A new chapter: next evolutionary phase of the new PRC Company Law - Corporate governance
CGj, the journal of the Hong Kong Chartered Governance Institute, re-publishes the first of this two-part article authored by partner Ian Lewis, together with Elfie Wang of Meng Bo Law Office.
The article discusses China's New Company Law, effective from 1 July 2024, which impacts various aspects of corporate governance, including directors’ responsibilities, the role of supervisors and requirements regarding quorum.
Under the new law, the legal representative of a company is now required to play an active role in the conduct of a company’s business. In state-funded companies, including foreign invested companies in which the state holds a controlling share, the Chinese Communist Party is now required to play a leading role, which is something that foreign investors may need to review in the context of both established joint ventures and the establishment of new entities.
The second part of the article will be published in August by CGj.
