(By Yu Zhiyuan) Directors’ liability in China is an attractive matter to foreigners who act or intend to act as directors in China. Today, we would like to introduce directors’ liability in China to the below questions.
1. What are the key areas of liability that directors in China need to be aware of?
Directors shall abide by laws, administrative regulations and articles of association of the company and shall have the fiduciary and diligent duties to the company.
Directors may not abuse their authorities by accepting bribes or generating other illegal income, and may not convert company property.