Your current location:HOME >style >Company Law draft revision to bolster confidence 正文
TIME:2024-04-30 02:49:44 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.
US opens investigation into Ford crashes involving Blue Cruise partially automated driving system2024-04-30 02:28
Family of American man believed to be held by Taliban asks the UN torture investigator for help2024-04-30 01:54
Revealed: The 5 popular brands responsible for the most plastic pollution in the world2024-04-30 01:45
I'm a cart girl2024-04-30 01:44
Rubiales denies wrongdoing when questioned in probe into Saudi Arabia deal for Spanish Super Cup2024-04-30 01:02
Olivia Dunne calls for boyfriend Paul Skenes to get his Pittsburgh Pirates MLB debut2024-04-30 00:57
Jeff Bezos's glamorous fiancée Lauren Sanchez is unrecognizable in never2024-04-30 00:55
Hamas releases distressing proof2024-04-30 00:17
Who is Humza Yousaf's wife Nadia El2024-04-30 00:14
Zendaya finds the Met Gala 'terrifying' as she prepares to co2024-04-30 00:03
Chinese Language Day celebrated at UN with cultural exhibition2024-04-30 02:39
The Hollywood daughters raiding their mums' wardrobes... so who do you think wore it better?2024-04-30 02:38
A US citizen facing drug charges in Russia appears in court. His case was adjourned until mid2024-04-30 02:23
Windmill sails at Moulin Rouge have collapsed2024-04-30 02:10
At least 40 people die in Kenya after dam collapses2024-04-30 01:58
Belarus claims it prevented drone attacks from Lithuania. Vilnius rejects the allegations2024-04-30 01:31
What do weight loss drugs mean for a diet industry built on eating less and exercising more?2024-04-30 01:12
DEAR JANE: My best friend invited me on vacation with her2024-04-30 00:39
Pakistani FM Ishaq Dar designated deputy PM2024-04-30 00:37
French Open to reveal second retractable roof court at Roland Garros ahead of Olympics2024-04-30 00:10