Directors’ Liability in China

(By Yu ZhiyuanDirectors’ 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.

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Guiding Case by China Supreme Court: JV’s Minority Shareholders May Undertake All Company’s Debt

By You Yunting

By judicial practices in China, in case the Sino-foreign invested company, which however is operated under the management of Chinese shareholder, is trapped in the insolvency, the foreign investors could be judged to take all the debt of the company, not subject to the total amount of its investment, when Chinese partner chooses to disappear or refuse to clear the debt. And in recent, as per the latest 3rd guiding cases by China Supreme People’s Court, by a decision indicated in it, the non controlling shareholder shall be liable to the joint liability to the non-settled debt of the company, that obviously aggravates the burden of the company shareholder. Then, what is the fair way to avoid such risks? We put forward our answer to it in today’s post.

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Comments and Analysis on Beijing Treaty on Audiovisual Performances

By Zhan Yi

On 26th June, the acceded countries at the diplomatic conference of WIPO signed the Beijing Treaty on Audiovisual Performances (the “Treaty”); the Treaty first established the overall protection system of performers’ rights concerning audiovisual works around the world.  The Treaty has covered more than 40 countries; with China being one of them. This essay is to analyze the effect on the audiovisual industry from the new Treaty, as well as the latest copyright law revisions in China.

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Music Industry’s Revision Suggestion to Drafted Copyright Law, II

The exposure draft of revised Copyright Law (the “Draft”) has gained wide attention among the public after its publication on the website of the National Copyright Association of China (NCAC). One of the reasons contributing to the heated discussion is the articles possibly damaging the interests of musicians who have expressed their strong opposition to the Draft.

In recent, the Record Committee of China Audio & Video Association (CAVA) affiliated to General Administration of Press and Publication of PRC has made their suggestions to the modification on the Draft. To the introduction on the website of CAVA, it has more than 520 member units that are engaged in audio-video production, duplication, distribution and marketing. The member units have not only the largest state record corporation, audio-video press, but also the best music-make corporation, distribution and marketing corporation and the large chain marketing corporation at home. Under CAVA there are several working committees such as distribution, record, disc, educative publishing, digital audio-video and china marketing committee. And the Record Committee making the suggestion this time is the working committee of the CAVA.

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Music Industry’s Revision Suggestion to Drafted Copyright Law, I

The exposure draft of revised Copyright Law (the “Draft”) has gained wide attention among the public after its publication on the website of the National Copyright Association of China (NCAC). One of the reasons contributing to the heated discussion is the articles possibly damaging the interests of musicians who have expressed their strong opposition to the Draft.

In recent, the Record Committee of China Audio & Video Association (CAVA) affiliated to General Administration of Press and Publication of PRC has made their suggestions to the modification on the Draft. To the introduction on the website of CAVA, it has more than 520 member units that are engaged in audio-video production, duplication, distribution and marketing. The member units have not only the largest state record corporation, audio-video press, but also the best music-make corporation, distribution and marketing corporation and the large chain marketing corporation at home. Under CAVA there are several working committees such as distribution, record, disc, educative publishing, digital audio-video and china marketing committee. And the Record Committee making the suggestion this time is the working committee of the CAVA.

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