China’s pending Company Law reform: Preparing for the key changes

November 2023

China is in the process of finalising amendments to its new Company Law which are likely to be implemented in the near future. The changes affect many critical aspects of corporate establishment, operations and governance, including imposing greater personal liability for directors, supervisors and management and requiring mandatory employee involvement in the governance of large companies. As such, shareholders of Chinese companies should carefully consider the changes and start to prepare for their implementation. Investors considering setting up a Chinese company should also be considering the pending changes to capital contribution requirements. This article summarises ten of the key changes for companies in the proposed amendments.