By Craig Anderson and Bingna Guo, O'Melveny & Myers LLP
The new PRC Company Law (New Company Law)(中华人民共和国公司法), which became effective on January 1 2006, reconstructs the legal relationships between the investors and
Corporate Governance under the New Company Law (Part 2): Shareholder Lawsuits and Enforcement
China's new Company Law has laid a solid foundation for companies to improve their corporate governance, including new provisions granting significant rights to minority investors vis à vis management and controlling shareholders. The new law also grants shareholders the ability to enforce these rights through derivative and direct lawsuits. However, given China's weak enforcement environment and relative inexperience with private lawsuits, is the new law adequate to uphold shareholders' rights?
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