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]
In 2024, the law underwent significant reforms.[4] All companies with more than 300 employees, including local subsidiaries of multinational corporations, became required to appoint a worker representative to the board who must be consulted for all major company decisions.[4]
References
[edit]- ^ Xiao, Geng (August 1998). "Reforming the governance structure of China's state-owned enterprises". Public Administration and Development. 18 (3): 273–280. doi:10.1002/(SICI)1099-162X(199808)18:3<273::AID-PAD17>3.0.CO;2-T. ISSN 0271-2075.
- ^ a b "Company Law of the People's Republic of China". mofcom.gov.cn. Archived from the original on 2021-10-22. Retrieved 2019-11-19.
- ^ Wang, Chang (2013). Inside China's legal system. Madson, Nathan H. Oxford, UK: Chandos Publishing. pp. 156–8. doi:10.1016/c2013-0-16271-x. ISBN 978-0857094612. OCLC 878805962.
- ^ a b "China is overhauling its company law". The Economist. August 8, 2024. ISSN 0013-0613. Archived from the original on 2024-08-09. Retrieved 2024-08-09.