Corporate Governance

Whilst China's new measures for environmental impact assessment are good news for the environment, these may cause problems for project owners by potentially delaying construction and even losing business opportunities if a public hearing is required.

(Issued by the Ministry of Finance and the State Administration of Taxation on, and effective as of, January 9 2006.)

While it maintains the existing distinction between partial and full foreign-invested enterprise status, the Measures have new stipulations on investor qualifications, share transfer regulations, general offer requirements, corporate procedures and methods of acquisition payment.

The new rules on foreign strategic investment aim to restore investor confidence in merger and acquisition activity in China. What are the new reforms and how will they assist new investors in Chinese listed companies?

Promulgated: October 27 2005Effective: January 1 2006Main contents: The Law comprises:Part One: General ProvisionsPart Two: Establishment and Organizational…

Issued: October 19 2005Main contents: The Opinions put forward 26 points to improve the quality of listed companies. Article 6 suggests listed companies…

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Promulgated: October 21 2005Effective: December 1 2005Main contents: The Circular deals with issues such as:1. delayed payments of at least 180 days and…

Whilst China's new Company Law is not all it could have been, it goes a long way in introducing protection for minority shareholders, improving corporate governance and ensuring more realistic capitalization requirements for the establishment of companies.