms and conditions can also include a clause that prevents a change in the CFO position within the first twelve months of being public without written permission by the investors. Case in point – in 2007, sixty nine (69) Chinese companies went public with nine (9) of them changing their CFO’s in the first year. Now, that could mean the company’s wanted to bring in more qualified individuals for the CFO position or they felt they could drop the position altogether because they were now public. Either way, these types of issues are of great concern to US investors. For example; Chinese companies main goal is going public and they consider that achievement the end of the race when, in fact, it is actually the start of the race.

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