What laws apply to corporate governance in China?

Corporate governance in China is regulated by several laws. The Company Law of the People’s Republic of China (the “Company Law”) is the primary law governing corporate governance in China and provides the framework for protecting the interests of shareholders and creditors. The Company Law sets out the requirements for setting up a company in China, including rules on corporate governance and shareholder rights. Additionally, the Securities Law of the People’s Republic of China (the “Securities Law”) regulates securities and investment activities in China. The Securities Law addresses issues such as corporate disclosure, insider trading, and investor protection. The Corporate Governance Guidelines of the China Securities Regulatory Commission (the “Guidelines”) supplement the Company Law and the Securities Law by providing further guidance on corporate governance best practices in China. The Guidelines provide specific recommendations on board structure, shareholder rights, shareholder meetings, auditing and financial reporting. Additionally, the Enterprise Bankruptcy Law of the People’s Republic of China (the “Bankruptcy Law”) governs the restructuring of companies in financial distress. The Bankruptcy Law regulates the reorganization of struggling companies and outlines the rights of creditors and shareholders in the event of a bankruptcy. Ultimately, the corporate governance of companies in China is regulated by a combination of laws, regulations, and guidelines. To ensure compliance, it is important for companies to understand the requirements set out by each of these laws and regulations and to properly implement them.

What laws apply to corporate governance in China?

Related FAQs

Related Blog Posts