China's new Company Law came into force on January 1 2006, amending legislation that had been in force since 1994. The PRC economy has become increasingly open and market-oriented so the time was ripe for a review of China's corporate law. The PRC government has not undertaken a wholesale reform of existing company law in China. Rather, in recognition of the need for a more business-friendly corporate code, it has eased certain restrictions and enhanced existing corporate governance and shareholder protection provisions. The new Law represents a staging post on the road towards consolidating the corporate regimes applicable to domestic entities and to foreign-invested enterprises.
ctions. The new Law expands the existing provisions on shareholder actions, but it remains to be seen how helpful they will be in practice. Three actions are available. First, a shareholder can challenge in court shareholder and board resolutions that do not comply with the...
The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our terms and conditions and privacy policy before using the site. All material subject to strictly enforced copyright laws. © 2011 Euromoney Institutional Investor PLC. For help please see our FAQ.