Authored by: Mark Schaub, Zhao Xinhua, Shan Wenyu, Sima Danni and Mi Hualin
On 29 December 2023, the Standing Committee of the National People’s Congress of the PRC adopted amendments to the PRC Company Law (2023 Revision) (the “New Company Law”).
The New Company Law makes substantial changes to the current Company Law in a number of regards, including time limits on capital contribution, overhauling of corporate governance structures, expanded powers for the board of directors, increased director liability, new rules in relation to equity transfer, a simplified route to reducing the registered capital, to name a few of the main issues.