Thursday, March 28, 2019

Company Law of the People’s Republic of China

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The '''Company Law of the People's Republic of China''' is a law in the [[People's Republic of China|PRC]] that came into force on 1994, and has been amended multiple times since then. The most current version of the law took affect in 2013.<ref name=":0"></ref> The law regulates limited liability and joint stock companies.<ref name=":1"></ref>

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." <ref name=":0" />

Article 108 states states that, " A company limited by shares shall have a board of directors of five to 19 members."

The '''Company Law''' contains 13 chapters and 218 articles.<ref name=":0" /> The chapters deal with the following topics:

Chapter I: General Provisions

Chapter II: Establishment and Organizational Structure of Limited Liability Companies

Chapter III: Transfer of Equity Interests in Limited Liability Companies

Chapter IV: Establishment and Organizational Structure of Companies Limited By Shares

Chapter V: Issuance and Transfer of Shares in Companies Limited by Shares

Chapter VI: Qualifications and Obligations of Directors, Supervisors and Senior Officers of Companies

Chapter VII: Corporate Bonds

Chapter VIII: Financial Affairs and Accounting of Companies

Chapter Ix: Merger and Division, Increase and Reduction of Capital of Companies

Chapter X: Dissolution and Liquidation of Companies

Chapter XI: Branches of Foreign Companies

Chapter XII: Legal Liability

Chapter XIII: Supplementary Provisions.


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