China reforms its company law: an analysis by Audit Asia Group

China's business landscape is undergoing a major transformation with the promulgation of the new Company Law, which is due to come into force on 1 July 2024. For international companies looking to invest in China, it is essential to understand the key revisions and implications of this law. In this article, we look at the critical aspects of the new Company Law and their importance for foreign investors.

Changes to company law in China mark major reforms in :

- capital management,

-governance structures,

-the responsibilities of directors,

-administrative processes,

All these new provisions are reshaping the regulatory landscape for companies operating in the country.

Florian Quinquis and Maxence Trubert, the heads of Groupe Audit Asia, have produced a summary of this new company law, aimed at international companies present in or wishing to establish themselves on the Chinese market.

The main aim of this reform is to reassure investors, mainly by increasing the transparency of the capital structure, the supervisory bodies and the accountability of management.