* 현재 컨텐츠 정보를 준비 중에 있습니다.

[닫기]

The newly revised Company Law of China("the Company Law 2005") presents several aspects as follows:
Firstly, the Company Law 2005 confirms that a company is not a part of State-owned properties controlled by the government, but a legal entity with its own life cycle of incorporation, development and dissolution. It can be said that the Company Law 2005 strengthened the independency of the company and guaranteed more transparency and efficiency way in its management compared to the Company Law 1994. For example, it loosened the former license system to the report system for incorporation and dissolution, broadened the independency in appointing the legal representative, and changed the supervisory authority from the State Administration for Industry and Commerce(SAIC) to State-owned Assets Supervision and Administration Committee of State Council(SASAC).
Secondly, several changes in the area of corporate governance are quite significant. Under the Company Law 1994, although the general meeting of shareholders was the highest authority of the company, the board of directors often abusively used the power over it owing to lackluster provisons. For this, the Company Law 2005 strengthened the requirement and legal responsibility of the management, and broadened the legal right of the meetings of shareholders. Moreover, by adding the provisons to protect shareholders, expecially minority shareholders, it remedied the provisions with priority given to the creditors.
Thirdly, the Company Law 2005 was revised to promote economic efficiency. To guarantee the independency of the company, it increased the subjects to be laid before the meeting of shareholders, and regulated to manage them according to the articles of association. Besides, it also included the provisions on reducing the amount of registered capital and the procedure steps to issue the shares and assign the credits, assigning shares of limited liability companies(LLC), permitting the establishment of one-person LLC, and innovating the financial system of the company.
Lastly, the Company Law 2005 regulated that the company should organize a committee of Communist Party of China(CPC). And by stipulating the position and role of the Trade Union in detail. it provided the legal basis for the activities of the CPC and employees.
Although the Company Law 2005 has the above positive aspects, there are still many accompanying rules and regulations in need of enactment to achieve the aims of revision. Of those, especially rules and regulations on company registration, tax, bankruptcy and fair trade laws will be enacted soon.

[닫기]