The Protection of Minority Shareholders under the new Company Law of the People’s Republic of China

Seminar Paper , 2009 , 13 Pages , Grade: B+

Law - Civil / Private, Trade, Anti Trust Law, Business Law

The Company Law of the People’s Republic of China was revised in the year 2005. This paper analyses the protection of the minority shareholders under the new law.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• The Relevant Laws and Regulations
  • The Company Law of the People's Republic of China
  • The Securities Law of the People's Republic of China
  • Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures
  • Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures
  • Regulations for the Implementation of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures
  • Detailed Rules on the Implementation of the Law of the People's Republic of China on Sino-Foreign Joint Cooperative Ventures
  • Code of Corporate Governance for Listed Companies in China
  • Provisions of the Supreme People's Court about Several Issues Concerning the Application of the Company Law of the People's Republic of China (I)
  • Provisions of the Supreme People's Court about Several Issues Concerning the Application of the Company Law of the People's Republic of China (II)
• The Protection of Minority Shareholders
  • Joint Stock Companies
  • Limited Liability Company
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to analyze the protection of minority shareholders under the new Company Law of the People's Republic of China, which was revised in 2005. The paper examines the relevant laws and regulations that impact minority shareholder protection, particularly focusing on the differences between joint stock companies and limited liability companies. Key themes explored in the paper include:

• The relationship between minority shareholder protection and attracting investors and capital
• The evolution of minority shareholder protection in China, from a focus on state-owned companies to a more developed framework for private investors
• The importance of corporate governance structures in safeguarding minority shareholders' rights
• The specific legal provisions and mechanisms in place for protecting minority shareholders in joint stock companies and limited liability companies
• The challenges and limitations of minority shareholder protection in practice

Zusammenfassung der Kapitel (Chapter Summaries)

Introduction

This chapter introduces the concept of minority shareholder protection and its significance in attracting investment. It highlights the contrast between countries with high and low levels of minority shareholder protection and examines China's unique position in this context. The chapter explains the historical development of corporate governance in China, emphasizing the changes brought about by the 2005 amendment of the Company Law.

The Relevant Laws and Regulations

This chapter provides an overview of the key laws and regulations impacting minority shareholder protection in China. It outlines a comprehensive list of relevant legal frameworks, including the Company Law, the Securities Law, and specific regulations governing Chinese-foreign joint ventures.

The Protection of Minority Shareholders

This chapter delves into the specific mechanisms for protecting minority shareholders in both joint stock companies and limited liability companies. It discusses the Code of Corporate Governance for Listed Companies in China and its emphasis on fair treatment for all shareholders, especially minority shareholders. The chapter also examines provisions relating to shareholder rights, such as the right to be informed about company affairs and the right to engage in civil litigation. It further explores the requirements for shareholders to initiate legal action against companies for violations of their rights.

Conclusion

The conclusion summarizes the main points of the paper and discusses the overall effectiveness of minority shareholder protection under the revised Company Law. It explores potential challenges and future directions for strengthening the legal framework surrounding minority shareholder protection in China.

Schlüsselwörter (Keywords)

This paper explores the crucial area of minority shareholder protection in China, examining key topics such as corporate governance, joint stock companies, limited liability companies, legal framework, shareholder rights, and the evolution of corporate governance in a rapidly developing market.

• College: Tsinghua University
• Grade: B+
• Author: Mag. Ludwig Hetzel (Author)
• Publication Year: 2009
• Pages: 13
• Catalog Number: V133416
• ISBN (eBook): 9783640400348
• ISBN (Book): 9783640400140
• Language: English
• Tags: chinesisches Recht, Chinese law, Gesellschaftsrecht, company law, minorities shareholder's rights, minderheitenrechte