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  • Under Swedish legislation (12:2 of the Companies Act), a Swedish company may not pay a dividend to its shareholders exceeding the free equity as shown in the most recent balance sheet adopted. Even within the free equity, a dividend may not be paid if it contravenes good business practice as dictated by the company's or group's capitalization, cash position or general financial situation.
  • On June 3 1997, as part of a comprehensive effort to encourage the development of the securities market, the Uruguayan Central Bank (BCU) issued Circular No. 1,549 implementing the Investment Funds Act passed by Congress on September 17 1996.
  • A major federal appeal court in the US has ruled that Hong Kong is not a foreign state for the purposes of deciding whether a Hong Kong company is entitled to sue an American firm in US courts. Because Hong Kong is not considered a state, a company organized under Hong Kong law lacks the ability to sue in US courts on the basis of diversity or 'alienage' jurisdiction.
  • JP Morgan, the fifth largest US bank by tier one capital, is buying 45% of American Century in a deal valued at US$900 million. American Century is the fourth largest US manager of no-load mutual funds (funds whose shares are sold without commission or sales charges).
  • International Bar Association
  • • Nancy Wodka, a project finance specialist, has moved from the Washington office of New York's Skadden, Arps, Slate, Meagher & Flom to the Washington office of Houston-based Bracewell & Patterson LLP. She will head the firm's team on international infrastructure projects .
  • The most important consideration for a laterally hired partner in choosing his or her new firm is not the level of compensation he or she will receive. Indeed, this consideration is placed fifth out of seven significant factors according to a survey by US lawyer search consultants Major, Hagen & Africa.
  • Clifford Chance has opened a second office in Germany. The Dusseldorf office is intended to capitalize on the heavy industries present in the Rhine-Ruhr area. Jan ter Haar, managing partner of Clifford Chance's Frankfurt office, explains: "We will be doing mainly corporate and M&A work, but we expect to pick up on the presence of IT and media sectors and bolster those practices too."
  • In July, New York's Fried, Frank, Harris, Shriver & Jacobson and Simmons & Simmons of the UK created an International Securities Unit to handle both the English law and New York law aspects of securities issues. The unit, to be based in London, will be staffed by partners and other lawyers from both firms. It will handle the full range of both equity and bond issues in the US, UK and worldwide.
  • Franz Nauschnigg, capital markets adviser to the Austrian minister of finance, talks to Graham Field