Current location:sport >>
Company Law draft revision to bolster confidence
sport34People have gathered around
IntroductionA 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.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“Culture Craft news portal”。http://cambodia.nanorelatosmagicos.com/content-26d599954.html
Related articles
Supreme Court declines to hear challenge to Maryland ban on rifles known as assault weapons
sportWASHINGTON (AP) — The Supreme Court on Monday declined, for now, to hear a challenge to a Maryland l ...
【sport】
Read moreBest bank accounts: Top current accounts for interest and rewards
sportOur bank account is the financial product that we use more frequently than any other, but many peopl ...
【sport】
Read moreHK$3.5 billion Hong Kong Palace Museum opens after typhoon delay
sportThe Hong Kong Palace Museum opened its doors to the public on Sunday, following a day’s delay ...
【sport】
Read more
Popular articles
- Travis Kelce downs whiskey shot on slice of bread at Kelce Jam without Taylor Swift
- How to sort your pension and Isa before the tax year ends: This is Money podcast
- The perfect introduction to Wainwright's Lake District world
- I'm a travel expert
- Trump accepts a VP debate but wants it on Fox News. Harris has already said yes to CBS
- Xi Jinping arrives in Hong Kong for July 1 celebrations, makes first visit to city since 2017
Latest articles
Ohio judge to rule Monday on whether the state’s abortion ban stands
From caves to lagoons and lost
Best stocks & shares Isas: Pick the right investment account
Revealed: The pernickety passport rules Brits NEED to know before the Easter getaway
Iran helicopter crash that killed President Raisi could reverberate across the Middle East
Best credit cards rated: Top for cashback, rewards and clearing debt
LINKS
- Tibetan Students Receive Care, Education in Wuhan
- Tibetan Students Receive Care, Education in Wuhan
- Chinese cities to see tourism peak in New Year's Day holiday
- Much at stake for Barca, Xavi in Napoli trip
- Tibet's cultural tourism receives help from upgraded facilities
- Tibetan Students Receive Care, Education in Wuhan
- German Vlogger Documents China's Ethnic Groups
- Spring Festival holiday spurs duty
- Experiencing Uygur Culture in Kashgar
- Experts' views on Hangzhou Asian Games