On December 29, 2023, the Standing Committee of the National People's Congress of the People's Republic of China promulgated the amended Company Law of the People's Republic of China ("PRC" or "China") (the "2023 Company Law"), after its deliberation of four versions of draft amendments...
Key changes to China’s 2023 company law for multinational businesses, with an emphasis on corporate governance requirements for limited liability companies.
TheNew Company Law, as a fundamental regulation overseeing corporate governance in China, introduces significant changes to the legal landscape for FIEs. In this article, we summarize key issues that foreign investors should pay attention to in the New Company Law, explore their potential imp...
On 29 December 2023, China passed a reform of its Company Law . After a legislative process lasting several years, the comprehensively revised law will come into force on 1 July 2024.
China April 29 2024 In the third article of this series, we will focus on the modifications with respect to senior management’s liabilities in the new Company Law. 1. The “Senior Management” The first thing need to be mentioned is that the term of “senior management” is defined under...
China's New Company Law has far-reaching implications for businesses. FIEs must understand the provisions and initiate necessary adjustments.
Discusses several changes to the Chinese corporate law as of March 2006. Relaxation of the requirements for company incorporation; Introduction of new rules and principles to better protect the interests of investors; Applicability of the amendments to the Chinese corporate law to foreign-invested ...
Company Law of the People's Republic of China (IV)", according to which the courts should consider "factors such as the quantity, price, payment method, and deadline of the transfer of shares" when determining compliance with...
The New Company Law offers directors the right to compensation from the company if unjustifiably removed prior to expiration of his/her office term. This may prove challenging to MNCs when managing directors are appointed to entities ...
Share repurchase becomes prevalent in the recent years in China, and China gradually changes its regulatory attitude from restriction to encouragement on it. In this paper, we present that the new round of Company Law revision in China reduces the signalling role of share repurchases; however, whe...