Impact of the new Company Law on investment disputes

The 14th National People’s Congress Standing Committee passed a revised Company Law, which will come into effect on 1 July 2024. This revision summarises practical experience and theoretical achievements, strengthens the responsibilities of all parties, and effectively safeguards the legitimate rights and interests … (Read more >)

Changes in shareholder rights under new Company Law

The new Company Law becoming effective on 1 July 2024 introduces many significant changes having material effect on company law practices and corporate governance, with one key revision regarding shareholder rights. Safeguarding legitimate rights of compliant shareholders, this provides additional avenues to maintain capital adequacy … (Read more >)

Preventing corporate governance risks under new Company Law

The new Company Law promotes the transformation of corporate governance from shareholder primacy to director primacy. This imposes governance responsibility on entrepreneurs such as directors, supervisors, officers (DSOs) and actual controllers of a company, increasing their risk of performing duties with their personal property at stake … (Read more >)

New Company Law offers exits for minority shareholders

The new Company Law has protections for minority shareholders. If disputes arise between this group and a controlling shareholder, or a controlling shareholder suppresses the minority’s interests at management level … (Read more >)

Three major amendments to new Company Law in taxation

A revision of the new Company Law was adopted on 29 December 2023 at the 14th National People’s Congress, and will come into effect on 1 July 2024. This revision will certainly have a knock-on effect on the tax treatment of company business … (Read more >)

New Company Law reforms capital system

China’s newly revised Company Law will take effect on 1 July 2024. It brings profound changes to the establishment, operation and governance of Chinese corporate entities. This article analyses the key revisions regarding the company capital system. It highlights the changes, risks and response measures for investors … (Read more >)

Challenges in reducing subscribed registered capital

The new Company Law has enhanced the system of registered capital subscription and registration, stipulating that limited liability companies must fully pay up their registered capital within five years from their establishment, while joint-stock limited companies must fully pay up their capital upon establishment … (Read more >)

Revamp of corporate capital regime under revised Company Law

After multiple rounds of deliberations, the fourth draft amendment to China’s Company Law was formally adopted on 29 December 2023 and will come into effect on 1 July 2024 … (Read more >)

The right to company name under new Company Law

Acompany’s name reflects its image, reputation and value. Through the name of the company, people can infer the quality of the company’s products and management level. But the current Company Law has no explicit provisions on the company’s right to name … (Read more >)

Company Law amendments: highlights and shortcomings

The 2023 amendments to China’s Company Law make substantial additions and modifications to the original, spanning 112 articles. In many aspects, the revised law represents a significant legislative step-up; but in others, it is also unfortunately inadequate … (Read more >)

Key concepts analysis of new Company Law

The new Company Law was recently approved. For this article, the author carried out a thorough analysis of the law to interpret it and facilitate its smooth implementation. The analysis is based on two types of books: those published by the legislature; and judicial interpretations issued by the Supreme People’s Court for understanding and applicatione … (Read more >)

New laws tighten DSOs’ criminal compliance obligations

The revised Company Law was passed by the Standing Committee of the National People’s Congress (SCNPC) on 29 December 2023, marking the most extensive amendments to the Company Law since 1993 … (Read more >)

Governance and foreign-invested enterprises under new Company Law

Following the implementation of the Foreign Investment Law, the three previous laws governing foreign investment – the Law on Chinese-foreign Equity Joint Ventures, the Law on Foreign-capital Enterprises, and the Law on Chinese-foreign Contractual Joint Ventures – have been abolished. On 29 December 2023, the Standing Committee of the National People’s Congress passed the new Company Law, which will come into effect on 1 July 2024 … (Read more >)

The Company Law (Third Review Draft), deliberated by the 5th session of the Standing Committee of the 14th National People’s Congress on 1 September 2023, for the first time adds a provision (article 224) stating: “A company shall reduce its registered capital by reducing the amount of capital contributed, or shares held by shareholders, in proportion to their capital contribution or shareholding, except as otherwise provided for by any law.” … (Read more >)

On 29 December 2023, the Standing Committee of the National People’s Congress of China promulgated the amended Company Law, after its deliberation of four versions of draft amendments in the past three years. The new Company Law will come into force on 1 July 2024.

The new Company Law not only governs new companies established after its effective date, but also has significant implications on existing companies … (Read more >)

Equity transfers under revised company law

The much anticipated Company Law of China (Third Draft for Revision) was reviewed by the Standing Committee of the National People’s Congress and opened for public comment on 1 September 2023 … (Read more >)

Countdown for insurers under Foreign Investment Law

Afive-year transitional period for compliance with the new unified Foreign Investment Law – requiring foreign-invested companies to adjust their organisational form and structure in accordance with the Company Law – ends on 31 December 2024 … (Read more >)