(By Yu ZhiYuan) On 28 December 2013, the decision on amending the previous company law was promulgated by the National People’s Congress. The amendment this time will concentrate solely on changing the corporate capital system dramatically in the following three ways. First, the registered capital to-be-paid-in system will be launched. Second, the minimum registered capital will no longer be required. Third, the maximum proportion of intangible assets to the total registered capital will no longer be required. Obviously the amendment was made as a response of legislative authorities to the resolutions approved at the Third Plenary Session of the Eighteenth Central Committee. This article provides an analysis and brief comments on the amendment.
Notice: On December 28, 2013, China adopted a new amendment to the Corporate Law which will come into force on March 1, 2014. Combining with our original 2005 version of the Corporate Law, Ms Wang translates the new amendment to the Corporate Law into English and posts it today. If anyone needs to reprint our translated revision on web, please note the following content on the reprint page: This amendment is translated by Bridge IP Law Commentary http://www.chinaiplawyer.com.
To help foreign friends better understanding of Chinese laws, today we would first publish a comparison between the 2005 version of the Corporate Law and the 2013 amendment.
(by Bai Lituan) After six months of tense negotiation without any satisfactory result over a dispute of the 8-1 Pearl Project land plot on the Bund, Fosun (00656.HK) and SOHO China (00410.HK) finally chose to take the case to court in Shanghai. The first hearing of the case was in late November 2012. Before then, Fosun insisted that the share transaction between SOHO China and Shanghai Zendai Group damaged its right of preemption.
A three-year lasting dispute between shareholders of a property management company (the “Company”) was finally settled in recent, with the infringing shareholder judged to compensate the Company. Commencing from 15th October 2008, the case was adjudicated on 20th January 2012 at last after the arbitration of 3 years and 3 months, and with its complex plotting, the dispute could be a lesson to the shareholders of Chine enterprises.
In 2008, after years of operation, the Company has come into a stable and fast development, and its major shareholder Zhang, also the legal representative and chief director of the Company planned to introduce the strategic investment to expand the scale of the company. In June of that year, Shi, who once studied abroad and got in touch with Zhang on the beginning of the same year, purchased 23% of the company share on the approval by other shareholders, and took the post of deputy general manager in the company afterwards, which led to the separation of the Company power that Zhang took charge of the clients exploration and relationship while Shi was responsible for inner management. On 29th August, the new Legal Director appointed by Shi adjusted the Articles of the Association, and by the new regulations the supervisor has the right to dismiss the legal representative and director of the Company. And that lay the powder hose to the future conflict in the Company.