The new PRC Company Law, which comes into effect on July 1, 2024, has drawn significant attention, particularly regarding the adoption of a series of new rules for registered capital contribution made by shareholders. However, detailed answers for some practical questions are not addressed in the new PRC Company Law. In order to effectively implement
Company Law
Highlighting Key Updates to the New Company Law
By Simon Li on
Posted in Company Law
On July 1, 2024, the highly anticipated amended PRC Company Law (the “New Company Law”) has officially taken effect. The New Company Law ushers in some significant transformations in the way firms are established and run in China, a change that extends to foreign firms investing in the country. In this article, we…
Legal Risks in Capital Reduction and Dissolution – Discussion from a Case
By Dan Zhang on
Posted in Company Law
This writer recently encountered a case: a company (hereinafter referred to as “Company A”) with a large amount of registered capital, felling such large, registered capital was unnecessary, reduced it. In the process of reduction, the capital reduction information was only announced in local newspaper but not notified to every single creditor. One…
China Set to Revise Its Company Law
By Simon Li & Linda Gao on
Posted in Company Law
In December of 2021, the Standing Committee of the National People’s Congress of China published the Draft Revision to the Company Law of China (the “Draft Revision”).
The Draft Revision has made significant changes to the current Company Law which was promulgated in 1993, after which being revised for several times with the…