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  "documentTitle": "Herbalife, Ltd. (HLF)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "presentationDate": "2015-08-01 00:00:00",
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      "kind": "callout",
      "text": "KEY RESTRICTIONS UNDER CHINESE LAW:",
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      "text": "Compensation may NOT be based – directly or indirectly – upon sales performance of those participants whom you recruit",
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      "text": "1. Only a licensed direct-selling company (not individuals) may recruit, and it may not charge a fee or require product purchases\n2. Compensation must be based upon direct sales to consumers by the sales promoter by himself or herself\n3. Compensation is limited to 30% of sales volume\n4. Compensation may NOT be based – directly or indirectly – upon sales performance of those participants whom you recruit",
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      "kind": "paragraph",
      "text": "China has some of the strictest guidelines in the world governing “direct selling,” which is permitted only pursuant to licensing requirements and numerous regulations. In China, “pyramid sales” are prohibited.",
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      "text": "Source: Direct Sales Regulations, issued by the State Council of the People’s Republic of China (PRC) on August 23, 2005 and effective December 1, 2005. Pyramid Sales Regulations, issued by the State Council of the PRC on August 23, 2005 and effective November 1, 2005. Amendment VII to the Criminal Law of the PRC, issued by the Standing Committee of the National People’s Congress of the PRC on February 28, 2009 and effective immediately; Joint Policy Directive of the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security of the PRC, issued November 14, 2013. Full relevant text in Appendix",
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      "text": "Chinese Law: Direct Selling vs. Pyramid Sales",
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