Company Law of the People's Republic of China
The Company Law of the People's Republic of China is a law which was passed by the National People's Congress of the PRC on 29 December 1993 and came into force on 1 July 1994.[1] It has been amended several times since then. The most current version of the law took effect in 2018.[2] The law regulates limited liability and joint stock companies.[3]
The main purpose of the law is stated in Article 1, "The Company Law of the People's Republic of China (hereinafter referred to as the "Law") has been enacted in order to standardize the organization and activities of companies, protect the lawful rights and interests of companies, shareholders and creditors, safeguard the social and economic order and promote the development of the socialist market economy."[2]
Article 108 states that "A company limited by shares shall have a board of directors of five to 19 members."
Contents[edit]
The Company Law contains 13 chapters and 218 articles.[2] The chapters deal with the following topics:
Chapter I: General Provisions
Chapter II: Establishment and Organizational Structure of Limited Liability Companies
Chapter III: Transfer of Equity Interests in Limited Liability Companies
Chapter IV: Establishment and Organizational Structure of Companies Limited By Shares
Chapter V: Issuance and Transfer of Shares in Companies Limited by Shares
Chapter VI: Qualifications and Obligations of Directors, Supervisors and Senior Officers of Companies
Chapter VII: Corporate Bonds
Chapter VIII: Financial Affairs and Accounting of Companies
Chapter Ix: Merger and Division, Increase and Reduction of Capital of Companies
Chapter X: Dissolution and Liquidation of Companies
Chapter XI: Branches of Foreign Companies
Chapter XII: Legal Liability
Chapter XIII: Supplementary Provisions.
References[edit]
- ^ Xioa, G., Reforming the governance structure of China's state-owned enterprises, Public Administration and Development, 18 (1998), pp 273-280, John Wiley & Sons Ltd.
- ^ a b c "Company Law of the People's Republic of China". mofcom.gov.cn. Retrieved 2019-11-19.
- ^ Wang, Chang (2013). Inside China's legal system. Madson, Nathan H. Oxford, UK: Chandos Publishing. pp. 156–8. ISBN 978-0857094612. OCLC 878805962.