Corporate Governance

• 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?

  May 02, 2006

• Ministry of Commerce, Circular on Delegating Departments in Charge of Commerce at the Provincial Level to Carry out Review and Administration of Foreign-invested Construction Enterprises

  商务部关于委托省级商务主管部门审核管理外商投资建筑业企业的通知

  Issued: January 22 2006Effective: March 31 2006Main contents: The Circular delegates the departments in charge of commerce at the provincial level and…

  March 31, 2006

• Ministry of Commerce, Circular on Issues Relevant to Delegating Economic and Technological Development Zones at the State Level to Examine and Approve Foreign-invested Commercial Enterprises and Foreign-invested International Freight Forwarding Agencies

  商务部关于委托国家级经济技术开发区审批外商投资商业企业和国际货物运输代理企业有关问题的通知

  Issued: February 9 2006Main contents: The Circular delegates administrative commissions of economic and technological development zones at the state level…

  March 31, 2006

• China Insurance Regulatory Commission, Guiding Opinions on Regulating the Governance Structure of Insurance Companies (Trial Implementation)

  中国保险监督管理委员会关于规范保险公司治理结构的指导意见 (试行)

  Issued: January 5 2006Applicability: The Guiding Opinions shall apply to share system insurance companies. Other insurance companies and insurance asset…

  March 31, 2006

• China Securities Regulatory Commission, Measures for the Administration of the Equity Incentives of Listed Companies (Trial Implementation)

  中国证券监督管理委员会上市公司股权激励管理办法 (试行)

  Issued: December 31 2005Effective: January 1 2006Main contents: The Measures comprise:Part One: General ProvisionsPart Two: Common ProvisionsPart Three:…

  March 31, 2006

• China Banking Regulatory Commission, Guidelines for Managing the Risks Attaching to the Personal Financial Management Business of Commercial Banks

  中国银行业监督管理委员会商业银行个人理财业务风险管理指引

  Promulgated: September 24 2005Effective: November 1 2005Main contents: The Guidelines comprise:Part One: General ProvisionsPart Two: Management of Risks…

  March 31, 2006

• Ministry of Commerce, Circular on Delegating Departments in Charge of Commerce at the Provincial Level to Carry out Review and Administration of Foreign-invested Construction Design Enterprises

  商务部关于委托省级商务主管部门审核管理外商投资建设工程设计企业的通知

  Issued: January 22 2006Effective: March 31 2006Main contents: The Circular delegates the departments in charge of commerce at the provincial level and…

  March 31, 2006

• Renewable Energy Law Encourages a Hundred Flowers to Bloom

  New PRC legislation encourages and supports a broad range of renewable energy and related products and activities, in pursuit of energy supply diversity and security, environmental protection and sustainable development. Promotion of domestic manufacturing may leave foreign equipment exporters out in the cold, while foreign investors and technology providers stand to benefit from incentives and an expanding market.

  March 31, 2006

• Protecting Shareholders' Rights in Delayed Company Liquidations

  By Ji Hailong*The author may be contacted through Dr Sabine Kellerer, [email protected]: www.freshfields.comIn China, a company often…

  March 31, 2006

• New Regulations on Equity Incentives for Employees of Listed Companies

  Listed companies can apply for implementation of equity incentive measures and establish a comprehensive incentive and regulatory scheme. Listed companies may use its own shares as the subject matter of long-term incentives (including restricted shares and stock options) offered to its directors, supervisors, senior management personnel and other staff and workers. This Measures establish detailed regulations regarding incentive modes, incentive targets, source of shares, incentive amount, grant price and grant period etc.

  March 31, 2006