Corporate Governance

Approval for foreign investments streamlined further.

Lack of workout culture may hamper company rescues in China

Mofcom hands down more approval authority.

Mofcom delegates the authority to approve foreign-invested companies with an investment nature with registered capital of US$100 million or less to provincial-level and sub-provincial-level local authorities.

Acquisition of domestic enterprises in the encouraged or permitted category which transaction amount is less than or equal to US$100 million may be approved by local authorities.

The amended Law allows insurance companies to invest in bonds, stocks, securities investment fund shares and immovable property.

Capital contribution in the form of equity gets its official go-ahead.

A new era of differentiated regulation for insurance companies.

Before starting any programme of mass lay-offs in China, companies must be aware of the legal issues and the appropriate procedures to follow. By Nancy Sun and Kirsten Gao, Minter Ellison, Shanghai.