Your current location:HOME >style >Company Law draft revision to bolster confidence 正文
TIME:2024-05-01 15:46:20 Source: Internet compilationEdit:style
A draft revision to the Company Law has been put before Chinese lawmakers for a fourth reading on Mo
A draft revision to the Company Law has been put before Chinese lawmakers for a fourth reading on Monday, which officials and experts said comes amid China's ongoing efforts to enhance its business environment and bolster investment confidence.
The draft revision, submitted to a session of the Standing Committee of the 14th National People's Congress — China's top legislature — focuses on strengthening the framework of capital contributions, as well as clarifying resolution procedures for deprivation of rights and the dissenting process for shareholders subject to deprivation.
The seventh session, which kicked off in Beijing on Monday, is scheduled to conclude on Friday.
The proposed amendments to the Company Law are essential for deepening reforms in State-owned enterprises, fostering a more enabling business climate, enhancing property rights protections and promoting sound development of the capital market, the NPC Constitution and Law Committee said.
After undergoing three rounds of deliberations and revisions, the draft revision is now in a relatively developed shape, the committee added.
The latest draft revision has further refined the capital contribution system and reinforced the obligations of shareholders, highlighted by the explicit clarification of the time limit for shareholders' capital contributions in limited liability companies and the requirement for shareholders of joint-stock companies to fully pay their subscribed capital before the establishment of the company.
By introducing these provisions, the amendments seek to enhance the integrity of capital contributions, promote responsible shareholder behavior, contribute to a more robust business environment and enhance domestic and foreign investment, said Liu Junhai, director of the Renmin University of China's Business Law Center.
Moreover, the board of directors, as stipulated by the updated draft revision, can issue notices of deprivation to shareholders who have not fulfilled their capital contribution obligations within the prescribed time frame.
Shareholders who disagree with the deprivation notice have 30 days from the receipt of the notice to file a lawsuit with the people's court, according to the draft revision.
These amendments will play a crucial role in providing a comprehensive framework for addressing noncompliance with capital contribution obligations and ensuring fair and transparent corporate governance practices, Liu added.
Meanwhile, the draft revision has taken steps to enhance workers' democratic management and better safeguard their legitimate rights and interests, such as requiring companies to consider the opinions of employees when contemplating dissolution and bankruptcy.
By aligning the law with international best practices and tailoring it to the specific needs of China's evolving economy, the draft revision aims to provide a solid foundation for companies to flourish, compete globally and contribute to the country's sustained economic growth, Liu said.
China's current Company Law was enacted in 1993 and has undergone multiple revisions, including a comprehensive revision in 2005, and the most recent revision in 2018 focusing on capital systems in companies.
French cops drag pro2024-05-01 15:43
Potential and sound growth of real estate sector stressed2024-05-01 15:39
Copenhagen and Paris mayors exchange lessons learned after huge fires destroy landmarks2024-05-01 15:01
Vanderpump Rules' Lala Kent would rather make love with 'a cheese grater' than have sex with ex2024-05-01 14:48
Finnish hacker imprisoned for accessing thousands of psychotherapy records and demanding ransoms2024-05-01 14:31
Israeli soccer facing Palestinian calls for action by FIFA at annual congress2024-05-01 14:27
Alison Hammond's hunky new boyfriend 'quit Russia to avoid call2024-05-01 14:22
Prominent Baptist pastor in military2024-05-01 14:15
Alabama lawmakers propose compromise on gambling bill with lottery, electronic wagering machines2024-05-01 13:45
2 people smugglers sentenced to 9 years each in Spain for drowning deaths of migrants2024-05-01 13:10
Queen Mary and King Frederik are caught in a royal Photoshop row2024-05-01 15:38
Reuters photographer wins World Press Photo of the Year with poignant shot from Gaza2024-05-01 15:32
North Carolina high school student, 16, is suspended for saying 'illegal alien' in class2024-05-01 15:13
One in THREE people will be struck down with 'silent killer' amid huge surge in condition2024-05-01 15:06
Italy's League party picks a provocative candidate for European Parliament election2024-05-01 14:45
New Black congressional district in Louisiana bows to politics, not race, backers say2024-05-01 14:41
Kim Kardashian showcases signature curves in tiny black bikini as she inexplicably dives into knee2024-05-01 14:36
Leonardo DiCaprio tipped to play Frank Sinatra in new Martin Scorsese biopic2024-05-01 14:25
California's population grew in 2023, halting 3 years of decline2024-05-01 14:15
Louisiana bills seeking to place restrictions on where people can carry guns receive pushback2024-05-01 13:14