Other Briefings
Company Law Draft Judicial Interpretation Part III: Nominee Shareholding, Investor Rights Protection, and Equity Transfer
The draft judicial interpretation reshapes rules on nominee shareholders and investor rights, and outlines new guidance on enforcement and equity transfers.
Company Law Draft Judicial Interpretation Part II: Shareholder Capital Contribution Obligations
The draft judicial interpretation refines standards on shareholder contributions, liability, and enforcement, providing greater clarity for companies and investors.
Company Law Draft Judicial Interpretation Part I: General Provisions
The draft judicial interpretation introduces clearer rules for governance, liability, and dispute resolution, offering more predictable standards for companies and stakeholders.
China Company Law Follow-Up: Rules Clarified on Use of Reserve Funds, Non-Monetary Capital Contributions
China’s Ministry of Finance has clarified compliance procedures for using reserve funds to offset losses and making capital contributions through non-monetary assets, with implications for financial reporting, compliance procedures, and fund management.
China’s Supreme Court Clarifies Non-Retroactive Application of Article 88 (1) of the New Company Law
China’s Supreme People’s Court has confirmed that Article 88(1) of the New Company Law will not be applied retroactively to disputes involving equity transfers made before July 1, 2024. This clarification aims to alleviate widespread concerns among prior shareholders and resolve inconsistencies in judicial rulings across regions.
New Draft Measures to Further Clarify Implementation of China’s Amended Company Law
The draft measures clarify requirements for company registration, removal of personnel, payment of registered capital, and many other rules under the amended Company Law.
Complying with New Registered Capital Rules under China’s Revised Company Law
Companies established before the new company law took effect on July 1, 2024, should note the timeline to adapt to the new registered capital rules in China.
China Issues Judicial Interpretations on the New Company Law’s Applicability and Retrospective Effect
The final version of the 2023 China Company Law came into effect July 1, 2024 and the Supreme People’s Court has issued judicial interpretations regarding the application and effectiveness of the Company Law. While adhering to the principle that laws do not apply retroactively, the Interpretations clarify situations where provisions of the New Company Law take precedence.
