Company Limited by Shares (CLS): A Powerful Legal Vehicle for Group Restructuring

March 31, 2004 | BY

clpstaff &clp articles

By Martin G. Hu [email protected] has come a long way in the provision of viable legal vehicles for group restructurings by multinationals.…

By Martin G. Hu [email protected]

China has come a long way in the provision of viable legal vehicles for group restructurings by multinationals. The "company limited by shares" (CLS) is the most recent product in the legal evolution of China's corporate structures. For many years, legally established foreign-invested enterprises could only be created as one of three types: equity joint ventures (EJVs, per the 1979 PRC Equity Joint Venture Law), wholly foreign-owned enterprises (WFOEs, per the 1986 Wholly Foreign-owned Enterprise Law(中华人民共和国外资企业法)) and cooperative joint ventures (CJVs, per the 1988 Cooperative Joint Venture Law).

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